The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1917-04-26
THE PR0TRACTED HEARING
OF CANTON CONCERN
is ENDED
IT BUILT OHIO INDUSTRIES
INVESTIGATION BY THE GOVERN
OR AND SUPERINTENDENT OF
BANKS OF THE GEIoERJoNEs
CO. RESULTED IN THEIR BE-
ING o. K.'ED UNDER "BLUE SKY
LAW"

Law
Columbus, April 16.-Gov. Cox and
state Banking Supt. Berg Monday
granted the Geiger-Jones Co. OF
Canton a license under the state "blut
sky law
Beginning May 1, the company will
resume the sale of industrial securi
ties in Ohio.
The meat of Cox's and Berg's rul
ing is:
The soIVency, good business repute
legitimacy and legality Of the Geiger
Jones Co. have been proved beyond
the shadow of doubt.
Sixteen thousand Ohio workmen are
assured that the means of earning
their livelihood will not be disturbed
An investment of more than $780,.
10000, netting the 1900 Geiger.
Jones clients involved an annual in,
come of between $9,5oo,ooo and $1o,.
10000, will not be imperiIed.
Bankers and merchants will con.
tinue handling nearly $4,000, 900, the
total which Geiger-Jones payroIIs ap.
proximate each year.
Cox's and Berg's decision is all the
more a sweeping and conclusive vic,
tory for the Geiger-Jones Co. when
viewed in the light that no financial
institution in the United States has
ever been subjected to such pitiless
and searching investigation.
Criticism on three points accom-.
panied it: (1) the payment of un.
earned dividends on stocks; (2) the
appreciation of plant accounts to
build up surpluses; (3) misstatements
in literature. These observations
however, apply to practically every
like institution in the state.
Considering testimony drawn out al
the hearing, it seems apparent that
their conclusion is an appreciation OF
the honest and constructive policy
that has marked the entire career OF
the Geiger-Jones Co. It seems to
commend the principle of the com
pany always to safeguard it's clients
and never to run away when an in,
stitution seems to totter financially.
cox-6ere Stand Broad.
In view of what developed at the
hearings, which continued from Feb
% to April 4, Cox and Berg evidently
differentiated between the minor mis-
takes and inadvertence that crept into
Geiger-Jones transactions, and the
strict adherence to fundamental prin'
ciples that has made the Canton con
Germ stand unique among securities
houses in the way 1t has protected its
stockholders.
Evidently Cox and Berg viewed the
situation presented by the Geiger.
Jones Co. through broad, business ex
perience. They realized that in such
vast business as the company tran
sacts, naturally some errors would
creep in. They considered the proud
boast Of the Geiger7yones Co., sub
stantiated by absolute proof, that nc
one of their 1900 clients has ever
lost a dollar-a claim that probably
no other investment house in Ohio car
make.
Evidence adduced at the hearings
which continued from time to time
before Cox, Berg and McGhee, from
Feb. 2S to April 4, failed to bring tt
light one single instance Of where {
client Of the Geiger-Jones Co. or thu
purchaser Of one share Of stock In in
dustries Il helped finance had com
planned.
Not one investor ever lost a dolIaI
Of principal was the statement made
by II. M. GeIger, president Of the com
pany, and it stood like GibraIta
against all assaults. Every institution
whose securities he sold In the opel
market Is a going concern today AM
Is earning money, was oeiger's war
ranted boast.
Back on the sidelines were compet
ing securities companies or their al
torneys or corporations in competition
with the Geiger-Jones industries. They
and not disgruntled clients, precipi
tated the attacks on the Geiger-Jone
Co. and the resultant investigations.
How Clients Were Protected.
Ample proof was supplied by tn
Geiger-Jones Co. that never had
advanced funds for paying unearne
dividends without faithfully apprisin
stockholders Of the true facts. In a
least one instance it was shown tina
the Geiger-Jones Co. had guarantee
returns on the stock of certain CON
pany for a period of two years.
or very material aid to the Geigel
Jones Co. in enlarging on its right t
"blue sky" law license was H. N
Geiger's explanation Of how it safe
guarded the interests of its clients.
Where most security companie
were content to conclude their RI
sponsibility with the sale of stocl
the Geiger-Jones Co. maintained
ceaseless vigil on companies it undel
look to finance, Geiger pointed oHt.
Representation on boards of dire'
1 ,ru 1uoS rrovfdAA Advice aa IN nIlaT