Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1916-11-18

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| gon, South Carolina, South Dakota,
Tennessee, Texas, Vermont, West
Virginia and Wisconsin.
In addressing the supreme court,
the National association Of Attorney
Generals said the legislation was in
response TO the increased flotation of
fraudulent securities during the last
20 years. causing loss OF 100000
600 annually. The association asked
the court TO uphold the legislation.
particularly as meteroic value of
stock due to the war has given new
impetus TO issues, and purchase by
the public of fraudulent securities.
OF the blue sky laws enacted, the
Kansas act, he West Virginia law OF
I19l4 and the Iowa statute. in addi-
tion to those of Ohio, Michigan and
South Dakota, have been held void by
lower courts. Bills for such laws in
Indiana and Colorado, In 1918, were
vetoed. a Washington law was de-
feated by popular referendum in
l1915. Revised statutes differing ma
terially from the model statute adopt
ed by Michigan and South Dakota
have been enacted in Iowa, Oregon,
Wisconsin, West Virginia, Kansas
and North Dakota, abolishing licens-
ing of security vendors. Courts have
upheld the Arkansas, Florida North
Carolina and Oregon laws.
The Ohio law as amended in pur-
suance OF a state constitutional
amendment Of 1912. was declared
unconstitutional by Federal Judges
Warrington, Safer and Hollister, Feb.
10. 1915, sitting at Cincinnati, and
an injunction prohibiting it's enforce
ment was given against Attorney
General Turned and Harry T. Hall.
state bank superintendent. in three
suits, brought by the Geiger-Jones
Co., security underwriters of Canton
o.; Don c. Coultrap, its sales agent,
and william r. Rose, security for the
Richard Auto Manufacturing Co, a
West Virginia corporation. Rose was
convicted under the penal sections
and was awaiting sentence.
Federal Judges Denniscn, Sessins
and Tuttel held the new (also the
old Michigan law void enjoining its
enforcement, in suits against Attor-
ney General Grant Fellows and the
state treasurer and banking commits
sioner, constituting the Michigan
Securities Commission, plaintiffs
were II. w Halsey g. Co.. and the
Continental & Commercial Trsut q
Savings bank of Chicago; Lee, Hig
ginson & Co., OF Boston; Remick,
Hodges & Co, of New York; Otis d
Co.: the Weis Fibre Container Co.,
and other security dealers and cor
porations affected
The South Dakota statute was de
clared invalid by Federal Judges San
born. 7. c, Munger and Elliott, Nov
ember is. 1915, who restrained At
torney General Caldwell, Insurance
commissioner O'Brien and Public
Examiner WlngAeld, comprising the
state securities commission from It's
enforcement, sustaining suit of the
Sioux Falls Stock Yard Co, and VII
liam and Harry Morley of Sioux City,
la. statesmen OF stock yards securi-
ties. The latter were being prose
cuted under the penal provisions.
In all three cases the Investment
Bankers association OF America in
teIvened as friend of the court
IN arguments before the supreme
court by former Attorney General
Wickersham and Robert r. Reed. its
counsel, attacking the laws as inter
| fering with interstate commerce in
normal transactions in securities.