Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1921-01-04
ADMINISTRATIVE BLCE-SkY
LAW MAKES EFFECTIVENESS
Man of Authority and Ability Needed
in Charge Actual Working OF Law
Says Mac-MiChael.

SEATTLE, Jan. 4--HAdm inistra
tion of 'blue-sky' law is 90 per cent
of its effectiveness" said r. II. Mac
Michael. Vice President of the DeX-
ter Horton National Bank and men,
Der of a representative committee o.
Seattle men that has drafted blue
sky" law for presentation to the legis-
lature next month.
UNLESS we have a man of author
ity and ability in charge of the actual
working of the law, it will become a
dead letter on our statute books. This
is too important a matter to be en-
trusted to a clerk or subsidiary officer
in some Of our already overwhelmed
state departments.
THAT is one reason why our COM
mittee deemed it important that {.
thoroughly responsible and efficient
man be placed in charge OF admins
tering any "blue-sky" raw enacted.
We must have a man who knows
every phase of the investment bust
ness and who can devote his entire
time and attention to this matter
1T was with no thought Of increas-
ing the expense of the stote or of
creating an Office for any, certain man
Of clique of men that this measure
was drafted. Our committee, how
ever. feels that any additional cost
that a state department of securities
would involve, would be money we'll
spent in the interests of the taxpayers
of Washington. II even a fraction of
the money wasted in worthless stocks
and bonds could be saved, it would
pay the cost of the proposed depart
ment many times over.
when it is considered that, at a
very conservative estimate, the people
Of this state are spending 100000
to $5.O00,O00 every year for securi-
ties not worth the paper they are
printed on, the imperative need for
"blue-sky" law is quickly apparent.
If @even part Of this vast sum can
be saved, it will more than make up
for any increased cost of operating
state securities department.
Think of the people of this state
throwing away $4,000 every busi-
ness day of the year! Not cent of
this will they get back. Sharpers at
home and from other states and Can
ada collect these large sums and live
in luxury. while our people have 20
state protection afforded them.
"The proposed "blue-sky" law,
drafted by our committee is aimed
primarily and exclusively to protect
the investing public. 1t is impossible
under law. such as proposed, toll
give anyone a monopoly on the invest
ment business. ANY person or Arm
doing legitimate business easily cal.
convince the commissioner of secur-
tiles thot such business is entitled
to a permit under which to work.
Yet the sharper's trick would be ex.
posed and the public so warned that
they might save their money if so
inclined. The law would make /, |
compulsory that financial statements
be issued on all concerns for which |
securities are issued.
"The proposed securities deport- !
ment, might be self-supporting. The
amount of the fees paid in can only |
be estimated. In two years we will |
be able to determine whether or not |
the fees are sufficient and at that
time fees and expenses can be adius
ted to meet actual conditions. The
public is demanding protection and
our committee feels the legislature
next month should give it, through |
a law such as proposed"
% ,,tpA5 |
FEDERAL WATER POWER "''"i 4