Evening star., 1921-10-05
Committee Head to Confer
With Leader MondelI on
Dates Approval.
DEPENDS ON WHETHER
ONE DAY IS SUFFICIENT
Bill Is Formally Reported Today,
With Amendments M de at Com.
mittee Sessions.

The bill designed to force a merger
of the two street railways in Wash
ington will be the order of special
business in the House on Monday,
unless House Leader Mondeli objects
on the ground that this legislation
Will require more than one day
Chairman Focht Of the House District
committee is to confer with Mr. Mon
dell on this point Representative
Zihlman of Maryland. who is to hail
die the bill. assured the committee
that he WIS ready to proceed
The House committee today for
rlally reported the street car merger
bin as redra awn to include the amend
ments made during committee con
s:deration. One change was made to-
day in phraseology. The bill. as il
goes before the House. and which
Representative Zihlman expects to
reintroduce tomorrow. will provide
that the tax be levied on gross RE-
ceipts.' instead of upon gross earn
Inss- as appears in certain para
erapns OF the bill. 1t was explained
additional taxes which the District
will receive
Alternative L~gisIation.
If the street railway legislation is
not given right of way. the EdInonds
bill TO establish model marine in
surance law in the District and the
pawn brokers bill will receive frsi
consideration.
Chairman Focht was instructed at
the meeting of the District committee
today 10 make an investigation and
report TO the committee why the new
school for tubercular pupils. for which
appropriation was made many months
ago. has not been built.
\ committee representing invest
ment brokers and bankers appealing
for the passage Of the blue sky law.
which VIII prevent the sale of fradu-
lent securities in the District, was
given sympathetic hearing and as
surance that, the committee is in
hearty sympathy with the proposed
legisla ton.
a subcommittee consisting of Rep
resentstives Brown of Tennessee
Keller of Minnesota. Milispaugh. Mis-
souri,: Gilbert of Kentucky and
cd to sit in consultation with thc
; representatives Of the Investment
brokers and bankers in framing ade-
quate legislation.
Props.r~ Omnibus Bill.
Chairman Focht suggested that the
committee get together all bills re-
lating to street extensions which
have been sent in by the District
Commissioners and prepare an omni-
bus bill covering this work At the
opening of the meeting today he mad.
II plain that as this is AN extra ses-
sion OF Congress. any Legislation that
is put through for the District is
just so much surplus.
The bills already awaiting action
on the calendar are the juvenile
court bill, the marine insurance bill.
extension of corporate powers OF
Masonic mutual relief in the District
and the Lincoln holiday measure
Representative Roy c. Fitzgerald
explained 10 the committee the need
for the workmen's compensation bill.
but the committee delayed action
until Representative. Underhill of
Massachusetts,, who has reserved the
right to offer a substitute bill. could
be present
Eugene E. Thompson. representing
the District Bankers Association and
the Washington Stock Exchange, ap-
peared in behalf Of the so-called blue
sky bill to prevent fraudulent stock
sales Other witnesses in support of
this legislation were Paul B. Keyser.
counsel for the Investment Bankers
Association: Henry H. Mckee of the
National Capital Bank and F. Y
Wholley, representing the Associated
Advertising Clubs of America and di-
rector of the Better Business Club.
Mr.. thompson said that thirty
eight states have blue sky laws or
some other measures to prevent sale
of fraudulent securities. The District
has been overrun by fraudulent pro-
moters. especially during the last
year and half. he said, since they
have been driven out of Maryland,
and he estimated that this invasion
has cost the people of the District
$5G0,0e0. He pointed to the oil well
just over the District line in Mary
land. which he said Withdrew from
the District from s220,000 to $240. 900.
Trying to Stop Robbery.
In reply to a question from Chair
man Focht, Mr.. Thompson said that
they were not trying to stop a man
from gambling, but to stop some one
from robbing him.
THE newspapers have been coop
ment business before accepting ad-
stocks" Mr.. Thompson said, and Mr..
Wholley said that the Washington
newspapers in the last year have re-
fused more than $4,000 worth of ad-
vertising on fraudulent securities.
some of which offers were accompa-
MED by certified checks.
Mr.. Thompson said that one con-
cern now employs fifty persons solic-
iting from employees in the govern
ment departmepts. He testified that in
one month $50 offerings Of all kinds
Of promotion schemes came to his
desk and that the mails are simply
loaded with them"