The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-08-13
Toll of Get-Rich- Quick Firms
Is Greatly Reduced.
Annual Loss Drops From
S4,O0O,O00 to 100000.
ALL THRU UNCLE SAM NOW
Mail Order Business Cannot Be
Regulated.
Convention to Eight Fake Pro-
motion Plans.

Kansas annual toll to get-rich quick
concerns has been reduced from S4,-
100000 to less than 100000, accord
ing to a statement today by S. T. Sea-
ton, in charge of the blue sky depart
ment in the state bank commissioners
office. Virtually the only fraud now
practiced on investing Kansans,
Seaton states, is through mail order
concerns which cannot be rea ched by
the state law.
In the old and palmy days OF gold
brick speculation, Kansas was the
haven of rest for every salesman of
worthless stocks and bonds IL the
country. There are few prosperous,
well established farmers and business
men in Kansas who have not some
where stored a block of stock iE
their teeth cutting days in the bust
ness world. Hundreds of Kansas
widows have invested their small in
heritance in projects which never re
turned a dollar to the investor. These
little blocks of stock in the widows 8
strong boxes represent millions of
tears and days of want ana .srivation,
in many cases.
Free From Trouble Now.
Now Kansas is virtually clear and
free from the worthless stock selling
projects, according to Seaton. Yet in
the four years the blue sky law has
been on the statute books, there has
been but one criminal prosecution un-
der the law. That was in Atchison
county two years ago when one of the
agents for the famous MOunDay pro-
ject was prosecuted for failing 20 show
proper respect for the state law. The
MounDays and other stock selling
promoters were prosecuted through
the federal courts
Conservative estimates made before
the enactment of the blue sky law
were to the effect that the state was
annually victinized in an amount
equal to about fouH million dollars
Now, Seaton believes the individual
losses in the entire state through
fraudulent investments is less than
500, 900 a year.
Few Complaints. y
Except in few instances where
sales are made through mail order
publications, which we cannot reach,
we rarely receive a complaint" said
Seaton. when a new company en-
ters the state, we naturally receive a
number of letters asking whether the
concern carries a permit from the blue
sky department This condition has
fortified the larger, more reputable
stock selling concerns and has made
easier their work in this state. But
the company without a permit has
rough shedding.
eff it We're possible to get a detailed
account of all worthless stock invest
ments during the last year, I really
believe the amount would be less than
100000. On the other hand, I am
convinced that the states annual losses
to get-rich-quick concerns before the
passage of the blue sky act was nearly
four million dollars
At National Convention
The question of fighting fake pro-
motion companies through federal en-
actment. will be considered at the ma
tional blue sky meeting in Topeka this
fall. 1t is probable that as a result
of the Topeka conference of blue sky
officers, several federal laws will be
proposed.
present blue sky law in the state L
believe we could shortly wipe out ev-
cry dollar of loss by Kansas investors
said Seaton.