The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-07-23
TO ASK PROBE OF
HOPKINS OFFICE
Governor VIII Be Requested to
Name Committee.
Blue Sky Operations Aroused
Criticism Over State.
PROBE EXPENDITURES, TOO?
Allen Refuses to Comment on
Attorney Generals Case.
Messages Pour Into His Office
Urging Investigation.
BY A. L. sHULTz.

BY A. L. SHULTZ.
Governor Allen is to be called upon
to name a committee to investigate
blue sky operations thru the office of
Richard J. Hopkins, attorney general.
Publication of records showing that
Cliff Matson, an assistant attorney gen.
eral, represented stock selling schemes
as a private attorney while drawing
salary from the state has aroused
wide criticism.
thru southwestern Kansas the gov
ernor declined to comment on the
Hopkins case. Several weeks ago, tho.
he directed an investigation of the
state banking department based on
demands from over the state. He has
since directed custer proceedings
| against Walter Z. Wilson, state bank
commissioner.
First Wilson, Now Hopkins?
Similar procedure may now be de-
manded by persons who have con-
demned the policy of Hopkins in blue
house show that Hopkins sat as chair
man of the blue sky board and passed
on stock selling permits of corpora
tions which had retained the law firm
of Matson & Stearns of Wichita as
| private counsel. Matson at the time
was in the employ of the state and
lcharged with the responsibility of pro-
| tecting Kansas investors against wild
cat and highly speculative invest
/ ments.
Reports of the blue sky department
| show that some of the companies rep
resented by the assistant attorney gen.
eral offered investments of a highly
| speculative character. In fact, in at
| least one or two instances companies
/ represented by the firm failed or were
| unable to meet the department Nre-
| quirements. At least one other COM
| panv is shown to have retained the
/ a a
| could not get their affairs in shape to
make a sufficient Showing in landing
a permit.
| Matson In Wichita Case.
| It was Matson who represented
| Hopkins in the Jack Hussey case in
/ Wichita and directed dismissal of the
| liquor charge against the wealthy
| clubman. Hussey had been arrested
1 during the Brewster administration
/ when he receipted for 40 quarts of
wine shipped to Wichita from Califor-
| mia as "olive OIL
| Following the scandal surrounding
| dismissal of the Hussey case, County
| Attorney Comfy of Sedgwick county,
| rearrested the Wichita man. Hussey
| then pleaded guilty. He was par
| doned by Governor Allen.
1t was this case, backed by more
| recent revelations of blue sky opera
| tons thru the attorney generals Of
flee, that has occasioned a demand
1 a
| said to be from tax payers and in
/ vestors who want to know both as to
the use of state funds by Hopkins $
| department and the amount and
| methods of collecting private attorney
fees by members of the staff. There
is a feeling, several prominent To-
| pekans declared today, that the peo-
pie are entitled to know the extent
| to which state attorneys carried their
private practices while drawing sal
sas investors against purchase of Sc
curities.
Look Into Use of Funds.
While no direct statement has been
| made thru the governors office, it
was asserted today that a, number of
letters and telephone messages have
| been sent urging the governor to
make public the findings. An inves-
| tigation would doubtless go to the ex-
tent of at least a peek at the prac-
| tees of all persons attached to the
| department, as well as the manner in
(which state funds have been used.
Following publication by The
Estate journal of the record of
blue sky cases handled by the firm of
Matson & Stearns during the time Cliff
Matson has been an assistant attorney
| general, this paper sought a statement
from Hopkins. The attorney general
was not in the city Thursday. This
morning he was in conference with his
office staff. The conference was be-
hind closed doors.
Over the telephone The State Jour
nal asked Hopkins for statement
He hung VI. the receiver. Called a
second time Hopkins was again asked
to tell of Matson's activities while serv-
ing as his assistant The attorney
general asserted he was not response
BILE for lies circulated by profiteers. -
and insinuated malice behind the
story. He. was then asked if the Off
cial record as published by The State
Journal was untrue. He made no an
swer and again hung up the receiver
after declaring at isn't the first time
a bunch of lies have beenv circulated.
The record as printed by The State
Journal is in the state house. It wa:
made by Hopkins and his assistant
So far as The State Journal knows the
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