Laws to Protect Investors
Upheld by Supreme Court
k
(By Associated Press.)
WASHINGTON, Jan. 22. — The su
preme court today rendered a decis
ion upholding the blue sky laws of
Ohio, South Dakota and Michigan, de
signed to curb the sale of fraudulent
securities. It held that the laws are
not a burden upon interstate com
merce in the sale of bonds and stocks.
Blue sky laws, enacted first in Kan
sas in 1911 with the purpose of pro
tecting credulous investors against
sales of worthless stocks and bonds,
have been copied in some measure in
more than half of the states of the
union. Twenty-six states are said to
have laws embracing the fundamental
principle of endeavoring by constitu
tional methods to prevent sales of
“get rich quick" or "fly by night" se
curities.
Three cases brought before the su
preme court and argued together in
October, 191ti, concerned the consti
tutionality of the blue sky laws of
Ohio, South Dakota and Michigan. All
had been held unconstitutional by low
er federal courts, and their enforce
ment by state officials were enjoined
while the officials appealed. The ori
ginal Ohio law of 1913 was amended
February (1, 1914, by the state legis
lature to meet alleged defects of the
South Dakota and Michigan laws. The
South Dakota law of March 15, 1915,
and the Michigan law of April 9, 1915,
repealing the old 1913 act which had
been held void, was substantially pat
terned after the "model" blue sky law
drawn by a committee of the National
Association of Attorneys General fol
lowing its 1914 convention.
Two principal points upon which
the Ohio, South Dakota and Michigan
acts were declared void and no-en
forceable in the lower courts were:
That they unduly burden interstate
commerce, of which stocks, bonds and
other securities were declared to be
instrumentalities, and that the laws
exceed the states’ police powers of lo
cal supervision.
Iii addressing (no supreme court,
tin National Association of Attorneys
General said the legislation was in re
spouse in the increased flotation of
traudiili-nt securities during the last
years, causing loss of $100,000,000
annually The association asked the
■ lit to uphold the legislation, par
ticularly as meteoric value of stocks
due to the war has given new Impetus
to is ties, and purchase by the public
"I fraudulent securities.
Of the blue sky laws enacted, the
Kansas act, the West Virginia law of
I 'M and the Iowa statute, in addition
to those of Ohio, Michigan and South
Dakota have been held void by lower
Hills for such laws in Indiana
‘ltd Colorado, in 1!*13, were vetoed; a
Washington law was defeated by pop
reterendum in 1915. Revised
Mamies differing materially from the
■ '""del tatute adopted by Michigan
aim South Dakota have been enacted
in Iona Oregon, Wisconsin, West Vir
^B Finiti. Kansas and North Dakota, abol
ishing licensing of security vendors,
'ourts have upheld the Arkansas,
it, t lnrid.i. Ninth Carolina and Oregon
11"’ Ohio law was amended In pur
IHU Of a State constitutional
IP ' "dnu'iit in laij. was declared un
I’ tiiutioiiul by federal Judges, War
I ring ion. Safer and Hollister, February
>"• 19111, sitting at (Tncinnatl, and an
■ injunction prohibiting its enforcement
9B*as "Hi'ii against Attorney General
■B I'tftt' t and Harry T Hall, state bank
rinteiiilciit. in three sulta. brought
^Bi Hii tlejger Jones Co., security un
^Br»nters oi Canton, Ohio; Don C.
Coultrap, its sales agent, and William
It. Rose, security salesman for the
Richard Auto Manufacturing Co., a
West Virginia corporation. Rose was
convicted under the penal section and
was awaiting sentence.
Federal Judges Dennison, Sessions
and Tuttle held the new (also the
old) Michigan law void, enjoining its
enforcement, in suits against Attor
ney (ieneral Grant Fellows and the
state treasurer and banking commis
sioner, constituting the Michigan Se
curities Commission. Plaintiffs were
N. W. Halsey & C’o., and the Conte
nental & Commercial Trust & Savings
Bank of Chicago; I-ee, Higginson &
Co., of Boston; Remick, Hodges & Co.,
of New York; Otis & Co., the Weis
Fibre Container Co., and other secur
ity dealers and corporations affected.
