Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-10-11
ACTS FOR THREE
MIDDLE WEST STATES
cosson and Wisconsin Attorney Gen.
era Represent Ohio, Michigan and
South Dakota in Suit Attacking Ex-
istins STANDARDIZATION One of
State Rights.
Special TO Times Republican.

eial 10 ASSET IN QslenGlnS the ATTACKS
on the blue SKY laws watch have been
made IN case in the federal court,
nave finished their written Arguments
Inc bIue SKY Jaws OF ONO. Michigan
anu South Dakvla have been attacked
III case enutleu FRANK ". MerrlcA
John ". Haarer anu Grant Fellows W,
y. W. HaIsey & Co, ct al, ana the
Nels Fiber Container Corporation. Inc
case has been appealed by the PLAIN
tlfts to the United States SUPP eme
court In speaking of the necessity
Tor bIue sky legislation Attorney Gen
eral Cuss0n says:
Speaking generally the evil in con-
necuon with the sale OF stocks and
ponds has gradually been increasing
Tor the past twenty years. Commence
ing with beautiful engraved cert.ti-
Gates, representing stock that was
about to pay Ia buIOuS dividends upon
mythica! gold mines in California and
Alaska literary silver mines in Colo
RADIO and visionary oil wells in Texas
and Oklahoma, the evil spread unit!
corporations were being formed in al
most every state in the union for the
express purpose OF issuing worthless
stock TO be sold TO large class of
people thruout the United States, who
by thrift or inheritance had small
sum in cash. but whose knowledge OF
business, made them an easy victim for
men WHO We're skilled IN the art of de-
ception.
4. was not then merely the evils of
so-cailed visionary oil wells, gold mines
and copper mines that had TO be COM
batted, but the sale of worthless stocks
and bonds in innumerable domestic
corporations which had been organized
for the express purpose of defraudins
the public and which We're well calcu-
Lated to deceive even capable business
men by reason of the connection of
prominent men Of the state or COM
munity who for one consideration or
another had permitted the use of their
names in connection with the promo
ton of such corporations.
The corporation laws Of almost
every state in the union are such as to
facilitate the organization Of corpora
tons for the purpose of defraudng the
public, Iowa and one or two other
states excepted.
L IiS ClSis law "! ~" AL sun
stance provides that on the organi-
cation of a corporation in Iowa, the
stock must be paid for in full in cash,
or if property is exchanged for stock
or patent rights or good will. the value
of such property or good will must be
valued by the executive council of our
state. Only one or two other states
however. have laws Of this nature. The
result was that the evil grew until
almost a universal demand was voiced
in every state in the union looking u
a correction OF the evil"
Question in Nutshell.
In arguing for protective blue sky
laws the attorney general, among other
things declares: The whole question
then resolves itself into this; the states
either have or have not the sovereign
power to protect their citizens against
fraud and deception in the sale Of
stocks, bonds and other securities. Il
the states have this power, it can only
be- exercised by some form Of super
vision and control. It can only be
exercised by some form of administra-
tive law. All states now have crimina!
laws prohibiting the obtaining OF prop
erty under false pretenses and fixing
the punishment by term OF impris-
onment in the penitentiary, but these
criminal laws have failed to accomplish
the purpose. 1t Is a mere pretense
to assume that any adequate or sub
stantial relief may be had thru crimi-
nal channels. Some form of instruc-
ton and supervision. some form OF
administrative law alone. will suffice
to accomplish the purpose.
THE genius Of the age is preventive
We are much concerned in the method
of treating smallpox, typhoid. diph-
iberia and numberless contagious and
infectious diseases, but we are intense
ly more concerned in preventive medl-
cine. sanitary hygiene VIII olesome con-
d.it!orls, the elimination Of sInms, SAM
tary drainage and sewers-in short In
every preventive measure which makes
| it impossible for epidemcs to prevail
This court has recognized this
| fundamental principle. 1t was the re-
lation between health and long hours
| Of employment II mines and a, hazard
| Gus occupations which furnished the
basis of the decisions holding valid
statutes limiting the hours of employ
ment which eoncededly are limitation
upon the freedom OF contract. So like
wise, we are interested in prison re-
form but we are more concerned In
| the public schools, the vocational
| schools, Fairgrounds, Y. NJ. G. AS
| wholesome amusements, settlement
| houses the nature Of home conditions
and all the innumerable agencies and
elements which prevent boys and girls
from becoming criminals than we are
| in reforming criminals.
| 1.-The whole spirit and genius of the
age is preventive and corrective rather
than penal and reformatory. Hence, We
| find as a necessary corollary or conse-
| quence this spirit vi the age EXPRESS
| ing itself in social laws and social Gus
toms. Hence, we have as result
| workmen's compensation acts, EN-.
| ployers' liability acts, safety appli-
ance acts, child labor laws, pure foot
| laws Estate and nationally, laws limit.
| ing the hours of labor for women, lin
iting the hours Of labor in hazardous
| occupations, and more general law!
| limiting the hours of labor OF employees
4 and identical in that spirit and pur
pose is to be found the question OF In.
spection laws looking &C the protection
of the people Of the several states from
fraud and deception"
| ----
Lodaemen in Disagreement.