The New York herald., 1920-01-07

may be offered for sale in this State, GER
tain detailed information concerning the
financial condition of the company 80
quired to be filed with a designated Off
Ger or bureau. The information that
should be required is comprehensihly set
out in the bill proposed by the minority
of the Governors Blue Sky Law Com
mission. Among other things, the state
ment should contain information as TO
whether or not the stock offered for sale
was promotion or treasury stock-and what
part of the proceeds of the. sale of the
stock was to be used for development or
manufacturing or operating purposes. and
what part was being used for the COM
missions for the promotion of the sale of
the said stocks or securities. The state
ment should also contain definite. infor-
nation concerning the financial condition
of the company or corporation offering
the stock for sale and a full statement
relative to the character or value OF the
securities so offered and of the property
and earning power of the company issuing
the said stock or securities.
There should be n federal blue sky
law whose provisions would be similar
to the provisions of the blue sky law
in the State Of New York, which law
would prevent brokers or dealers in
investment securities from other States
from doing business by mail, telephone,
telegraph or any other interstate means
of communication unless the provisions
of the federal law had been complied
with"
Mr.. Kilroe again takes issue with the
majority report of Governor Smiths S
Blue Sky Law Commission, which said
a blue sky law would be q step back
ward, and would leave the public un-
protect and at the mercy of the Wall
street 'sniper.
Would Accelerate Discomfort.
'1t (the majority proposaD would
accelerate discomfort at the unfair dis
tribution of wealth." he continues, land
add to the progress of Bolshevism and
Socialism, and throw cloak Of pro-
lection around the so-called promoters
and underwriters who, by superior
cunning and lack of conscience rather
than by honest labor and production.
are annually extracting vast sums OF
money from the investing public. In
the majority report the committee over
looked two of the greatest evils in
Wall street.-the bucket shop and the
lack of protection for collateral put up
by investors"
Mr.. Kilroe said that he had studied
the financial methods employed in
thirty-eight States having blue sky
laws, and he also investigated methods
used in foreign countries, particularly
in England and France.
II cannot agree with the committee
when they say that the blue sky laws have
worked unsatisfactory In other States"
he declares. while It is true that there
are some crooked dealers in the States
where blue sky laws are in effect. yet
their numbers have been greatly reduced.
and some protection has been given TO the
public.
The majority Of the committee ad-
vances the same reactionary arguments
against a blue sky law In this State that
have been advanced against every pro-
gressive piece OF legislation advocated
here. The arguments used are the identi-
cal arguments used in other States against
similar legislation and ere the same as
those that were advocated against the
Workmen's Compensation law, social bet
ter1nent legislation and laws OF similar
progre essive character"