Daily Kennebec journal., 1918-01-04

serious injury TO business. We cannot
en-, phasize too strongly the wisdom OF
buying Liberty Bonds on the installmen,
pIan and paving for them out OF current
and future savings.
"Biue Sky Law"
"At the present time there are ls6 dear
ers and o23 statesmen or agents hcenseI
under the provisions Of this act The
dealer in securities pays registration
fee of SIS and s. for the license Of each
salesman or agent. The annual renewal
fee for dealers and statesmen Is % Dur
ing the past year these fees amounted TO
sSO42. The statutes provide that such fees
shall be paid over to the State treasurer,
and no appropriation was made by the
last legislature for the enforcement OF
the provisions of this act. The purpose
OF this act was TO prevent the sale OF
worthless securities to that class OF IN
yestors who are so often the victims OF
promoters dealing in wild
cat schemes. The sale Of such secur!-
ties often means loss not only to the in
vestor. but also to the banking instftu-
tions which might otherwise receive such
funds on deposit.
Funds should be available for more
thorough investigation and to give great
er publicity to the nature of the dealers
license. In the absence Of such publicity,
the uniformed investor easily may be
led to believe that the banking cepart-
ment. in issuing dealers license, thereby
approves of the securities handled by
unc iS fa :
case. The commissioner cannot pass up
on the desirability Of such securities for
investment purposes. He passed upon the
good repute Of the dealer and decides
whether all pertinent facts have been dis
closed, or if fraudulent and misleading
statements have been made. In the lat
ter event the commissioner may Prohibit
the sale of such securities or revoke the
dealers license.
In placing promoters and dealers in
speculative securities under the super
vision of the banking department, the
Blue Sky Law has given them prestige
that they have not previously enjoyed
But since they have been placed under
the banking department. 1t would seem
imperative that they should receive most
careful supervision. and that at least a
part of the license fees received under
this act should be made available for the
following purposes:
'tirst-For the more thorough inv.sti-
cation OF applications for registration
= "Second-To enable the department to
Investigate the financial statements, cir
cu,ars and advertisements of licensed
dealers as often and in al such cases as
may seem advisable (the statute provides
!uf such an examination III order that the
department may ascertain whether the
offerings are honestly made and disclose
pertinent facts sufficient 70 enah:c pur-
chasers 20 form an opinion as to ll1e ma
ture and value of the securities offered !
'ThirdTo give publicity to the provi-
sions Of the law and provide for the cir
culation Of printed lists Of licensed deal
"rs among those who are lilsel.- to ccme
III contact with unlicensed dealers
Verfication Of Savings Deposits
During the past year the banking de-
partinent has verified the savings ac-
counts Of Is trust companies and
branches and Of eight savings banks.
The department actually verified 800 of
the total 69.5c3 savings accounts Of the
banks visited. The average percentage
Of accounts verified vas 33 i-3 per cent.
which is three and one-half per cent
greater than that Of the preceding year Il
funds permitted, the ucrk could be made
mitch more effective by following up the
accounts Of depositOr5 who failed to
make any returns to the department
Loan Agencies and Industrial Banks
The legislature of 1917 passed a much
needed act regulating the business Of
making small loans The act provides
that no person, o-partnership or cor
porauon shall engage in the business OF
making any loan of money, credit goods
or chooses in action. in the amount or to
the value of $500. or less. whether secured
Or unsecured. and charges or receive a
greater rate Of interest than T. per cent.
per annum without first obtaining a Ii
cense from the bank commissioner The
act applies to pawn brokers as well as
small loan agents.
Applicants for a license are required
to pay an annual license fee of $50 and flIe
bond in the sum Of s100O with one or
more sureties to be approved by the com
missioner. Upon receipt OF the required
fec and satisfactory bond, the com
missioner is requested to issue a loan
agency license. He may. however in his
discretion. upon notice to the licensee.
ana opportunity to be heard. revoke such
license i satisfied that the l.censee has
violated any provision Of this act or any
existing statute
Such licensees are authorized :, mako
ioahs OF 800 or less a;d charge interest
thereon at rate not 10 exceed there an
ohe-haf per centum Per month 1t sha,
maze 10 other charge fci. conn.issio or
expenses except lawful recording fees
Whle a. frst thought such a rate may
seem excessive it Should De borne in mind
that the loans are small ard usually for Il
short period OF time
Eighteen license have bee, jssned
since the act Went into effect July :. 1917
The statute provides for the appointment
OF loan agency examiner. whose SAL
AIRY and travelling expenses shall pe
p'ld out a The Loan Agency fees re-
'elved by the department IS the fees
coiected have been Insufficient 10 provide
ior such an examiner. the work has thus
Iar oeen carried along in connectjon urith
'he regular work Of the department
ne iast Legislature also passed an act