The South Dakota statute was de
claretl invalid by Federal Judges San
born, T. Munger and Elliott, No
vember 18, 1915, who restrained Attor
ney General Caldwell, Insurance Com
missioner O'Rrien and Public Exam
iner Wingfield, comprising the stato
securities commission, from its en
forcement, sustaining a suit of the
Sioux Falls Stockyards Co., and Wil
liam and Harry Morley of Sioux City,
Iowa, salesmen of stock securities.
The latter were being prosecuted un
der the penal provisions.
In all three cases the Investment
Bankers' Association of America in
tervened as a "friend of the court"
in arguments before the supreme court
by former Attorney General Wicktr
sham and Robert R. Reed, its coun
sel, attacking the laws as Interfering
with interstate commerce in normal
transactions in securities.
The Sanatorium Company, Portland,
Oregon, to which institution is sent
the insane patients from Alaska, has
forwarded to the governor's office its
report for the quarter ended Decem
ber 31, 1918, a summary of which is
as follows:
Patients under care at beginning
of quarter (180 males, 24 fe
males) .204
Patients received during the quar
ter (17 males, 4 females) .21
Total.22,")
Patients discharged during the
quarter (ti males, 1 female) 7
Patients died during the quarter
(6 males) . 6
Patients eloped during the quarter
(1 male). 1
Patients remaining under care on
December 31, 1918, (183 males
27 females).211
Total.225
The patients discharged were —
Martin Sorensen, John Spoadnick, H.
T. Park, Henry Emile, A. J. Callow,
lone Jones and Chris Krotnann.
The patients who died during the
quarter were Ole Peterson, George
Francis, D. A. Quinn, Fidel Gallon, R,
M. Aekles and Sam Hill.
▼
DEPUTY MARSHAL CHANGES
MADE AT SEVERAL PLACES.
There has been a general shakeup
in the staff of deputy marshals. C.
W. Mossman goes from Valdez to An
chorage, taking Jim Warddell's old
place, and Frank Hoffman, temporar
ily stationed there returns to Mata
nuska. S. O. easier, of ITnga, has
been transferred to Valdez, and
Charlie McCallum, who "also ran” as
a Democratic candidate for the legis
lature at the recent election, will be
on the federal payroll at ITnga.
-+
TACOMAN’S SON APPOINTED
TO ANNAPOLIS BY WICK.
A Tacoma boy, Raymond Johnson,
son of J. A. Johnson, manager of Frye
& Co. meat dealers, has been appoint
ed to the United States naval academy
at Annapolis by Delegate James Wick
ersham, and has gone east to spend
four months in a preparatory school
making ready for the examination.
Raymond Johnson is eighteen years
of ago.
-»
LOST HIS BANK ROLL.
An Anchorage paper states that O
Harvey came into town with $3,25(
wrapped in a salt sack and pinned tc
his trouser's leg. Something hap
pened to George's underpinning anc
he lost his bank roll. He rec^veret
$2,250 and Ib $1,000 shy yet.
SOME INFORMATION
REGARDING MEASLES.
On the request of Or. H. 0. Myers,
the United States public health ser
vice forwarded a supplement to its
report on the treatment of measles,
their effects and admonition to pre
vent them. The following excerpts
are taken from the report, and may
help the situation existing in Ketchi
kan :
Eleven thousand American children
died of measles in 1910.
The death rate among those at
tacked various from one half to thirty
five per cent.
Thirty per cent of the children were
of school age.
Three hundred and thirty thousand
children w-ere kept out of school for
six weeks to two months.
Complications: Nine tenths of the
deaths by measles occur from pneu
monia. Less frequently there are
other complications, and the eyes,
ears, the central nervous system,
heart and skin may any one of them
suffer.
In conclusion the report says:
When it is known that measles ex
ist in a community no child having a
bad cought should be allowed to come
in contact with other children during
the first three or four days of the
cough.
It is little less than criminal to per
mit children known to have measles
to come in contact with well children.
In this connection it may be remarked
that yvhile It is generally considered
that one attack of measles confers
immunity, there are many cases on
record of second and third attacks. It
is true that the second stacks are usu
ally mild, but too gicat reliance should
not be placed on this immunity.
