The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-06-17
COMMISSION SEES
FINANCE RECORDS
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knowing why the commission be-
lieves that Indiana investors need
protection beyond this. l am in
terested in knowing whether the
commission has as great or greater
safeguards oil all securities it per-
mits to be sold In Indiana"
To Amend Charges
On the other hand, additional
charges and information against the
Adair company are to preferred Fri
day by w. Fl. Arnett, State chamber
managing director Arnett has en-
gagged Ralph Kane. local attorney,
to draft the amended complaint, 1t
was learned.
Charges Denied
Developments Wednesday were
the appearance of Erwin and Suther-
land, their unqualified denial of Ar
nett's charges that their company
mlsrepresented it's interests in Flor
ida hotel projects, and Arnett's re-
fusal to withdraw the complaint.
Jennings declared that the
suspension would not be lifted at
once, even if the State chambers
complaint is withdrawn. He said he
would hear Kane Friday morning
and fix a date for a formal hearing
on all charges. Approximately
twelve Atlanta and Flo 'ic or
CARNATIONS have wiref IS i'm
protest against suspeEs II the
company's license.
From Sarasota
One Of the wires, received today
from p. II. Ennis, president of the
Sarasota Fla) realty board, branded
the States charges as false, ma
licious and slandering." One of the
Adair company's principal hotel in
terests is at Sarasota. A similar
protest was received from the
Sarasota Civilian Club.
On Arnett's refusal to disclose the
source of his information, Erwin
sent a telephone call to John r.
Friedrich of Kokomo, president of
the State chamber, and asked him
to appear before the commission.
One of the important points in
Erwin's defense Of his company
was the showing that the Adair
company was not licensed to sell
securities in Indiana until Oct. 2,
1925. Bonds on the Sarasota Ter
race Hotel project, against which
the State chamber protested vigor-
70 fha
panys. entrance in the Indiana field.
Erwin declared the company had
sold only $4,000 in securities in In
diana, at the most, and pointed to
the fact that the company now has
only one agent in the entire State.
Erwin issued this statement
1.-The first information the Adair
Company had OF any complaint was
few hours preceding newspaper
comment. Arriving in Indianapolis
at the earliest possible moment.
personally called upon Mr. Arnett
and gave him the full history of the
Adair Company and it's operation,
and submitted data. that any intelli-
gent business man would accept
were he unprejudiced.
Bonds Guaranteed
81 informed Mr.. Arnett that every
bond offered for sale by the Adair
company was Internationally guar
anteed by the company and that this
guarantee was endorsed on the face
of every bond. ! produced sample
bond to prove the correctness of this
statement. l further informed Mr..
Arnett that the Adair Company
made public it's financial condition
and produced a published financial
statement of the company in proof
of that statement. l informed him
.Ha+ THE Globe OIndemniy Com
pany of New York licensed in In
-,.aA /. under it's insurance laws,
would guarantee the principal and
interest of any Adair bond at option
on request of the purchaser. The
Globe Indemnity Company wired
confirmation in proof of this state
ment and referred Mr.. Arnett to
their local attorneys. A copy of the
Globe Indemnity Company's guar
antee was placed before Mr.. Arnett
as further evidence. / furnished adj
ditional evidence to Mr.. Arnett suffi-
cient, for any intelligent business
man to prove the long and honor
able record of the Adair company.
- requested Mr. -Arnett to com,
municate with such institutions as
the Metropolitan Life Insurance