New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1918-12-27
KANSAS BLUE SKY" LAW
"UNWARRANTED SUPERVl-
SION" SAYS PROSECUTOR
Santa Fe, Dec. "a.

OF the banker dSSOCidlloH cCCitiy
held in this city, very strong rcsolu-
tons were introduced asking the
passage of a duplicate of the Kansas
"Blue Sky" law, to protect people
from the wiles of the p~rospector.
They were passed very quickly. Per-
haps a little in regard to these laws
may be of interest.
The first law passed in that direc-
ton was by Kansas in 1911, and was
ito protect the %credulous investor
, against the sales Of worthless stocks
and bonds" 1t wa taken up and
passed by other states through the
fundamentally of the Investment
Bankers Association. not the regular
bankers, and it was originated and
the money to work it through fur
nished by that association.
It was stated in an article CIV
ing the decision Of the United States
! Supreme Court that il had been tried
! out in inanv courts, and in "all had
been held unconstitutional by lower
federal courts and their enforcement
cnioined," so il was a great surprise
! when the "court of last resort" re-
versed all these decisions OF the
lower courts and held these laws TO
be valid. Possibly the court did not
understand the matter as thorough
" as the lower courts
In Our Third State Legislature a
blue sky" bill was introduced con
tanning a proviso that it should not
apply to coal mining companies, who
were thought to be above any 'sin-
full games" but the lust for gain
seems to have hit them too, jndg ne
from the large amount OF slate and
| stone IN our coal this winter, SO that
If a "blue sky" law is enacted At
this session it should iAclude the
coal miner.
But, Joking aside. let us see how
the law is considered by others who
arc not parties to the discussion IN
the matter. Here is a letter writ
ten BY Mr.. Galcn Nichols, for two
terms county attorney of Shawnee
county. Kansas. containing Topeka,
the capital and about largest city in the
state, written to a party in answer
to an inquiry as to this law:
From a long residence in Kansas
and with a familiarity with its laws
and industries, much OF t gained
while acting as prosecuting attorney
for one of its most ~populons oun
ties. I am of the opinion that what
is generally known as the billie SKY
law" is not for the best interest OF
the whole people of the state.
81 car readily see how it may be
used for the immediate advantage OF
the banking interests. but IT certain
lv will dwarf those financial irstitu-
tons having for their object the in
ves'mcnt of small savings.
THE conception OF the law may
have been honest: that is. the pro-
lection Ct the small saver against
"wi,dcat companies :" but as the de-
, cision Of what are good and what
are bad companies is left to one
man. the result may be. and often
Is. unfair. AT the best, the law saws
to he investor. "Yon have not sense
enough to know what to do with
Your money: we viii furnish Won a
man to tell you how to invest it."
, There :, no certainty that this man
will know any more about the good
intentions OF the investment com
panv than the average investor, OF
necessity he is a politician, and hu-
man nature viii have as wide lati-
tude for his action as in any other
line Of business when mixed with
politics,
AT the best, the state officer has
the authority OF a car. his is the
Bank Commissioner. The law re-
quircs him to be a banker. and be.
cause his interests are in favor of
banks and against investment of
money in any other financial enter
prises, he knows his master ana
, serves him.
"The average citizen is not free to
act. He is left with only one place
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