Children should be discouraged as
far as possible from playing games
which will permit of an interchange of
nasal or mouth secretions. It is the
duty of every parent having measles
in the home to see to it that it is re
ported to the public health authorities.
It is equally the duty of parents to see
that their children do not come in con
tact yyith well children during the
time when the infection may be trans
mitted. Measles kills more people in
the United States every year than
smallpox. You can's kill a child any
deader with smallpox than you can
with measles. It is the duty of private
citizens and municipalities to take
every knoyvn measure for the preven
tion of the spread of this disease. —
Ketchikan Miner.
-
--W
TOWN OF CORDOVA.
Municipal Taxes.
Town taxes are now due and pay
able to the town treasurer, H. I
O'Neill, at his office.
Said taxes will be delinquent or
the second Monday In February, 1917
at the hour of 6 o'clock p. m. Upor
all unpaid taxes after that time a pen
alty of five per cent will ve collected
H. I. O'NEILL,
Town Treasurer.
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Have your Job printing done at thi
Times office.
NOTICE.
All creditors of the Cordova l a-k
ing Company, who have not hereto
fore presented their claims to jj.
Brock, at the Blum, O'Neill store ra
requested to do so at once.
-«
John Raw-son has removed his bar
gain store to the Northern block op.
poslte the Cordova House.
-*
Be a Dally Times reader.
A Penny Saved
Is a 'Penny
Gained.
By BREEN.
The wise housewife j
saves many a penny read- i
ing the newspapers.
If there is a bargain
advertised she’ll not miss
it. She constantly is
looking for it.
It is up to the mer
chant. Keep the hou
wife posted. Let 1
know through the news
paper what you have to
offer. Incidentally men
today ransack the new s
papers for bargains as
assiduously as do women
If you want to sell
your wares advertise.
Advertise in the best
medium, the newspaper
Also if you want to buy
successfully read the ad
vertisements.
Sheldon
AUTO STAGE LINE
Giving an all-year auto
vice between Chltlna ami I
banks, Alaska.
Enquire about them at Chiiina
Hotel. Chltlna. Alaska, before
making reservations ■ Tsjj
——WSII.MSMIiiSmOBI
M. C. Thompson H. C li'irphy
I
t
The MECCA
Thompson & Murphy, Props
Dealers tn
WINES, LIQUORS AND
CIGARS
Phons 107.
E-H
i !
SUBSCRIBE FOR THE
DAILY TIMES.
DELIVERED BY CARRIER,
*1.00 PER MONTH.
MEET ME AT
The HORSESHOE
POPULAR RECREATION PLACE
Where We Can Always Find Our
Frieuds.
Finest Billiard and Pool Tables In
Alaska.
BEST GRADES OF STANDARD
BRANDS OF CIGARS.
J
1 Foos Gas Engines )
Hi 4 to S'-U Horse Power ;§
1:5* :«
Genera i iectric Motors §<
RoebH ; Tramways
Peltor Vater Wheels
Chicago Oil hi ines and Compressors
| Rega' doat Engines
| Harmon M ichineryCo Inc I
% Oxy A > aylene Welding. ||
CORDOVA, ALASKA
| When Ordering Beer
"■- —INS1 ST ()N --=
Rainier Pale
#■ ■ . "■ ..
Sixty Steam Heated Rooms Eletric Lighted
Hot and Cold Water in Every Room
With or Without Bath.
; Cordova House
H. C ROSS, Proprietor.
Headquarters for Railroad and Mining Men
Sat,4action Guranteed
Rates Reasonable f \
20 Per Cent
IS EASILY SAVED
I 4' ,-,
By Paying in Advance for
The Daily Times
Six Months, $5.00
One Year, $10.00
_ -
— " 1 ■" 11 "* '" —"" -
REASONS WHY YOU SHOULB HAVE ABANKING CONNECTION
Money in the bank is safer than in your own safe. The bank
takes the responsibility, and it does not cost you one cent.
Money in the bank gives you a credit standing which you
migh need sooner or later in your business.
Money in the bank enables you to pay your accounts by
check, and thereby keep a better record of your income and
expenses.
Money in the bank is not spent as freely as money in your
pocket.
