BARNEY JOHNSON AND CO. SECURITIES PERMIT REVOKED BY STATE EFFECTIVE JUNE 8
Barney Johnson and Co. SecuritiesPermitRevoked By State Effective June 8 Seven Reasons Given for Action Against Company The state securities department las', week revoked the securities dealers'...
...In revoking the firm's license, the department -said the company did the following: 1. Violated the state set-unties law...
...I invite your earnest attention to the evidence regarding defendant Crofoot," the court told the jury...
...Joseph McDermid...
...Wolf man to Hun for Sonata Seat HENRY Wolfman, Ashland business mini and former city councilman anil heulth officer, announced lust week that he will seek the Progressive nomination for state senator In the 12th district...
...This is not to be construed as authorizing respondent to solicit or carry on any new business within the slate of Wisconsin from and after the time of receipt of a copy of this order by respondent...
...who was elected as « Progressive but supiKirtrd the Hnl administration) in major Issues in ihe 11)39 legislative session...
...The company also failed to make monthly reports to the state of sales marie within the state a* lequirect by law and made material misrepresentations, the department said...
...business...
...The department also found that the company sold shares of Chicago Molded Products Corp...
...Raising of millions of dollars in sales tax would permit the Republicans to grant even bigger rebates to corporate wealth than it has during this administration...
...on Mar...
...Of the sale of Trane stock the company made an excess profit of $34,000 from Wisconsin residents, the department said...
...The company maintains branch offices in Madison, Milwaukee...
...Ilr's in a different |x<-sition than any of the other defendants...
...As to solvency, Judge Briggle defined It as "the ability to pay debts as they fall due in the normal course o...
...Judge Briggle gave them three forms of verdict for each defendant...
...SecuritiesPermitRevoked By State Effective June 8 Seven Reasons Given for Action Against Company The state securities department las', week revoked the securities dealers' license of Barney Johnson and Co...
...stock, through manipulation with The Credit Corp...
...25 1937 sold to 410 Wisconsin residents 25,527 shares of Trane Co...
...Since the administration personnel was changed by act of the 1939 legislature our previous practices have been abandoned and we have made a good faith attempt to comply with the law...
...in excess of the price permitted by the state and made an excess profit of $6,343 from Wisconsin customers...
...Consequently, in spile of all this, we should be permitted to retain our securities dealer's license and to suspend this privilege would amount to the use of administrative processes in a punitive rather than in a regulatory manner...
...the department said...
...Have New State Trade Mark for Grade 'A' Eggs A state brand trade mark for grade A egi(s has been adopted by the state department of agriculture tor the use of poultrymen producing eggs of this quality In Wisconsin, according to C. Howard King, head of Ihe department's poultry and egg marketing division...
...1939, the company sold to 650 individuals in Wisconsin 14 different issues of non-registered securities in violation of the law...
...Eau Claire, La Crosse, Green Bay, Appleton, Manitowoc and Ashland...
...Effective June 8 In explaining why the revocation order would not become effective until June 8, the department said: "The effective date of this order is postponed in order to enable respondent legally to complete In Wisconsin presently pending .securities transactions with customers and others...
...He charged that the present Republican administration has deliberately paved the way for inauguration of a sales tax program if returned to power in the general election...
...In a statement filed with the department, the company said: "We openly concede that during the past several years we have been guilty of committing all of the violations of the Wisconsin securities act with which we are charged...
...Urging the jury to "let your verdict speak the truth, basco on the evidence in this case...
...If he acted out of loyalty or obedience to his employers, and without the knowledge of any scheme, he would not be knilly of the charges In the indictment...
...4. Engaged in unfair and inequitable business practices...
...and no purchaser of securities has been injured by our conduct...
...The order goes into effect at noon June 8. Action was taken by the department following a public hearing May 22 at which the company admitted violations of the state securities law but asked leniency on the grounds it would commit these violations no more...
...A considerable portion of Judge Briggle's charge to the jury was devoted to Crofoot...
...Nelson declared In citing nearly $4,000,000 in tax relief voted large estates, utilities, and telephone companies by the Heil administration...
...Philip E. Nelson, Maple, candidate for the Progressive nomination for governor, warned In an address before ihe Sawyer County Progressive club last week...
...3. Made material misrepresentations to and uithhelcl and concealed material facts from said agencies...
...7. Took unralr advantage of customers In securities transactions...
...The department found that the company used The Credit Corp...
...1, 1941, with six months of the fiscal year slill to go after that...
...He pointed out that the government's evidence against Crofoot was circumstantial in part, and that character witnesses for Crofoot might raise a reasonable doubt as to his guilt...
...The first was a verdict of guilty on all counts, the second not guilty on all counts, und the third called on the jury to give a verdict of guilty on specific counts and not guilty on the others...
...Iifldysmith...
...The 12th district embraces Ashland, Iron...
...No changes will be made at this time In the rules governing egg grading In Wisconsin, he said...
...6. L'sed practices in the sale of securities that tend to work a fraud on the purchasers...
...GOP Wrecking State Finances, Nelson Warns HAYWARD, Wi».—Wisconsin faces the biggest deficit in its history, State Sen...
...Labels In two s:zes to fit on the ends of 30-dozen egg cases and on the ends of one-dozen egg cartons will be furnished by the department at cost, King said...
...The surrender of the company's license and the bankruptcy were not in themselves proof of solvency or Insolvency, the court warned...
...Speaks For Crofoot Judge Briggle also cited testimony that branch managers and salesmen were under direct orders not to make misrepresentations...
...At the May 22 hearing the company had admitted making excess profits of $40,000 from Wisconsin residents by unlawfully selling securities at a higher price than permitted by the stale...
...If you linil that there was a fraudulent scheme you must consider whether Crofoot knowingly participated therein...
...stock at more than a 10 per cent commission in violation of the law...
...But the securities "short," Judge Briggle told the jury...
...of Ashland, an affiliate, to make 'pretended" sales so that the law could be circumvented...
...8. 1935 to October...
...act is a difficult and complicated piece of legislation, its administration and enforcement at times in the past bas been lax...
...The department found that the Barney Ji.hnson Co...
...The seat Is now occupied by Son...
...At the public hearing the Barney Johnson company made a sensational admission of its guilt...
...Nelson said the state would be broke by Jan...
...Violated lawful orders of the public service commission, the banking commission and the department of securities...
...Fonnlmore, alternate Juror who had sat with the 12 regular Jurors tn replace one of them In case of illness...
...Price, Rusk, Sawyer and Vilas counties...
...A balance sheet alone is not conclusive as to solvency," he said, "and the jury must also consider the reasonable belief of the defendants as to solvency or insolvency...
...Judge Briggle's hist art before sending "One Jury to deliberate whs 1<i dismiss Carlos Elselc...
...The present regulations have stood the test for seven years, he pointed out...
...5. Sold securities In non-conformity with express conditions of registration thereof...
...From Sept...
...Chicago firm with branch offices in Madison and other Wisconsin cities...
Vol. 10 • June 1940 • No. 24
