The Topeka state journal., 1919-12-27
Attorney General Hopkins in
Plea Before District Court.
Protects Rights of Man Who
Would Put Money in a Hotel.
ONE HOTEL ENOUGH FOR TOPEKA
Hopkins Says Two Big New
HOsteIries Would Not Pay.
FavOrs Hotel Kansan-RevieWs
Renker "PrOmOtiOno Plan.

Rights of the small investor to be
protected by the state charter board
from investing in dual propositions.
one of which. it is claimed, must fail
to pay a proper dividend, were argued
today in district court by Richard
Hopkins, attorney general before
Judges George H. Whitcomb and
James A. Mcclure.
Arguments were, based on testimony
introduced before the two Shawnee
county judges early in the week in
the petition of the Renker Hotel COM
pany for an injunction against the ac-
ton of the state charter board in re-
fusing to permit that company to sell
100000 in stock for the erection of a
Following arguments by attorneys this
afternoon the judges took the case
under adVisement.
Hopkins in his argument pointed
to the fact that the North American
Hotel company, or the Kansas Hotel
company, already had raised thou
sands of dollars for the erection of a
hotel at Ninth and Kansas avenue.
He also directed the attention of the
judges to the fact that several thou
sands of dollars had been spent in re-
moving buildings and making excava-
Continuing he reiterated the blunt
fact that the hotel business in Topeka
at its best cannot support more than
one hotel of the magnitude of the
proposed Hotel kansan at Ninth or
the Renker hotel at Tenth. Glat one
such hotel is necessary, he admitted.
Board Created for Protection.
That the investors in one of the
two hotels must fail to realize proper
ly on their investments in the event
two hotels should be erected is be-
yond dispute, Hopkins asserted. That
the state charter board as an institu-
ton created by the state as a protec-
ton to investors has an absolute right
to protect the small investors is an
other fact beyond dispute, Hopkins
told the judges.
!. They would resort back to the first
principles of life, a survival of the
fittest,'' said Hopkins. ''WeH and
good. if no one excepting those float
ing the propositions were financially
interested"
Continuing, Hopkins pointed out
that the plan for raising the money
necessary for the erection of the hotel
was based upon collecting money
from small investors, the Santa Fe
shop man. the widow. the clerk. the
small business men and other per-
sons with small sums at their COM
time. It was for the purpose of pro-
tecting investors of this description
from p1unging their money into such
an investment when money for a like
proposition had been raised and when
in the judgment of the charter board
one of two propositions must fail TO
realize properly on the investment
that the state charter board refused
the Renker Hotel company permit to
issue stock.
Promoters to Get 20 Per Cent.
Directing the attention of testimony
introduced the first of the week. Hop
kins pointed out that he understood
that the promoters of the Renker hotel
proposition contemplated getting 20
per cent of 100000 they planned to
raise That, he stated, would be
taking 100000 out of the s500.00O
right on the jump. Estimating 1t for
the small investor he stated that It
| would mean the little fellow would
start in the hotel business with $50
of his $10O investment gore e.
Continuing, Hopkins pointed to the
high cost of materials, emphasized
again the cutting down of the enor-
nous profits in the hotel business with
the disappearance of the mahogany
bar, the poker game kitty" and other
old-time hotel methods of raising
revenue.
/ The Renker people claim that the
state charter board has no right to
! interfere in such propositions, point
I ing out that it is the right of the
! investors to do as they please