The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1916-04-14
HON. JOHN SHERMAN DARsT.
REVIEW HIS OFFICE. N0Rk
Confined Frsn Last Weeks Issue.

Tor . nunbsr sfysars. Oen O. -.
amount Of 'tAeps oeAae Oo11unAu6k ~
West vir6hH 'tpcHH6i 'sASulst0a -
oss-s.ir SnsSs 1Snsss. = 49,
pss$d. sfyipS ~ Ipsstssee c6tV3&
sioosr suDerv1efea sysr epeA Aoo-
paniss. II - eeurss. = oGananatian
Of this coUDoA3 WO HoAo'nt Akannta
By . Representative - tns Appars-
ment Il waSTofs1ovof0H 01k06 eoon-
pany, instea4 e. bsTIs HnuaAeRny
sound. - dafo>( yis i{H 6Sa- d.
seroes condition. ne nlufoSea Ccnr
missioner feeling ut. - 0woA ~
drst dsty 80 eselssns e Wsst Vfrxinsa.
agreed win ehe eooUany ~ - Dsb-
lish h1s report n ~ veeDd eaRs ears-
Of teefr west vlrtihiS n6aAh6aasfs.
The propositi>a vss aceeptsa. Ana
dnally thee bond co1fTaefs wers t..S<
erred 70 o. souDA esopsay. May ok
he bond helAsrs vscs aiopas<Soa: tkey-
lad faith IN TIE sAflauaG< e xNDany.> and
we're outsv0k1n IN Och es4tlcisu Of
he Insurance coanfss1oAer, 70 all OF
which he could - p6ehht because
Of his sgreeme4k zpl 6s fsets would
not be known today. bad not this CON.
'any been placed In the hands OF q
'eceiver about one year utter <his &C
ion was taken. it, thoussnde OF bond
holders 01tsids q West virRinia
'osing practically I'll they had paid. In.
Needless 70 cd. tAis- eriticism has
urned to praise.
Ansthsr Example.
Many Of you rsne1bss the Standard
lone Company casa IL. - well o.
several similar ceADsaiss. was selling
20 called hone pafchssfhs contracti
q West Virginia. The purchaser paio
$500 per month and was ELIGIBLE "a
loan OF $1,000 after ~ mouti1s. to b.
ised In building q home. A tremsu4
'us business Was being done In WEE,
'irgfnfa among . c1Ass oe citizen,
east able 70 lose money. The In
'urance Commissioasr suspeete6 fr>u6
md although he authority vas donbs
al. nnaily ssenred IN pnwilling con
'ent to sn examination Ut Birminghan
tia-. which confirmed his suspicion.
u fraud A the company refused q
top doing business In the State. II.
representatives. were arrested. An.
he case finally came 60 the Stat.
supreme Court. which found Il nece<
sary 70 hold tat tho Insurance Com
nissioaer had 10 tusisAietsou. How
sver. In tie nssntime. the compan
'ad been Given snch publicity that 1
'oald no longer continue its fraudulen
business in West virginia With an.
iesree OF succsss- A year 81 two later
Is omcers were sent to prison by IN.
federal authorities. ana he eompsn,
haced In . receivers hands.
And 90 I could eoatinus To Give vo,
'xample amer exampls Of the service.
'endered By THE dspartDeut' in IN.
ace OF threats and cridclsm. and In
'eed beyond its ueosssrys scop<
Whether or not such thiaes ere unde,
sken depends . large extsna on th.
nan 1t the head. for these are 1t hes
discretionary scts
~BIvs pky- Department..
This depaFtmeut. CHARGED With IN.
Administration Of the Blue sky LaS
has for its o0Jsct the prevention a
fraud ~ applied to promotions. Il
sims to lock The basnr Goorsr bssore III.
horse V Stolen. fAt1er< than after
wards. By fspu1Fiag the plShs sne
nnanciaf eoadltisns Of an eompanie,
with . few sxceptions) 10 be ami
mitted to ths kudfter. AID his Der
mission resolved hsfefs stock may be
sold
Until . few ysars ego. saIesusn of
fake stocks ceasidsrsd thls S>ate one
Of their richsse ASs0.~'s
Finally. about avvT years ago. the
Auditor begin aeitaf1ng ne question
o. protection and. although such
sctisn We sh3irsoy bsysn6 0e scooe
o. hs official dutiss, expessl many Of
the most vicious frauds.
A . result q ataksnsd public
opinion. the Lsg1slature C 1919 pas
ed Blue SKY" Law. The sAmlnt.
stratios - tie ~ va plscsA 4. The
hands 81 The Auditor. Who has handled
u with practically NO expense to the
ststs- During the nrst year. two hun
dred sDplseeoses rsrs $4,000 spoa.
involving sesek ssd securities IN The
amount ef tweafy-ssvsa miiIion SosIars
sne neenss wos rufused In many 49,.
"Fsks prs0sessas.s
rsks n1n1ns ssapaasss 81 ~
eonDaniss w1tA f1~R ss0ss .sever11
fest un1w vsssP vsro fsresl 8, I've
tAis sesss vi6S bsssA GRs1r IL 30
ass q nis ~. n ~ rfg5lly g
fsrcsd- ed = 1914. oosln u DrsSy.
. forefgu pro0oeeP. w. ~ ben
erressse ~ q sneoo1 vsoass6pa IN
eosssctSea Vim - 80 e. ~ min
ing stock. earrie1 HI 80 % t.
United States Dfstf5ct Court vh,cs
oeefdsG uas ~ ~ vas- u.oousufv.
tionai- The Auditor gavs sotics Of his
istsntsos 70 sDDe1l ~ @ Hs Lsxse
iature convened before TIE sud u ths
time to take such appeal. 80 10 ovSe,
That the State might ~ saved the
great expense OF N sppeaa 20 the
United States Supreme Court. be ore
pared . new Iav which omitted thu
objectionsi natter Dohtsl on ~ tn
court. Bot vh5es vAs 6seiesel 70 -.
eompIish ~ Other vays tie sane Dur.
pose ~ the old lav. At the same
time. Il made Important sxenptIons-
90 a. 10 Po&u<a A a -s~t--- a.. a