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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Aug. 11, 1921)
THE BEE: OMAHA, THURSDAY, AUGUST 11, 1921. Hbagland Makes Reply to Attack By State Bureau Says He Opposed Blue Sky Law Because of Ineffective ness; Charges Touvell With Incompetency. North riatte, Neb., Aug. 10. (Spccial Telegram.) Replying xo attacks made Monday by the state bureau of securities that he had crippled alleged attempts of the state administration to., check wild cat stock selling- schemes. Senator W. V. Hoagland of North Platte asserts that his opposition was due to inefficiency of the proposed blue sky laws and incompetency of the present bureau. Senator Hoagland's reply in part follows: "My. attention has been called to the statements of Guy T. Touvelle, chief of the bureau of securities, with reference to the operation of blue sky laws in -Nebraska and in ferring that I was responsible for the frauds that have been commit ted in Nebraska by the sale of wild cat stock because of my connection with the blue sky legislation in the 1919 and 1921 sessions of legisla ture. No Specific Change. "11 mat-ce nn sneeific charce and it is apparent that he desires to 'pass j the buck' to someone else for the f responsibility of his -department .n permitting wildcat stock to be sold within the state (ind his failure to cause prosecution where the law had been violated, "In fact I represent large clientage who have been defrauded in- the sale of wildcat stock and I have been endeavoring to get the department to prosecute parties for a violation of the blue sky law,' but to no avail. Other attorneys have been attempt ing to do the same thing. We have been trying to get them to prosecute the higlier-ups. but to no avail. Says Departments Responsible. "We have had in operation in the state of Nebraska during the past six years a blue sky law which at all times permitted the railway commis sion and the bureau of securities to exercise thgir, discretion and! to re fuse to grant :permits to" any in dividual for the sale of stock where the application convinced the bureau or railway commission that it was inadvisable to issue the permit. The provision of the law placed the re sponsibility .upon these departments for the issuance of permits to persons and corporations who should not have them and they cannot escape the inefficiency of their examination and the recklessness in the issuance of. permits by attempting to "pass the buck" to some legislator who has opposed their ideas in the pas sage of legislation. 'When the average stock salesman can go to the individual and. tcH. him that he has been interviewed by the bureau of securities and the burcau . . ' . . J ..1.. .lt!n v4a.a!.P is nas permuica 115 aic, .ui.u.w 17 places the responsibility behiiliMhe ( state for the sale or spurious stock, and it cannot avoid : this ; responsi bility. , ' . Unwilling to Kill Bureau "The executive ' department recbg n7Pn this situation, but was unwill ing for the good of the , state to abolish the bureau, because a lot of people woiild.be left off the state's pay roll So they attempted to fix up a law providing that the investiga tion shall "be made by the state and the license issued, but the stock salesmen shall not be . permitted to have possession of the license, which - is ' th letter of credit . However, when the stock, salesmen can read the law to the stock purchaser and show .him. that -the investigation has been 'made and his license issued, it is 'more effective than the old certifi cate which the salesmen carried and showed to the. purchaser and which had stamped across the face: 'The bureau of securities does not .rec ommend 'nor disparage investment in any securities licensed by it.' "To the cautious investigator, the statement stamped across the old li cense was a warning .for the in vestor to investigate, but now there is no warning under the so-called air-tight law. Permits Interference. "In addition, the present so-called blue sky law permits an officious, in competent and. - autocratic - bureau chief to interferewith nearly all of I . the common business transactions between'' competent .individuals to a greater ctent than does the bank i th hankihar dcoart- Ulg law - - , mcnt to . regulate and control the affairs of public banks, n any citi zen oi the state , will read carefully the present 'blue sky law , he; will find that nearly all of the elementary and common business transactions are within the control and may be supervised by the state bureau of . se curities. - t "A young, man who never trans acted any business in his life for 1 himself, who never, practically speak ing, made a dollar for himself and whose only qualification is( a Ne braska university diploma, heads the bureau. "I believe that Mr. Touvell wanted to push . into print. He wants some advantage and he thinks that he can give . himself a clean bill of health by merely charging some body else with the responsibility of the failures in his department. "Recognizing the failure of( the bureaucratic government at W ash ington arid the failure of bureau cratic government at Lincoln and in an attempt to protect investors in trl.