New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-04-26
Blue Sky Bill
Debate Closes:
Vote In Doubt
Only 10 Members Of House
Present rs Critics Launch
Final Attack on Measure
Aimed at Stock Frauds

From The Tribune, Washington Eureou
WASHINGTON, April 25.-Thc House
moved long way to-day toward dispo-
sItion Of the Denison "blue sky" sccuri-
ties bill. With sixteen members ait
ting in the chamber, tho lower body
completed, just before adjournment
the three hours Of general debate per
united under the rule governing it's
consideration. The final vote, the out
come Of which is extremely profile mat
cal. proba bly, will be taken before The
end of this week
Despite The fact that there was only
handful of members or the floor dur
ing most Of this aftern Don, there came
from most of them severe criticism %
the measure. The majority decla red
they favored Che principle involved in
The legislation. but that the Dcnison
bill vas Inadequate and would work
many injustices.
One of the stanchest opponents Of
the measure was Representative Nc
Faddcn, Republican, of Pennsylvania,
and chairman Of the Committee on
Banking and Currency His attitude
will influence many members, it is dc
clarcd, largely because he is an &C
hnowledged authority Of the questions
with which the bill concerns itself,
Sees Half Billion Yearly Lost
In opening the argument for adop~
tloN OF the measure. which seeks to got
"a grip on all so-called wildcat securi-
ties, Representative Den ison. Eepubj-
can, Of Illinois, its author. pointed out
that nll great countries of the world
have such laws and That thirty nine
states have passed them. Three other
states, including New York, have fraud
laws. which, ne declared, were not so
effective in preventing the sale Of
fraudulent securities.
The chief complaint TO-DAY and the
only thing the measure is intended to
correct is the evasion of the state laws
through promotions carried on through
the mails and other interstate agencies
across state borders, said Mr.. Denison.
It is estimated. he added, that more
than S5oo,000,o0O is taken in annually
by crooked promoters.
"The BILL continued Mr.. Denison.
has teeth in it and il passed will
drive the crooks out OF this country
or put them in the penitentiary. 1t
undertakes only to exclude from the
mails material not salablc under the
Nci lOUn I'VE blUc ohS laws.
Liberty Bond Holders Fleeced
The Treasury Department, he said,
had complained that large number OF
persons throughout the country have,
Through the failure to enact laws to
protect them from these pirates and
buccaneers" lost hundreds of mil
lions of dollars in Liberty bonds
turned over "for worthless gold
BRICKS
Representative Ramseyer. Rcpubli-
can. Of Iowa, declared the bill had
many weaknesses and did not protect
people in the states that now have no
blue sky laws. He agreed with Deni-
son that the victims of this class Of
promoter generally are women and
mon il ordinary circumstances. and
then pointed out that the bill pro
vdes no method of getting at the
ooth-tongucd salsemen who call per
sonally on prospects," THAT is the
way" he said, that most Of these Sc
curties are disposed off,
Vigorous support was given the bill
by Representative Barley. Democrat,
of Kentucky, a member of the commit
tee. He laid emphasis upon the pro-
visions dealing with the great stock
EXCHANGES