The Hawaiian gazette., 1917-01-23

MYTH the legislature to convene within less
wv than month now, various Of the issues
Of the past are being revived fof resprescntstion
before theqn house and senate, among others
being the question Of the necessity of or the I'M
necessity OF blue sky law" for Hawaii None
at all conversant with the financial history OF the
Islands for the past ten years but knows that there
has been plenty of goose-pucking here by main
land promoters, hotations having been made that
would have been estopped had there been any law
under which the facts Of the ventures could have
been probed Previous efforts to secure blue
sky" legislation were blocked in the legislature
on two grounds first that the constitutionality Of
the various s'bue sky laws was at issue; secondly
that Hawaii did not need such legislation. The
last objection was probably on the grounds that
the investors OF Hawaii are too wise birds TO be
caught with chat despite the long fist Of practi-
cally fraudulent securities which had absorbed
Island millions.
Before the Legislature concludes its work this
session the matter Of the constitutonality Of the
"blue sky" law will have been determined by the
Supreme Court Of the United States. Probably a
decision win be given before the legislature CON
venes. In the meanwhile, those who advocated
and backed local blue sky" law should prepare
themselves to advocate and back. another bill in
the session to come, in preparedness of the deci-
sion Of the court should it be favorable to the le
gality Of the existing statutes
OF the blue sky laws enacted, the Kansas Act,
the West Virginia law Of 1914 and the Iowa
statute, in addition to those Of Ohio, Michigan and
South Dakota, have been held void by lower
courts; Bills for such laws in Indiana and Colo
RADIO, in 1913, were vetoed; Washington law was
defeated by popular referendum in 1915. Revised
statutes differing materially from the model stat
ute adopted by Michigan and South Dakota have
heo I'D -, e.,,f
Virginia, Kansas and North Dakota, abolishing
licensing Of security vendors. Courts have upheld
the Arkansas, Florida, North Carolina and Ore
gon laws.
The Ohio law as amended in pursuance Of a
State constitutional amendment of 1912 was de-
clared Unconstitutional BY Federal Judges War
rington, Safer and Hoster, February TO- 1916,
sitting at Cincinnati and an injunction prohibiting
its enforcement was given against Attorney Gene
raj Turner and Harry t. Hall. state bank superin-
tendent in three suits ~ ft
Federal Judges Dennison, Sessions and futile
held the new (also the old Michigan law void,
enjoining its enforcement
The South Dakota statute was declared invalid
by Federal Judges Sanborn, T. c. Munger and
Elliott, November ID 1915, who restrained Attor-
ney General Caldwell, Insurance Commissioner
O'Brien and Public Examiner Wingfeld compris-
ing the State securities commission from its en-
forcement, sustaining suit Of the Sioux Falls
Stock Yards Company. and William and Harry
Morley Of Sioux City, Iowa, statesmen Of stock
yards securities. The latter were being prose-
cuted under the penal provisions
In all three cases the Investment Bankers Asso-
citation Of America interviewed 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 trans
actions in securities