- nnH hnnds who came to me for their" protection, I introduced in the last session ,of the legislature senate bill Jiu. .Protected Investor. "l is i trie' that my; bill repealed the then existing Diue sxy law, oui T nut in its olace a law which oro- lected the stock investor instead of spending $60,000 for a bureau of securities to provide a lot ot era- rtln-,' af vnn;e nf th state. "My contemplated legislation did , , not exempt any stocks or securities provided that every person, before 't th9l rrf ctnrWo within the- state. ' should: file an irrevocable power of attorney: wn tne secretary oj state authorizing' the service of the-pro cess in- all litigation growings out of the sale of stocks, it provided a penitentiary -offense forny person to sell stocks within the state with out the filing of this power of at torney. It provided a penitentiary sentence for any person to make any misrepresentation in any manner with reference to the stocks. "It made the principal absolute ly liable for any representation made by the stock salesman and removed the common-law rule of liability for deceit of agent. It provided that any contract made for the sale of stocks, bonds and securities before the law has been complied with, was void and for a recovery of money the party paid thereon. Provided Protection. "It. provided that suit .may be brought in any county m which the transaction occurred for recovery of fraudulent, contracts arid .the. serv ice of summons made upon the sec retary of state. It further provided that any note taken for stocks, bonds, or securities should be non-negotiabfe- and -that- the pleas of in nocent purchaser should not avail to any assignee thereof, and that Neville Free Of Blame in Frauds, Taylor Asserts Railway Commissioner Denies Having Cast Reflection on Former Governor At tacks Reed. the note - should have stamped across its' face: "This note is given for stock (jr. security and is non negotiable." It. made it a peniten tiary offense for any person, to take any such note thatdid not have this stamp upon the face. "I do not know why I should have been singled out "for attack by Mr. Touvell, except that as a legislator I refused to follow his advices and refused to subordinate my views to a bureau chief. Touvell spent prac tically all of his time on the floor of the senate working among the senators and committees in the in terest of the perpetuation of his job. No One Interested. "ThpiV was nn lobbv at Lincoln nrmo tVio lact session of the legis lature fighting the blue sky legisla tion or interlering witn it. in laci it appeared that there was no one interested in the legislation except ing the bureau chiefs wanting to perpetuate their- jobs. The horse had already been stolen from the barn and the door was closed. There was nothing for Mr. Touvell to do except to prosecute the violators who had violated the law and this he refused to do and has never done, but bis law, because of the repeal of the prior legislature , without the saving clause, prevented prosecution of anybody for. any crime in the fraudulent sale of';stock made prior to the passage of the present act. "I do not say that Mr. Touvell in tended to give. a clean" bill of health to all of thesfr criminals, but if he had not intended td do so it showed his incompetency. ,in drawing legisla tion when he drafted the law. with out protecting- the people- of., the state-of .Nebraska and it comes with very poor-grace for -him to .now, try and avoid the responsibilities for his failures by attempting to' "pass the buck" to someone who really at- . J tn An enmpthinc for the IClMyitu w " t - . people of the state and to avoid the- waste in the unnecessary cAycuunun. of the .people's money." Boy Bandit Captured After Theft of Auto O'Neill, Neb., Aug. 10. (Special Telegram.) Andrew Vandenter, 13, is in Holt county jail after a brief career as a bandit. Andrew started cn his career of crime,, it is alleged, by stealing a team, buggy and har ness, watch and $11 irom a. neigh bor near Ainsworth, Neb., his home. He drove the team to the ranch of Cedro brothers, South of Atkinson, where he joined a haying crew. He is accused also of having stele a Ford from Ole Hansen, nearby