Money in the bank gives you a feeling of safety and satis
faction that you won’t enjoy otherwise.
We invite the accounts of firms and individuals. Whether
you have a large or small amount on deposit you will receive
courteous attention, the Bank aiming at all times to give satis
faction to its patrons.
__
THE FIRST BANK OF CORDOVA
RESOURCES OVER ONE HALF MILLION DOLLARS
# *..
United States Depository for Postal Savings Funds.
Terr epository. Government Inspected.
Security—Service—Satisfaction
■ " .1 ■ *■ L - 1 . —" -J-JliUL L_!!_ IBLJ1UL-. -. ■■■■'■■ --
Manhattan Hotel
R. W. FERRELL, Prop.
Klectric Lighted. Hot Water. Turkish and Tub
Baths.
OPPOSITE CORDOVA GRILL, CORDOVA, ALASKA.
PHONE 99
, .... , ---
| Alaskan Hotel
THE HOUSE OF COMFORT
THE BEST EQUIPPED HOTEL
INALASKA |
BAR AND BARBER SHOP IN CONNECTION
Hot and Cold Water, Electric Bells, Electric
Lights, Steam Heat, Suites With Bath.
Bar in Connection £
•x •:*:
;X x
ROBERT QOTT8CHALK Proprlteor* ART CLONI NGr r’ :
| CORDOVA, .... ALASI.,.
ALL THE LIGHT ON THE BOOK,
and none in the eyes is what makes
the electric light so superior tor night
reading. And Its brilliancy bring* out
the type with the utmost distinctive
ness so that reading is accompanied
by no strain on the eyes whatever.
Have you electricity in your hornet
Cordova Power
Company
LIGHTS WATER PHONES POWER
Office: FIRST STREET.
,v n
I Copper River & |
| Northwestern Ry. |
II EFFECTIVE MAY 1, 1916.
| Three Trains Weekly Between Cordova and Chitina.
[ ;| Four Trains Weekly Between Chitina and Kennecott. 8
i § Leave Cordova, Second Street Depot, on Mondays, Thun- '$
days and Saturdays.
1 Leave Chitina for Cordova Sundays, Tuesdays and j§
ii Fridays.
| Leave Chitina for Kennecott Sundays, Tuesdays, Thur*- i;!;
days and Fridays.
8 Leave Kennecott for Chitina Mondays, Wednesdays, |
| Thursdays and Saturdays.
The above schedule subject to chaHice without notioe.
\<< niniM Car In Connection With all Regular Peatenger Trains P
tween Cordova and Chitina.
18 Freight received from 9 A. M. to 5 P. M.
Tickets on sale at Depot or up-town office, Alaska 8
§ Steamship Company building
I_i
|! Caleb Corser W. E. Brown
I
Superintendent Cordova A Kent
1 M
I he states, however, contended that
the laws prevent fraud only, and un
like the original Kansas type of blue
sky legislation, do not attempt to pre
vent unwise investments. Also they
contended that the laws do not re
strict or burden interstate commerce,
applying only to waics within the
states, and in preventing frauds upon
* their citizens are a normal, wise and
preventitive exercise of state police
powers.
Generally the laws provide for ex
aminations of securities, prospectus
and other information by state se
curity commissions, or other officials;
licensing of dealers, and penalties of
$t,tii)i> fines and one year's imprison
ment for violations. The Ohio law,
however, applies to sales within the
state of securities on property outside
of the state, the South Dakota and
Michigan laws applying to both. Also
the laws generally exempt certain se
curities, including those listed on the
stock and other exchanges, of na
tional and state bank, trust and build
ing and loan company securities; real
estate transactions, including mort
gages, secured commercial paper, In
i lading promissory notes; and are
aid not to restrict individual trans
actions The Ohio law, also does not
prohibit mail order sales.
Th.- twenty-six states reported to
have 1 due sky law restrictions are Ari
zona, \rkansas, California, Connecti
cut. Florida, Georgia, Idaho, Iowa,
Kansas, I .ouisiuna, Maine, Michigan,
Missouri. Montana Nebraska North
i arolina. North Dakota, Ohio, Oregon,
South Carolina, South Dakota, Tennes
see, Texas, Vermont, West Virginia
and Wisconsin.