The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-01-24
TEUTONS RETREAT own BOOST FUND
No More Promoting Schemes
without "GOOds" in Kansas.
Other Measures Introduced in
Lower House Today.

The house Judiciary committee has
presented a bill which will curb the
expenditure of investors money for
promotion purposes by corporations
which come under the blue sky law.
The bill compels incorporators to pro-
vide promotion funds. This money
may later be paid from earnings But
wild cat promoters must display an
honest to goodness faith in their pro-
ject by promoting the company at
their own expense.
One of the favorite indoor sports in
Kansas at this time is the promotion
of companies under the blue sky law.
The present law permits the use of
as much as 20 per cent of a com
panys capital stock for promotion
purposes Usually the state charter
board restricts the promotion fund to
Is per cent Even at that figure, tho,
handsome returns have been made by
men engaged in promotion of stock
selling companies.
Passage OF the bill by the house
judiciary committee compels promot-
ers to provide funds for promotion
purposes. The money to be used for
this purpose must be deposited in a
separate fund and made available
when charter is granted. The money
may be advanced in the form of a
loan to the company. But of course
the company cannot repay the loan if
| it doesn't earn money. So the burden
falls upon the incorporators. If the
project fails - goodbye promotion
funds
THE bill is offered as a cure for the
evil existing under the present blue
sky law" said Frank l. Martin OF
Reno, chairman of the house judiciary
committee 1T simply places the bur-
I a -Te-1-
pan1es operating under the blue sky
law. rather than taking the money out
of the pockets of innocent investors
Amend And-Pass Law.
Newspapers may exchange advertis-
ing space for railroad transportation
| if a bill in the house becomes a law
| The bill is known as House Bill No
| 379 and is an amendment to the pres
ent anti-paSS law 1t permits a news
paper to accept transportation from a
railroad in Kansas by exchanging ad-
vertising space on a basis equal to the
amount OF such mileage or transpor-
| tatiOn.
Help Mutual Companies.
Neiswender of Shawnee county has
bill in the house hopper permitting
mutual telephone companies to rent
| phones to persons who are not stock
| holders in the company. The provi-
! SIGN is made by Neiswender without
bringing the mutuals under the juris-
diction and supervision of the public
utilities commission. Under the pres
ent law, mutual telephone companies
may grant service only to stockhold-
ers. The house bill enables these COM
panies to grant service to patrons who
shall pay proportionate rate of the
expense of operation and upkeep.
Free City Kindergartens.
johnson of Brown county presented
! house bill providing for free kinder
gartens for all children between the
ages of 4 and years. Representative
Day offered another amendment to
the school laws. providing that mu-
nicipal high schools may adopt courses
IN agriculture.
Another Cigarette Bill.
Representative Graham of Jackson
county introduced a bill prohibiting
the sale or advertising of cigarettes OF
materials used in cigarette making
| tCoDtinueJ Oh Page Two.l