Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-03-17
THREE JUDGES TO SIT IN kE0.
kUk FEDERAL COURT TO
RULE ON IOWA LAWS.
BLUE SKY AN STERILIZATION
ACTS TO BE RULED UPON
Of suit Against Law Gov.
srninu Stock Sales Makes Work For
State Legal Dspartmsnt-ApriI "a
and is 70 Be Important Days in Judi.
eiat Procedure.

Special to Times Republican
Council Bluffs, March 1.-THE at
tention of Iowa will be directed to-
ward Keokuk on April IA and Is. when
three federal judges will sit jointly to
hear arguments against the legality OF
two important Iowa statutes. The re-
opening Of the case against the blue
sky law of Iowa will make much work
Tor the state legal department, as the
case was once tried before Judge Nc
Pherson and its constitutionality up-
held. In fixing the date for the rehear-
Ing of this case Judge Mcpherson also
announced that the hearing on the
sterilization law Will be held at Keo-
kuk April IA. Three federal judges will
sit on this case as well. The hearing
on the sterilization law. designed to
test the right OF the state to steriiize
criminals and other inmates OF state
institutions. was originally set for
hearing here next Saturday.
Several weeks ago judge Mcpherson
passed upon the blue sky law. holding
1t to be constitutional. A rehearing was
asked by the interested parties In the
case. and Judge Mcpherson granted
their application and designated three
federal judges to definitely determine
its validity.
Judge Walter I. Smith Of the circuit
court Of appeals. Judge John c. Pol
lock Of Kansas, and Judge Mcpherson
will hear the blue sky case, as we'll as
the sterilization case.
Permits TO Sell Stock.
The blue sky ltw, as it liz commonly
called, Is designed to regulate the bus
mess OF investment companies In the
state and to prevent fraudulent COM
panies from doing business here. Ac-
cordingly. all investment companies
are required to secure permission to do
business from the secretary Of state
and to submit to close supervision of
their assets and liabilities and the
means they employ in selling stock.
The law was attacked by several for
eign corporations some time ago. The
William r. Compton company OF Mis-
souri,. Breed, Elliott & Harrison Of In
diana and Mccoy & Co, Of Maine. were
plaintiffs In the action. and w. s. AL
len. secretary of state. and George
Cosson. attorney general. were named
as defendants. John Nickerson, Jr., Of
Missouri and A. 3. Leach 4 Co.. Of
Chicago and New York interviewed in
the case
The case was submitted TO Judge
Mcpherson on q demurrer. and after
arguments had been submitted he held
the law to be constitutional. There
upon the interested parties applied for
rehearing. showing that since Judge
McPhersong decision three federal
Judges had held the Michigan blue sky
law, similar to the Iowa law, to be un-
constitutional. Judge William III. Nc
Henry of the district court of Polk
county has also held the law unconsu-
tutionai.
The law provides for a hearing by
three federal judges when the constitu-
tionality Of state law is involved.
The hearing at Keokuk and the subse :
quent finding Of the court will come In
ample time to permit amendment OF
the Iowa law by the next legislature
in conformity with the courts decision.
should any such amendment be found
necessary.