rancher, and was captured aoout pifrlit miles south of the scene of the theft and brought to O'Ncil. Tuesday h.'ght His parents and both the. sher.lt i ot iioit ana Drown counties list hi tn as mcorfig'bie and he will be sent to the retorm school. First Nine Days of August Five Degree Below Normal The first nine days of August were five degrees below normal tempera ture this year, according to the rec ords in the office of the federal weather'bureau. The normal temperature for the first nine days of August is 76. de grees, an average being struck. from temperatures taken every hour through the day .for the 10 days. Tuesday the highest ; point m Omaha was 87 degrees- A year ago it was 92. Lincoln, Aug. 10. (Special.) Charges and counter charges flying back and forth between state offi cers, ex-state officers and others re lative to responsibility for the loss of millions of dollars through fail ure of numerous "wild cat" stock selling concerns reached the follow ing new developments in Lincoln to day: U r. Tavlnr of the State Railway commission, who also was a member in 1919 before the state bureau 01 securities was installed, declared that the enmity of Senator Walter V. Hoagland of North riatte toward me blue sky law . dated a short time after the railway commission forced tViA Piotrins Packinflr ComDanV to state specifically just what several thousands of dollars recorded as ex penditures was to be used for. "Hoagland was connected with the Higgins plant and the railway com mission, which at that time had charge of stock sales permits, was obliged under the law to ascertain just what expenditures of large sums were intended for," Taylor aid. "It proved that the expenditures were legitimate and were for the creation of certain improvements, as . I re member it. From that time on Hoagland began jumping on the blue sky law." Taylor denied that he had laid onxr Mam fnr issuance of DermitS of certain "wild cat", stock selling. schemes on former Governor Keith Neville. , "Neville was not responsible for them," said Taylor, "and I never said he was. But if he wants to take responsibility for the acts of his attorney general, Willis Reed, that is his business. "It is some responsibility, however, as Reed's opinions certainly crippled us in handling blue sky manipula tions." , Guy Touvelle, head of the bureau of securities, declined to make any further statements today. "I am perfectly willing that the grand jury investigation at Omaha bring out just who is responsible for the pilfering," Touvelle said. It is expected that Touvelle and records of the bureau of securities will occupy considerable time in the proposed grand jury investigation. Will Resume Paving Work Upon Streets , of Kearney Kearney, Neb., Aug. 10. (Spcial.) The water works department is laying new mains on West Twenty sixth street, preparatory to paving that thoroughfore. Paving will be resumed here within a week, after be ing halted for several years. Con tracts already have been let for pav- mrr tVirna rlictrirti and twfl additional districts have been created and will be advertised shortly for bids. Hold Military Funeral. . Kearney.'NebAug. 10. (Special.) The funeral of Roy D. Knobel, son of Mr. and Mrs. David P. Kno bel of Elm Creek, was held Monday, with full military honors. Knobel was among the first Buffalo county men to enter the service and was under fire in the St. Mihiel drive and in the Argonne, where he was wounded September 1.1, 1918, by a bursting snrnnn el shell. He died three days later in the field hospital. Accident Caps Climax Of Unusual Hard Luck Grand Island, Neb., Aug. 10. (Special Telegram.) Samuel E. Joseph of Chicago and his wife, who are lying in a hospital here pain fully injured, as the result of a col lision on the Lincoln highway late yesterday, tell a rather unusual story of hard luck. Joseph states that they lost all of their four children within the past few years, two from pneumonia, one from measels and one from diphtheria, and that last year they lost almost their entire ac cumulations of $14,000. They were on a trip looking for a new location when the accident happened. Omaha Rotarians to Be Guests of Club in Bluffs Omaha Rotarians have been in vited hv the Council Bluffs Rotary club to its annual fish dinner picnic, Friday, at 2:30, at the Iowa School fr the Deaf grounds. William Cop pock of Council Bluffs, former dis trict governor and just back from the international convention in Edinburgh, Scotland, and District Governor Luther Brewer will be the chief attractions among base ball and volley ball contests and other athletic events. Animal Industry Chief Resigns State Position Lincoln, Aug. 10. (Special.) The resignation of