The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-27
FEAR RULE BY few
IN REFUSING PERMIT
TO FARM CORPORATION
By WILLIAM r. sANBoRN.


The refusal of the Indiana state
securities commission to license the
Farmers Finance corporation to do
business in this state was explained in
part at the Offices of the commission,
on Tuesday. 1t expected that the case
will be reopened for discussion at
Indianapolis on Tuesday, August 2, but
this will be at the option OF the Amer
lean Farm bureau. If the U. S. Grain
Growers wish to present their case
and to endeavor to get favorable &C
ton on the proposition, they will be
given opportunity before the full
board.
President Brown, of the Indiana
Farm Bureau left for Chicago on Tues
day night to attend a meeting of the
Grain Growers on Wednesday, called
matter.
Commissioners View Point.
In an interview asking for reasons
why the commissioners said:
ITO permit a foreign corporation to
come into this state and sell its securi-
ties, having as its ratio of common
and preferred stock s100,000,000 pre-
ferred and 81 shares of no par value
common, with all the corporate dis
abilities which this implies, would, we
believe. be violated the provisions of
| the Indiana law and contrary to the
best Interests of those who would be
come stockholders. With the danger
of pertetuating the control of the com
pany in the hands of a few, without
any recourse by the holders of pre-
ferred stock who are providing the
funds with which the operations OF the
| United States Grain Growers, Inc, are
| to be financed, the securities commits.
sion would be going far outside the
scope of its line of decisions in similar
cases if it were to issue a certificate to
the Farmers Finance Corporation"
| One Law for All.
! I'VE have only asked the Farmers
Finance corporation to abide by the
same laws and come under the same
rules as other competing companies
The securities commission has com
PEELED other applicant companies tc
conform to these rules before ISSUING
them license to sell their securities
in this state, and l am sure that tn.
officers of the Farmers Finance cor
favors from state officers"
Nj. L. Mendenhall, administrator fo
the commission. said another obiec
ton to the application of the Farmers
Finance corporation is that the sworl
records filed by the applying compan,
in the office of the securities commits
sion show that only small numbe
of the directors have paid for thei
| ct
: applying company failed to set out tn
? amount of salaries paid to the officer
and directors, as is required of al
: companies.
/ Every farmers elevator that ha
: made application to the securitie
: commission has been granted a lie
ense," said Mr.. Mendenhall. In eacl
? of these cases l personally recommen
! that license be granted and in eac
2 case my recomme ndation was unan
: mously followed by the commission
: THE truth is that in reaching tn
: decision in this case, the commission
n had its eyes and mind on, first, tn
4 laws of the state and the rules of tn
e commission; second, the farmer VIII
will be the prospective purchaser an
/ not upon the promoters and high-sa
= AIRED officers of the enterprise
81 Farmers Short on Cash.
5. This S100,000,000 of preferred stoc
S was to be sold in Is states, if license
S could be obtained Indiana's quot
d was to be $750,000 1t may be oil
l. served, however, that a right to Sc
anything does not furnish prospective
buyers the money to pay with The
are planning at Washington to d
something to aid farmers. Numerou
o bills and measures have been advoca
ed to this end. Farmers need relic
and comparatively few of them al
= now prepared to invest in any kin
of stocks or bonds.