The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-03-12
BLUE SKY LAW
TO BE TESTED
BY BISMARCKER
Claude NJ. ROssen Attacks Valid
ity of Statute in Asking
Habeas Corpus Writ
SELLING CERTIFICATES
Consumers United Store Co.
Plan Applied to Distribution
of Ignite Coal

This promises to be an lmoortant
week in the young life of North Dako.
ta's blue sky law. Under orders from
the blue sky commission, officers OF
the Equity Exchange of St. Paul, the
Equity Cooperative Packing Co. OF
Fargo and the Northern Packing Co.
of Grand Forks will appear before
the banking board Thursday afternoon
to explain their failure to comply VITA
all the provisions of the act. At
the same hour today Attorney Cen
eral LANCER will appear in supreme
court TO defend an action brought by
Claude NJ. Rosson of Bismarck,
through his attorney, former Associ-
ate Justice T.. 7. Burke, questioning
the scope of this nuct-exercised sta
tute. g.,
Claude Rosson, we'll known Bis
marck man, was arrested March on
IL charge of selling buyers certifi'
Gates" Of the Lignite Consumers
Mining Co. in violation of the blue
sky law of North Dakota. March IL
Mr. Rosson applied to Judge Nuessle
in district court for writ Of habeas
corpus, which was refused. Yester-
day the action was appealed to the
supreme court and by stipulation was
set for argument today.
Promises Coal Cheap. /
The Iignite Consumers Mining Co.
seems to nave taken leaf out OF the
Consumers United Store Co.'S book.
The buyers certificates" sold at
500 the share are to be used under
h1 ~ iv1t n0
upon the certificate to build up fund
be opened at Ignite. The company
agrees as soon as 100000 worth OF
certificates are disposed of to open
IT'S mine and to begin the production
nf coal which is to be sold to certifi-
cate-holders at a price not to exceed
81 30 per ton I. o. b. cars at HavelOck.
The coal may be sold for as much less
under $3.50 as may be consisten, with
the successful operation OF the mine, Z,
but It ia not to cost more. Under
these terms the price to Bismarck
consumers would be $2.75 to SO tho
ton. - H.. ..re sIFgS
No certificate.holder may receive,
more than rs tons IN any one fuel
year. Should a certificate holder la *
ready money, His coal may be charg I'd
up against his certificate to the
amount Of 800, said certificate being
deposited with the company as secur'
ity. The certificate holder is given
a years time for redemption. Ninety
per cent OF all money paid for certi-
ficates up to 100000 is to 60 into the
first mine at HavelOck. Any sum
which may be subscribed over $780,
600 may be used at the discretion of
the directors in opening new mines.
No Names Given.
Rosson's is the only name connect
ed with the company which appears in
these proceedings. None of the di.
rector's or officers namesNis given on
the copy of the certificate which is
made a part of the court record. The
statute assailed in the habeas corpus
proceeding Is chapter 81 of the session
laws of 1915. Should it be found not
to apply to such stockselling business
as Rosson was engaged in, many other
companies Of a similar nature, un'
doubtedly including the Consumers
United Stores Co., will also be ex-
empted from supervision at the hands
of the blue sky commission. ~.
The home office of the Ignite
Consumers Mining Co. is given as
New England. 1t purposes to open
its mine at Havelock not later than
October I, 1919. .@':T' ''.,'