Dr. W. T. Spencer, chief of the state bureau of animal industry, was presented to Governor McKelvie yesterday. Dr. Spencer stated that salary, of $3,000 a year paid by the state was inadequate and that he had accepted a more lucra tive financial position with the Oma ha Live Stock exhange. He enters .the employ of the Omaha exchange September 1. Will Reduce Electric Rates at Hastings, Neb. Hastings, Neb., Aug. 10. (Special Telegram.) The city electric de partment announced today that plans are being made to reduce electric current rates about 10 per cent by the end of the year, due to prospec tive reductions in costs. The gas company has also planned to make some reductions in gas rates in the near future. South Entrance To Yellowstone Will Be Opened Dedicatory Services to Be Held At Two Gwo Tee Pass August 21; Hundreds of Visitors Expected. Southern entrance of Yellowstone park will be opened officially Au gust 21, according to an announce ment yesterday by Horace M. Al bright, superintendent of the park. Dedicatory ceremonies will be held at Two Gwo Tee pass, named by Indians, situated halt way Detween the park and Lander, Wyo. Secretary of the Interior Fall, now on an inspection trip of national parks, is expected to attend the op ening. Other prominent men who will be present are: Stephen T. Mather, director of national parks; Horace M. Albright, superintendent of Yellowstone park; Senator John B. Kendrick, Governor Robert D.. Carey and ex-Governor B. B, Brooks of Wyoming; Patrick Sul livan, Casper, Wyo; W. C. Deming, Cheyenne, Wyo; Emerson Hough of the Saturday Evening Post, and representatives from other national publications, and officials of the Northwestern railway. Indians to Entertain. The party attending the ceremo nies will gather at Lander, August 19. Indians in their native haunts on the Shoshone reservation will furnish part of the entertainment for the guests. Two hundred automobiles will leave Lander the morning of August 20, spending the night in the moun tains where special entertainment will be provided. The journey will be continued in the morning of Au gust 21 and the dedicatory cere monies will be held at 11 at Two Gwo Tee pass, overlooking the fa mous Teton mountains and Jack son lake. The Lander party will be met at the pass by a large number of per sons journeying in cars from the park to attend the opening. All guests will spend the night at the Lake hotel, where a special program will be given. Seek Tourist Business. Northwestern railroad officials plan to extend passenger tourist bus iness from Chicago to Yellowstone park via Lander next season. Hun dreds of cars have made . tne trip over the Lander road in the last month and have experienced no. dif ficulties. Tourists who have gone ove the route have described the scenic attractions as the "Alps of AnipnYa " which' thev sav. excel any thing in the park. Three crews are now putting the road in nrst-ctass condition for the opening. The ceremonial caravan will leave Denver August 18, traveling over the Rocky Mountain highway, offi cial road to the southern entrance of the park, via Fort Collins, Laramie, Rawlins, arriving at Lander August 19. Tourists parties will join the caravan en route. A motor that can be connected to any house-lighting socket has been invented or operating player pianos electrically. Family at Holdrege Will Be Departed The family of Mr. and Mrs. Hjal- mcr Swanberg of Holdrege, Neb., is involved in a strange tangle with the immigration laws between the United States and Canada. Immigration Officer W. M. Brah scar of this city has gone to Hold rege to arrange for deportation of Mrs. Swanberg and three children to Winnipeg.1 -.1 ., ,. Swanberg, born in Holdrege, ac quired citizenship in Canada, where he took up a homestead claim. He sought to cross the border, giving fictitious information and later was arrested at Holdrege by Canadian authorities. Man Thought Killed in Auto Wreck Is Found in Denver Denver, Aug. 10. Roland R. Ma son, Idaho Falls, Idaho, business man, supposed to have lost his life in a motor car accident near Web er, Utah, was found in Denver last night. He announced he finally hto been able to remember he was Ma son. Previously he had declared he could remember nothing before ni arrival in Ogden a week ages when you use EAGLE BRAND CcadensedMilk Road Conditions (Furnished by Omaha Auto Club.) Lincoln Highway, East Roads good to Denlson. Lincoln Highway. West Detour Klk horn to Valley, rough Fremont to Colum bus. Weit of Columbus roads are fine. O. L. D. Highway Rough at 'Ashland, detour Greenwood to Waverly, West of Lincoln roads are fine. Highland Cutoff Roadi a Utile rough. S. X. A. Road Roads good, detour one and one-bait