 There appears to have been a company reorganization in early 1913, and in March two representatives from the parent company, including chief electrical engineer Árpád Németh, were reported in town to give technical advice.But as with its New Jersey predecessor, the Portland enterprise was in trouble.During the summer, Oregon Corporation Commissioner R. A. Watson stepped in, and, under provisions of the state's "Blue Sky Law", barred the Oregon Telephone Herald from doing business, stating that "There was no question about the honesty of this concern, but the scheme isn't practical, and while it might be popular for a short time it would be a failure in the end; therefore, we refused them a permit to sell stock."