Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-03-09
STOCK DEALS
FAIL TO BRING
INDICTMENTS
Jury Sees Need of Blue Sky
Law, but Declines to Re
turn True Bills.

After summoning many witnesses be-
fore the grand jury to investigate the
sale Of stocks of alleged questionable
value, the Marion county grand jury to-
day returned a special report to Judge
James Collins of the criminal court.
The grand jury did not return any in
dietments on the subject under investiga-
ton but recommended that blue sky"
law be passed by the next session of the
legislature.
This report of the grand jury is said
to be the result of an Investigation of
the alleged activities Of the firm Of
w. E. Young & Co. OF this city.
The Young Company. with offices in
the K. OF T. building, was under inves-
tigation by the grand jury following its
Company.
WOMAN HAS
YOUNG ARRESTED.
Mrs. Clara Morris, 2440 Bellefontaine
street, caused the arrest Of Young and
a salesman, Charles R. Ellis. on charges
of false pretense. She charged that Ell
lis falsely represented to her that the
stock was listed on stock exchanges and
that a banker Of Indianapolis had pur-
chased d large block Of 1t.
The day following the arrest Of young
Mrs. Morris was repaid the entire
amount Of money she had put into the
company. She claims she refused to sign
a written statement to the effect that her
dealings with W. E. Young & Co. had
been satisfactory.
Edmund c. Mathews, 735 East Morris
street, petitioned Judge Ewbanks In cir
cult court to appoint a receiver without
notice for the Young firm, alleging In his
petition that through misrepresenta-
ton Of the company he was induced to
purchase and pay cash for fifty shares
OF stock OF the National Atlantic PEI
troleum company ct the rate of 50 a
share He alleged that Young & Co.
represented the stock to be a good and
valuable stock and that 1t was mer-
charitable on the stock exchanges and at
curb stock exchanges Mr.. Mathews fur
Their alleged that he had demanded HIS
money, but had been refused and that
he had never had any stock delivered to
him.
The report Of the grand jury was as
follows:
During this session Of the grand jury
there have been a number of transactions
brought to the attention of this body
which involve the sale OF stocks OF varl-
Gus kind, which were either entirely
worthless or of very doubtful value. The
evidence adduced by our Investigations
leads this body to believe that there are
a great many wild cat enterprises be-
ing hoated here in Indiana at the present
time with the object of fleeing the pub
lie through the sale OF such worthless
stock.
Those who deal In such securities are
usually very careful to refrain from
making definite representations which
would bring them under the criminal
Iarrv nR
by making glowing promises concerning
the future OF the particular scheme In
which they are interested, thus morally
defrauding the investor, yet keeping
with the LAW. Furthermore, many of
the companies issuing such stock are in
corporated in foreign states or have
their properties in distant parts of the
country and, therefore. IL is difficult or
almost impossible for the local authori
ties here to produce definite proof Of the
falsity OF the representations made by
the representatives of such concerns.
SEE NECESSITY
OF PROTECTION.
while it is true that the investors
themselves are TO great extent at fault
for not making the proper investigation
before buying securities Of this kind,
stu it should be the design and purpose
Of the law to protect the credulOus
against themselves in such matters. We
are led to believe that Indiana just now
is a particular dumping ground for
worthless stock, because It is one of the
few states in the middle west which has
no blue sky law.
'Such laws in neighboring states pro-
vide for an investigation By state au-
thorities Of the company in which 1t is
the purpose of promoters to sell stock
before they nre granted a license TO
sell such stock in that state. We believe
that such a law should be enacted by
The Indiana general assembly to pro-
tect investors in this state and drive out
many Of the 'iy-by-night' concerns that
are now operating In Indiana. We do
not desire to cast any reelection upon
the many legitimate enterprises, even
though of a speculative character, which
are being financed at this time by re-
sponsIble citizens of this community.
1--WE, therefore, recommend to the next
session of the general assembly that Il
pass blue sky law for the protection
of the citizens of this state, making it
unsafe for the INSCRIPTIONS TO impose
upon the credulity of unsuspecting per
sons in matters Of this Kind