The Mankato free press., 1921-03-18
BLUE. SKY IS FOR SALE
IT'S EASY TO DISPOSE OF
FAKE SECURITIES
People Have Thus Been De.
frauded of Millions Of
.. Dollars

st. Paul, March 17.--More money is
being stolen from the citizens of
Minnesota every day by fake promo
ters than is stolen by thieves and
highwaymen in an entire year. That
was the statement OF q. B. Brubaker
examiner for the state securities
commission, made today IN endors,
ing a campaign begun by Minnesota
farmers to put a stop to blue sky
swindlers in the state.
We don't hear Of tenth OF the
actual cases in which Minnesotans
are swindled in fake promotion
schemes and worthless stock games,
he said. People are ashamed to ad-
NIT they have been stung. The
Money taken in Minnesota every
year by blue sky promoters runs up
into the millions. 49,,
One such promoter took $128,000
out of one community and not one OF
his victims complained until he had
fed with his spoils, Charles j. Andre,
executive officer OF the commission,
said. Dozens of schemes now being
worked are beyond the reach OF the
law, he said.
One Family Loses $4,000
Since sales Of stock must be Il
censed in Minnesota, he said, 1.-The
| units of interest In oil land leases.
The average oil lease costs so cents
to. 81 an acre; and the promoter sets
out to sell it again for $4,000 Or
more to persons who know nothing
about oil and who don't stop to In
vestigate."
"A man and his wife came to US
few days ago." said Mr.. Brubaker.
They had been picked for $26,O0Q IN
the stock of an oil company that had
! been refused a license.
Three men in the last few months
raised $4,000 on Kentucky oil
, lease in another small Minnesota
| community, and split $4,000 OF it
among themselves. Promoters selling
interests in a lease on oil land In
Wyoming that had been turned down
by the state geologist, got $4,000 out
of citizens of Hennepin county. One
of the same men who promoted the
$4,000 deal in Kentucky oil leases
picked up $4,000 last year in anoth-
er oil game" e.
( In other promotion schemes, the
commission has learned, subscribers
, have paid hard cash for privilege
guaranteed under the United States
constitution. They have purchased
for two years the privilege" of buy
ing merchandise for their farms.
In an effort to drive the fake pro-
moter from the state, the Minnesota
Farm Bureau Federation has begun a
campaign to organize ''blue sky
committees in every county, to inves.
tigate promotion schemes in which
residents of the county. are asked. to
inycst The federation also Is back
! ing an amendment to the securities
commission law, to provide state
regulation for schemes now outside
state control. Under the proposed
amendment. now before house and
senate committees, state licensing
and state regulation would be proyid-
ed for the seller of ANY contract by
which, for consideration to be paid
in advance, the issuer agrees to fur
nish to the purchaser Of such con !,
tract, service In the purchasing oil
goods, wares or merchandise.
The amendment is aimed at no
sound corporation, but only at fake
promoters schemes over which the
state now has no control, federation
officers said D ..s~
:, Renewed Wool Pools
Organization of county wool pools
again this year was urged by the
state executive board of the Mime
sofa Farm Bureau federation in ses-
sion at st. Paul on March 10 and IL.
Part of the pooled wool from Min
nesota's clip has been sold, the fed
Grafton announced, in spite of ad :
verse conditions. The executive board
also appointed Thomas E. eastman
Of Owatonna as Minnesota's repre-
sentative at national traffic con
fernece in Chicago this month, call
ed to work out means Of reducing
freight rates. Representatives of the
railroads, railway labor, and farmers
and others shippers Were called to
the conference.