mile between Seward and Tamora. George Washington Highway Take High Road to Blair, good to Sioux City. Black Hills Trail Road -work, Omaha to Fremont, roads good, Fremont to- Nor folk. King of Trails, North Roads good. King of Trails, South Roads fine. River to River Road Good to Dea Moines. ' White Polo Road Excellent f to Dea Moines. ' Blue Grass Road Rough. Glenwood to Malvern, roads east of Malvern fine. WHY DO YOU CODDLE CORNS? A Simph Touch Can End Them and At Once Why pare a corn and keep it? , Why pad it and let it remain? Or why treat it in old ways, harsh, crude and uncertain? Millions have found a new way. It is Blue-jay the. plaster or the liquid. A touch applies it, and the pain stops instantly. Then the whole corn quickly loosens and comes out The way is gentle, scientific, sure. A famous expert evolved it A. world-famed surgical dressing house produces it. In it freeing thousands of people -why not you? Try it on one corn and you will always let it end yours. Start tonight. your druggist has Liquid or Plaster Blu eiay Stops Pain Instantly Ends Corns Quickly ' PIANOS TUNED, AND REPAIRED Av HOSPE CO. 1313 Douglas St. Tel.' Doug. BBSS mil mi Shirt Sale 100 dozen high-grade Dress Shirts, $3.50 value, . union made, sixes 14 to 17, on sale $1.95 J. Helphand 314 N. 16th St. Union Outfitting Co. Offers All Its Sample Dinner Sets at Half and LesvSatnrday Positively the Biggest VaU ues in Dinnerware Omaha ' Has Known in Months. Although fall housecleaning for many of usis- several weeks away, the Union Outfitting Co. announces that it has been cleaning house in Its China De partment and the result is a Sale of fine Dinner Sets Saturday at notable reductions. Complete, sets of Liberty Bell, Statue of Liberty and Peacock patterns are. offered in addition to sets that, have one or more pieces missing. As always, you make your own terms. '. - rAdvertisement 1 : ; a ' I II Series 21 Special-Six tjM.A " in " ii ii inr mil iM'im Fivm-Pcuwrnngtr. 50-hortm- mmammmwmmmmmmammmmmmmmm SBSSSMSBSSSBBlassSBSSSSllssl iKiswr. 1 19-inch whmalba 1635f..kvItaroit - NO other factor than public appreciation or tne SPECIAL-SEX spread mouth-to-mouth fashion by prideful owners, could account for the unques tioned popularity that it enjoys today. For this unusxtaf car is a member of the Studebaker family of cars whose production and sales, during the first six months of 1921, exceeded those of every other automobile manufacturer in the country with the exception of one manufacturer of a ,well known and very low-priced car. This is a Studebaker Year O. N. BONNEY MOTOR CO. 2554 Farnam Street ; Phone HA rney 0676 NEW PRICES OF, STUDEBAKER CARS f. ot. &. Factoriem, effective Jane 1ft, 1921 Tomring Cara and RotuUtarm ucHT-srx i-pass. roadster;. SISOO UCHT-SiX TOURING CAJt IMS SPECIAL-SIX 2-PASS. ROADSTER ............ 1585 SPECIAL-SIX TOURWG CAR : . 1S3S SPECIAL-SIX 4-PA53. ROADSTER . ............. 1633 BIG-SIX TOURING CAR IS3 Cacwa and Smdans UGHT-SIX COUPE ROADSTER LIGHT-SIX S-PASS. SEDAN 1995 SPECIAL-SIX 4-PAS3. COUPE 2450 SPECIAL-SIX 5-PASS. SEDAN 2SSO BIG-SIX 4-PASS. COUPE 250 BIG-SIX 7-PASS. SEDAN. 50 ALL STUDEBAKER CARS ARE EQUIPPED WITH CORD TIRES . 7- -1, r T H I : " v.:,- M PORT ANT Concrete Examples of Savings Possible During Our August Sale of Furs We invite fur comparison in fact we suggest that you probe around a bit for we know that your choice will revert to this store. You have a .right to expect first quality skins, expert workmanship and authentic style We see that you get it, when you come here. ' $315.00 Hudson Seal Coat At $210.00 . Fine quality Hudson Seal, 36 Inches long, large . shawl collar, deep cuffs and belt. $270.00 Hudson Seal Coat At $180.00 30 Inch Hudson Seal Coat, dependable quality, large storm collar, cuffs and belt. s ... , $652.50 Siberian Squirrel Coat At $435.00 10 inch Siberian Squirrel Coat, first quality natural skins. Big collar and deep cuffs. Belted model. $395.00 Mole Coat At $263.34 Elegant Mole Coat, cut very full, 40 inch length, large shawl collar. Belted model. Sincerity- There is no discount on what we say in type binds us to stand by particular. $675.00 Hudson Seal Coat At $450.00 Full ripple back Hudson Seal Coat Collar, cuffs and wide border of skunk. First quality! $750.00 Mink Cape At $500.00 30 inch Eastern' Mink Cape. Cut full and trim , rued with tails and .paws. $262.50 French Seal Wrap At $175.00 ' 45 inch French Seal Wrap. Splendid quality, large collar, deep cuffs and belt. $322.50 French Seal Coat At $215.00 Full 45 inch length. French Seal Coat. Shawl j collar, and deep cuffs. Belted model. say in black and white. What we every word and keep it in every The Store of Specialty ShpfiSi 7