Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-03-13
SEEK AMENDMENT
(Continued from Page One

in Maine and 20 other states as well
as British Columbia, New Foundland
and the Yukon. He claims to own
more than 5000 animals.
Last fall. at the insistent request,
he says, of contract owners that q
more definite guarantee be provided,
the business was incorporated and
since then contracts have been is
sued in the name of the corporation.
This contract is most unique Illus
tration of facing both ways at the
same time. From the legal stand
point it is claimed that it is not an
investment but is a sale of chattelS.
To the person whose funds are
sought it proclaims You are not real
ly buying foxes, you are investing in
a business.
"This promoter very frankly con-
cedes that his objective is the pelt
business; that no proven profits can
accrue to the industry until the time
arrives for going on to such basis.
When that time will be he does not
even venture to guess. In the mean
time there can be no income what
ever from the project except through
the marketing of comparatively
few animals which are not proven
>.
who are actively solicited to come
into the enterprise as investors have
under the contract. which is offered
them. nothing whatever to protect
them as such. The contract is abso-
lutely terminable at the expiration
of one year at which time they may
be asked to come and get par OF
foxes for which they paid S200o,
whose value as a merchantable COM
modify is admittedly materially less.
1T is not, of course. intended 10
interfere with the sale of foxes as
commodities and for this reason the
bill is made applicable only TO any
form of contract which does not con-
template delivery. as 1t is felt that
that is the most practicable way OIL
reaching the situation. The partlcu-
lar form which the bill shall take. OF
course, is a matter of no material
consequence. so long as the actlIl-
ties at which it is aimed can be SUB
iected to the same analysis and the
same supervision as all other meth
DDS of financing enterprises.
This bill is aimed at a definite
evil. This kind of financing could
not be applied to anything but fur-
bearing animals, and we want the
hackers of this enterprise to do what
every legitimate business does. The
people behind tho muskrat industry
in Lincoln are registered under the
blue sky law.
Thomas p. Walker Of Biddeford al
so spoke in favor of the bill. He IA
yored the measure because 1t would
furnish protection by the state to
people who have no knowledge of In
yeStiOC in securities
THE OPPOSITION
Representative James E. Perk-
ms of Boothbay Harbor, a member OF
the law firm of Pattangall, Locke IL
Perkins of Augusta, was the first
speaker in opposition to the bill, rep
resenting Frank H. Gordon, Incorpo-
rated, of Bangor, dealers in silver
black foxes.
II wish to be understood as not
appearing against the blue sky law
relating to the sale Of securities. but
to this proposed amendment said
Attorney Perkins.
II am opposed to the bill because
there is a question of the constitu-
tionality of the proposed measure
and do not think it good policy for
the state to have such a law assum-
ing that it is constitutional.
Attorney Perkins then quoted the
state constitution which states that
all men are born equally free and
independent and have certain natur-
al, inherent and inalienable rights,
among those of enjoying and defend
ing life and liberty, acquiring pos
session and protecting property. and
of pursuing and obtaining safety and
happiness. Attorney Perkins also
quoted the federal constitution which
says that no state shall deny to any
person within it's jurisdiction the
equal protection Of the laws.
Continuing, Attorney Perkins stat
ed that this business includes con-
tracts for the sale of personal prop
erty, animals, fur-bearing animals,
possession retained by the seller and
for fur-bearing and ranching pur-
poses. He also said that is a spec
ial kind of personal property, ami
mails. a special kind of animals, fur
bearing animals. special sale con-
dition, possession retained by the
seller. special reason for retaining
possession, for ranching and breed
ing purposes.
eve claim that this proposed law
is unconstitutional and we say that
1T is not in the realms of the legis-
lature tL violate the constitution.
This measure is discriminatory
Where are you going to stop If this
bill is passed? A bill Of the same kind
might apply to close automobiles or
pianos.
Our position Is that the proposed
law is arbitrary classification. We
suggest to the committee that IL
there is any doubt about the consti-
nj " IF
certainly believe that there is, that
the matter be referred to the attor-
ney generals department for an
opinion.
Attorney w. r. PattangalI
Ex-Attorney General William r.
Pattangall of Augusta. who spoke
in opposition to the bill, explained
in detail the contrast between Dr.
Frank H. Gordon, Incorporated, and
the customer. Under the contrast
the customer gets two foxes. Dr.
Gordon guarantees to supply one fox
at the. end of the year if the two
foxes do not produce. DR.. Gordon
takes an option on the fox within the
year and pays the customer $3.50 for
1T II he exercises his option. so that
the end Of the period covered in the
contract the customer has three fox
es. on one of which DIR. Gordon has
an option.
There is no guarantee in the con-
tract that the customer will get any
money" said Attorney Pattangall.
Mr.. Pattangall quoted from a let
ter from Bank Commissioner Law
renee in which the latter said that
he believed that Frank II. Gordon,
Inc, was well under the provisions
OF the existing Blue Sky law.
For all know. he may be right"
said Mr.. Pattangall. land If so there
Is no need of this amendment to the
Blue Sky Law"
Mr.. Pattangall said that DR.. Cor
uon's industry had been investigated
hv the