Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1904-03-14
ENFORCE THE LAW
CONVICTION OF ENGLISH PRO.
MOTER AN OBJECT LESSON.
We Have Statutes in Plenty In This Country.
But Are Short on Officials With Sufficient
Backbone to Enforce Them.

The conviction OF Whitaker Wright,
the English promoter, has attracted con-
siderable attention in thi- country. The
Chicago Tribune directs attentio On to the
fact that Wright was convicted under
what is known as the larceny act. The
1899 balance sheet of Wright's company
showed an item OF "$2 SOC, 900 cash at
bankers" This sum was presumed to
be available for dividends, and was
represented as being the result OF a
years work by the directors to strengthen
the company. A few days after this re-
port had been made it developed that
there was no cash in the hands of the
bankers, and that Wright was required
to lend the company 81 100000 to save
it from insolvency. The $2,50O,0 900 item
VAS sham.
Commenting on this showing the
Tribune says:
"There have been instances in this
country where false reports of the condi-
ton OF companies have been given to
the public by men who knew them to be
false, and whose object was unquestiona-
bly, to induce persons to invest in the
sc curities. In one case company was
credited with 100000 which it did not
have. A the statement OF the company
was certified by accountants to be cor
rect. the public had some reason to be.
lieve that it could be trusted.
"Persons who have been deceived and
defrauded by false prospectuses and re-
ports and doctored accounts can begin
civil suits for damages against those who
have despoiled them, tn ough their
chances OF recovering anything are
small, but why cannot the criminal law
| be invoked here as it has been in Eng
land to punish swindling promoters ?
| II some American member Of the fra
ternity could be visited with as severe a
sentence as the one Whittsker Wright
escaped only by suicide. there would be
fewer attempts to float fraudulent enter
prises."
These are good suggestions, and the
Tribune might have directed the Roose-
welt administrator attention to some
Instances in which it could make ex-
periments along this line.
In Chicago, recently, two men, known
as the JAEGER brothers, were arraigned be.
fore federal commissioner on the charge
OF having sent through the mails certain
circulars, in which circulars they mis-
represented their mining properties. II
was announced that the government
would vigorously push the prosecution
in these cases.
But it seems that the manipulations o
the shipbrldng trust misrepresentet
their properties and frequently used the
mails for the Purposes of such misrep
reservations. Yet, it does not seem t
have occurred to anyone connected
with the federal administration that the
criminal law should be enforced agains
the men responsible for the shipbuild
ing trust scandals.
The Roosevelt administration has, il
several instances, commenced civil pro
ceedings against men who have violated
the Sherman antitrust law; but thu
chief feature OF that law ia the crimina
provision, and it does not seem to have
J occurred to anyone connected with thu
Roosevelt administration that the Grim
inal clause was made to be enforced.
: The Tribune might do service In it
party, as we'll as to the people generally
if it could persuade the republican ad
, ministration to undertake the enforce
ment of the criminal law against tn
rich rasc ais OF the country.