Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-03-09
BANKS AND BANKING
Hot Time at Hearing Over Certain
Advertising in Maine Newspapers

Bank commissioner Irving .. SeT-
non didn't realize what hornets nest
he stirred up when he had introduced
bill into the Senate bill known as 24S
and which provides that lit is unlawful
for any newspaper, periodical or maya
zine published in any city or town in
this State to publish, print or repro
duce any advertisement wherein there
shall be offered for sale, directly or
indirectly, any security, unless the in
dividual partnership or corporation
placing such advertisement shall be a
registered dealer, under penalty of $50
for such insertion or advertisement to
be recovered upon complaint"
Mr.. Vernon appearer in favor of the
bill and said he drew it himself, and a
dozen publishers appeared against the
measure and the hearing was especially
warm at times.
Hon. j. =. Bass of the Bangor Com
mercial launched an attack at Mr.. Yer
non that nearly bowled him off his feet
and before he had finished. at least the
bank examiner knew the feeling Of one
Maine publisher
MIR. Vernon in opening said the blame
If any for the bill should be placed
upon his own shoulders that it was his
department that drafted the bill and
he was willing to shoulder the respon-
slbility. He took up the matter of the
due sky" law, so called enacted some
years ago. He said he didn't suppose
there would be great deal of opposi-
tlon to this bill. but after looking
around the room and seeing the repre-
sentatives of the biggest newspapers
IN Maine he felt convinced there would
be much opposition and he offered an
amendment to the law allowing the
publishers to publish the ad. one time
ana then after, notice by the banking
department that the ad. should not be
inserted again, it was to be withdrawn.
Testimony given brought out the fact
that at no time had the bank exam
lner ever asked cooperation of The
newspapers in this matter but that II
was complied with
Mr.. Vernon admitted that Boston and
out-of-the-State papers would continue to
come into Maine containing these same
kind of ads and he believed he was help
ing to protect the public from the men
who were taking money away from them
through the kind of advertisements in
.erted.
W. b. Reed, business manager of the
Bangor Daily News, was the first speak,
er for the opponents and he said: II con.
slider this bill very drastic measure
and | do not think this heavy burden
should be placed on the newspa pers Ev-
cry publisher in Maine would object to it,
The present Blue Sky law | think has
kept thousands OF dollars worth of bust
ness from Maine papers that would have
come from reliable firms to the publica-
tions in the State if it were not necessary
for them to register in order to do bust
ness here. 1t seems sometimes that there
are those who would like to see Maine
fenced in so that no one from the outside
could do business here unless they were
heavily taxed Suppose there was an
| advertisement sent to a paper in Maine
from an out-of-the-Sta advertising con-
cern-say half a page ad.-signed by four
reliable brokers who were all registered
in Maine but one. What would you do
under this law if it were enacted? You
would have to drop out the entire ad."
Mr. Reed said this meant loss in bust
ness and the law was drastic and placed
William r. Pattangall of Augusta, rep
resenting the Maine Press Association,
made the argument in their favor. He
said the law was one which naturally the
newspapers would oppose for good and
practical reasons. He said there were
few papers in Maine that made more
than bare living and not one is large
r.
and must Of necessity depend upon it's
advertising. and that they depend upon
out-of-the-State advertising because the
local advertisements are never large
enough for them to do business on en-
tirely, and that but a small revenue could
be expected from the local dealer. He
said there wasn't any city like Boston
near by where the newspapers could de-
pend entirely upon local business and it's
foreign advertising business was a big
asset He said this -of-the-State or
foreign advertising pays big because the
ads seldom run many issues and the re-
Enumeration is large. He had found tn
his life that it takes more than laws to
keep men from buying stocks whether
they see the ad in Maine paper or III
an out of the State paper.
He said there were two distinct prop
ositions, the selling Of gold bricks ana
the newspaper advertising OF securl-
ties For 10 years he had been interest
ed IN the newspa per business, ne salu'
and said il the newspapers could not
receive this adv ertisement simply De-
cause a. firm was not registered, II
would men a great financial loss to-
which they could not afford to lose To-
day. He said Maine newspapers were
very careful ard go as far to protect
their reading public as any class OF
papers and their selection of securl-
ty investment a6s. is also very careful
ly looked over He said he could see no
good in this legislation excepting to
shut out some good money from Maine.
Senator Butler of Knox appeared for
tie Rockland Courier-Gazette which
opposed the measure and said You
can't pass laws that will not permit
fools to be victimized," and that he
was much opposed to the passage of
any such measure.
Harry NJ Bigelow, editor Of the
Portland Daily and Sunday Press, said
TO him the whole thing appeared as IL
the bank commissioner were discrim-
mating against the State of Maine pa
pers and in favor Of the Boston papers.
He said no reputable paper would
20 Sfy1o that I1Q n