Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1919-03-13
STATE Blue SKY.
LAW IS TESTED
in COURT ACTION
Important Case to Be Heard
While Banking Board Ham
dies Investigation.

Bismarck, N. D., March 12-(Spe-
ciaD D-This promises to be an in-
portant day in the young life OF
North Dakota's blue sky law. Under
orders from the blue sky commis-
sion, officers of the Equity exchange
of st. Paul, the Equity Cooperative
Packing company of Fargo and the
Northern Packing company of Grand
Forks will appear before the banking.
board this afternoon to explain Their
failure to comply with all the provis-
ions of the act. At about the same
time Attorney General LANCER will
appear IT. supreme court to defend
an action brought by Claude NJ. Ros-
son of Bismarck, shru his attorney,
former Associate Justice e. T. Burke.
questioning the scope of this much
exercised statute.
Claude Rosson, we'll known Bis
marck man, was arrested March
on charge OF selling buyers GER
tificates" IT the Ignite Consumers
Mining company in violation of the
blue sky law of North Dakota. On
March IL Mr.. Rossen applied 20
Judge Nuessle in district court for
a write of habeas corpus, which was
refused. Yesterday the action was
appealed to the supreme court and
by stipulation was set for argument
today.
Promises Coal Chcan
The Ignite Consumers Mining
company seems to have taken leaf
out of the Consumers United Store
company's book. The buyers cer-
tificates," sold at 500 the share are
to be used under the term of the
agreement printed upon the certifi-
cate to build up fund of 100000,
with which a mine will be opened
at Ignite. The company agrees as
soon as 100000 worth of certifi-
Gates are disposed Of to open its
mine and to begin the production OF
coal which is to be sold to certificate
holders at price not to exceed $1.5G
i per ton t: o. b: cars at 'Havelock. The
coal may be sold for as much less
than S1.50 as may be consistent with
the successful operation of the mine.
but it is not to cost more. Under
these terms the price to Bismarck
consumers would be $2.75 to SO the
ton.
No certificate holder may receive
more than Is tons in any one fuel
year. Should a certificate holder lack
ready money, his coal may be charg-
ed up against his certificate to the
amount Of 800. said certificate be-
ing deposited with the company as
security. The certificate holder is
given years time for redemption.
Ninety per cent of all money paid for
certificates up to 100000 is to go.
into the first mine at Havelock. Any
sum which may be subscribed over
100000 may be used at the discre-
ton of the directors in opening new
mines:
Rosson's is the only name connect
ed with the company which appears,
in these proceedings. None Of the
directors or officers names is given
on the copy of the certificate which
is made part of the court record.
The statute assailed in the habeas
corpus proceedings apply to such
stock selling business as Rossou was
engaged in, many other companies
of similar nature, undoubtedly in
Guiding the Consumers United Stores
company, will also be exempted from
supervision at the hands of the blue
sky commission.
The home office of the Ignite
Consumers Mining company is Civ
en- as New England. It purposes to
open its mine at Havelock not later
than Oct. l, 1919: