New-York tribune., 1922-04-29
House Adopts
Blue Sky Stock
Billby Acclaim
Opposition to Measure In.
tended as Death Blow
to ''Wildcat" Promotions
Dwindles Before Vote
Need Declared Urgent
Amendment to Make Provi-
sions Applicable to N. Y.
Stock Exchange Is Lost
Fror, TAe Trlbu,.e,s woshlnoton Butco.

From The Trihunes Washington Burco~
WASHINGTON, April %. - The
House, in passing the Denison blue sky
bill dealt what il hopes will be a death
blow to all wild cat" stock promotions.
There was no record vote. the measure
being adopted by acclaim with less than
hundred members present.
Contrary to all expectations, the
sharp opposition voiced during the two
days debate from both sides of the
House dwindled away entirely Just be-
fore the vote was taken and there was
not even an attempt to send the bill
back to the Interstate and Foreign
Commerce Committee for rcdrafting.
Many members among those who
severely criticized the measure indi-
Gated that although they favored the
principle involved, they believed the
Denison bill has many weaknesses and
therefore would insist upon recommit-
ting. Their failure to make any effort
in this direction largely 10 attributed
10 the stanch defense thrown about the
bill by its author.
Insists Need Is Urgent
The bill is designed primarily to
augment the existing blue sky laws of
the various states. Mr.. Denison, in
supporting his measure on the floor,
declared its need is made urgent by
the increasing volume of hotations Of
spurious securities which evade the
state laws by doing an interstate busi-
ness and obtaining investors across
border lines. This traffic would be
throttled under the bill by preventing
the use Of the United States mails and
"for transporting and for promoting
or procuring the sale of securities con-
trary to the laws of the states"
A strong but unsuccessful fight was
made this afternoon. led by Representa-
tive Cotton Republican, of Utah. to
remove from the list OF exemptions
carried in the bin Section f, which pro
vides that it shall not apply to securi-
ties issued, outstanding, distributed and
exchange having an established meet
ing place in a city Of over 100000 popu
lation. The Cotton amendment, which
WAS lost by vote Of 60 to 33, sought
to make the provisions of the bill
applicable to the New York Stock Ex-
change
The bill was attacked by Representa-
tive Halvor SteenerSon, Republican. OF
Minnesota. on the ground that it in
terferes with the right of citizens by
denying the use of the mails. Repre-
sentative William j. Graham, Republi-
can, of Illinois, replied that the gov
ernment has full constitutional power
to make reasonable restrictions of this
character
Opposed by MacGregor
Another member who opposed the
bill was Representative MacGregor, Re
publican, of New York, who declared
the telephone and automobile would
not be in existence to-day If Congress
had passed similar legislation before
they were invented. Henry Ford was
thought lunatic and both inventions
were considered preposterous, he
said, in arguing that the measure will
Stiflc industrial and commercial de
yelopment.
Representative Joseph Walsh, Repub-
hcan, Of assachusetts. criticized the
verolage as obscure and said that "somc
OF the sections might mean ANYTHING"
ne contended that the meaning of the
language in some parts did not coin
eide with the explanations Of MIR. Deni-
son.
An amendment, offered by Represent
atiVe Marvin Jones, Democrat, Of Tex
as, which he declared would have
heIped catch "bluc sky securities at
the source of origin, was defeated On
a vote Of 35 to 13.