The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-07-21
PAID BY The STATE.
Yet Asst Attorney General Rep
resents Wildcat Firms.
Records at State House Show a
Busy Practice.
HAS VOTED FOR THE CLIENTS
Attorney General Hopkins Has
Favored Several Firms.
elf MatSOn Receives Benefits
From Both Sides.
HAS VOTED FOR THE CLIENTS
BY A. L. sRULTz.


Too much outside business SEEM
lngly has kept Attorney General Hop
wins's eyes off hiss own department.
His much heraIded campaigns for re-
form have IN every instance reached
only the fornuIative stage where petit
/ tons have been filed in various courts
All important cases which have gone
; to trial seemingly have been lost and
the expenses charged to the state. In
his rush to start new reforms, Hop
kins's attention has been distracted
from wholesale handling of blue
sky and promotion schemes in his own
office, it appears.
Organizers of highly speculative cor
poratlons in kanSaS-and foreign cor
poratiOns seeking to sell stock in
] this state-seem TO have formed a
warm attachment for the law firm of
Matson & Stearns of Wichita Cliff
Matson, senior member of the firm, is
an assistant in Hopkins's office. While
/ Hopkins has sat with the blue sky
| board which is directed by law to pass
impartially on the public's right to
protection against sundry wild cat ven
lures, his assistant has industriously
represented stock selling applicants
before the blue sky department.
Firms Business Big.
Records in the state house show
/ that the firm of Matson e Stearns has
enjoyed a most excellent business at
the hands of companies which desire
permits. This firm of course, prac-
tees law for profit. Matson, as as
sistant attorney general has been a
! Hopkins assistant since he came to
Topeka. By virtue of his relations
with the state. Hopkins and Matson
are bound by the same laws and con-
stitutional provisions as to public re-
sponsibility.
! Few law firms in Kansas have such
an extensive practice before the blue
/ sky department as has that of Matson
! & Stearns. In fact reports which
have come from Wichita have been to
I the effect that they have been able to
corral the cream of the promotion
permit business.
Richard ]. Hopkins. as attorney
! general, is chairman of the blue sky
I board On numerous occa sions he
4 has sarcastically raised questions re-
garding practices and procedures be-
/ fore this department Yet there is
nothing to indicate that he has sought
to either restrict, regulate or bar the
! handling of wild car oil ventures and
other promotion schemes by his as
sistant who works for profit both for
4 his private client and the state.
! Matson, as an assistant attorney
/ general, is in a position to render
fmuch valuable service to corporations
which employ the Wichita law firm
/ Because of his official capacity. he is
in a position to gather knowledge as
/ to procedure and proceedings which in
cases of private attorneys would be
entirely closed.
Nor has Hopkins action in blue sky
matters been limited entirely to the
mere failure to notice that Matson is
the paid attorney for companies ap-
pearing before his board. On several
! occasions, so the state house records
show, Hopkins has voted to grant per-
mits to companies which were repre-
! In all of the cases cited. Matson ap-
| peared either before the members of
the blue sky board or before the blue
sky department in behalf of the COM
| panies. These services were also per-
formed during the period when Mat
son has been on the state pay roll as
4 an assistant attorney general. They
have also occurred during the term of
! Hopkins as attorney general and while
! Matson has been acting as an assistant
a close adviser and under oath to pro-
/ tect the interests of the investors of
( the state.
Summary of Cases.
Here is a brief summary-perhaps
not a complete record-of the blue sky
promotion schemes in which Matson
has appeared before the state depart
ment during his term of office; or in
which records show companies to have
been represented by his firm:
August %, 1919, the L. S. Oil Shale &
Refining company of Blackwell, Okla, was
granted authority to sell its stock in Kan
sas. Matson d Stearns are shown to have
been the legal agents of the company and
Matson himself made numerous trips to
representatives of the~blue sky department
/ in his effort to win favorable order for
this company.
July -. 1919 the Walters Royalty of
wichita, was granted permit to sell its
/ securities in Kansas, Matson & Stearns
/ represented the company as attorneys.
1 Hopkins voted to grant a permit to his
assistants private client.
| October /. 1919, the Quadrangle Oil com
/ pany of Wichita was granted authority
to sell its stock to Kansas investors. Mat
I son d Stearns are shown by the records to
reported to have called on the blue sky
| department frequently in his effort to
cure approval for the company. Hopkins is
shown to have voted for the permit
March 3, 1920. the Cardinal Oil company
/ Of Wichita obtained authority TO sell stock.
Matson was also personally active in having
shown TO have been absent
July :. this ear, the Western Furniture
given an authority to sell some preferred
! kins voted for the permit.
About October 6. last year, the Thomas
Culnan Royalty made application to sell
+ securities. Matson & Stearns were attorneys
4 for the royalty company. The company
/ did not comply with requirements made by
the state board and the application was
not authorized.
July ), 1919. application was made to
! sell Furman Royalties interests. The ap-
piication to the state board was made thru
/ the firm Of Matson & Ctearns as private
attorneys Requirements of the board
were not complied with by the company.
/ The royalty is declared in state house cir
| cles to have been one of the very Wild
! propositions sold in KANSAS. Frequent
| complaints have been registered from over
| the state relative to this Investment.
Within the last few weeks Matson called
or the blue sky department to see the
/ files q the Homer-Bull Bayou Royalty. This
/ is rated very Wild royalty. In spite
I Of this record before the state board.
/ Matson explained that parties interested
| the proposition in such shape that 1t would
pass the board
i Within the last week AlatSon appeared
J before the department privately retained
attorney for the Marigold Oil & Gas COM
A