The New York herald., 1922-02-24
blue SKY BILL GETS
SUPPORT OF PUBLIC
No Anti -Bucketing Measure
to Pass Assembly Without
Hard Fight.
EVIL Is RECOGNIZED
District Attorney Banton's
Plea for Action Gets
Quick Response.
Financial Lobby Will Oppose
Plan to Require Licensing
of Brokers.
Special Dispatch to THE New YORK HERALD
New York Herald Hareau.

Special Dispatch to THE NEW YORK HznALn
New York Herald Bareau.
Albany, Feb. 22.
Demands for some kind of legisla-
tive action dealing with the bucket
shop menace in New York are becom-
ing so insistent that reluctant leaders
of the Legislature are compelled to
Glve serious consideration to the sub
sect
The Judiciary Committee of the AS
sembly announced to-day that a pub
,ic hearing would Ne held next Wednes-
day at o'clock on the Belts blue sky
bill regulating stock speculation. The
Belts bill ana the need for legislative
action have been called to Gov Miller's
attention. The best hope of those fa-
voring enactment of such bill is that
the Governor will insist on it's passage
This is little gain for the advocates
of regulatory legislation dealing with
the bucket shops. The disposition at first
was TO shunt the bill aside without even
a hearing. But the demand for some
kind of protection from the State has
grown so rapidly in the last few days
that the leaders decided it would be bet
ter at least to have a hearing.
Public Uprising Needed.
1t will require strong pressure to force
action. The program now Is to go
through the form of hearing and of
giving fair consideration to the merits
of the bill and then dump it in the last
days. when the annual slaughter begins
in the Rules Committee. Nothing less
thar a public uprising can beat down
the strong financial lobby here. organized
and open handed and intent on killing
any bin extending State regulation to
stock speculation.
For some mysterious reason the atti-
tude of the majority leaders is distinctly
hostile to any suggestion aimed at curb
ing or eliminating the gambling evil
which draws thousands of victims by Its
tempting offers of big gains.
Recognizing the existence OF the evil,
the leaders appear indiffere1t. Theirs
only is the power in this State to cope
with it. yet they VIII not use the power
unless forced by minority within the
Republican majority.
Assernblyman Charles r. Tetts OF
Wayne county told the Asse -lbly that
1t Ia the duty of the Legislature TO enact
n blue sky law. He introduced bill
regulating the sale and disp 1s;.tion of
securities and generally ameuGing the
consolidated securities law With slight
amendment. this is the same as the
Duggan bill put in last Monday. Mr..
Belts said:
THE blue sky bill which I have in
troduced has been prepared carefully
and embodies the best features OF the
statutes on this subject In Ohio, Mich
ipa, nd 0fh hal faf toA
into law would prevent the olrket shop
operators from fleeing the public as
they have been doing during the past
year as revealed by the investigation
in New York.
Laws Successful EIsewhcre.'
Section 20 provides that .very per-
son. partnership or corporation shall not
conduct In this State the business Of
purchasing or selling shares Of stocks
or bonds of corporations or securities
Of any county. State. Territory or
political subdivision either as Principal
or broker or both without n ..cense. l
introduced the same bill last year after
an investigation OF the subject revealed
the fact that the blue sky laws in Ohio
Michigan and other Western States had
resulted in driving the swindiing oper-
ators from those States into New Yorh
State.
District Attorney Joab II. Banton
OF New York has announced that he
favors the immediate enactment by the
Legislature of blue sky law with
provision for the licensing of brokers
and the inspection OF their business.
He declared that the Investigation of
bucket shops had convinced h'n- that
the supervision over brokers exercised
by the Stock Exchange Is Insufficient
I agree with him. and ! aIn glad to
know That he favors the enactment OF
a blue sky law in the interest OF the
1nphra1 pphtfc