The Columbus journal., 1908-01-22

OF q sealed package containing its
bonds? Because fake investment op-
orators have found 1t profitable to
take every precaution to give the color
of legality to their acts: they have
found it profitable to hire shrewd legal
pilots to tell them just how far they
may 60 in a given direction without
running upon the reefs of the United
States post Ofhce's fraud order" or
upon the rocks of conspiracy"
prosecution. These pilots for the
fleets Of the investment pirates make
a professional study of the art of
steering their craft just outside the
line Of successful criminal prosecu-
ton. Take 1t in the incident which
have related: had these men been
prosecuted for falsely using the name
of the trust company or for obtaining
moneys by Misrepresentation (the
claim that the trust company was act
ing as trustee on the Brite e Fair Sc
curities), an able lawyer could have
made out of the trust" to transfer q
package Of unknown contents, a very
plausible defense. Again, the mining
company was able to make valuable
use OF the trust company's receipt for
the package by having facsimiles of
the receipt printed and distributed
among solicitors for the stock who
were canvassing persons not at all
familiar with legal documents-and
who. under the statements and argu-
ments of the agent, would see in the
receipt an acknowledgment that this
great trust company and its millions
were behind the securities of the Brite
& Fair Bonanza company.
So far as the writer knows, there
has never been a fake investment con-
cern exploited which has not tried to
steal moral support under the name
of some guaranty" trust" or '.secur-
tiles" company. In most cases, per-
haps. these companies are as thorough
fakes as the company which they are
supposed to guarantee, and are the
creatures and creations of the same
men. But SO many instances of this
shallow deception have been shown
up in criminal prosecutions that a
little variation has been found desira.
bic. Instead of owning a fake guar.
anty" concern. the explofters of the
fake companies have recently come to
regard it as a better practice to claim
connection with some genuine com.
pany doing general trust business.
This brings us straight to the prac.
tical point in the matter: Never 90
into an investment until you first find
out for yourself. by direct and first.
hand Investigation. what the refer
ences" named in the literature or ad-
vertising matter of the company have
to say about it. and also how much
the references themselves amount tn.
Promoters of wildcat investment en-.
terprises have used hundreds of names
as references which they had not the
shadow of right to use-calculating
that persons credulous enough to be
interested in the proposition would
also be credulous enough to say these
references will speak well enough for
the enterprise. else their names would
not be given out for this purpose"
and to act without making any in.
Quiries of them. Again. some man Of
prominence and great faith may have
been. at the start. 4 believer in the
enterprise and willing to say, within
certain limitations. that he believed
the venture could be made a success II
cOnductod accordiu~ IN cor&o;r D1oue
and under given restrictions. This
does not signify that he will continue
to retain that confidence or that he
is willing to be understood as giving
the venture his unqualified endorse
ment' or to say to the public which
respects his name and positiNn: Come
and share this enterprise with me:
put your money into it. for it's q
good thing" Eut you may be sure
that his name will always be used to
create this impression IL there has
ever existed a shadow of warrant for
using it. under whatever restrictions.
Therefore. take nothing for granted
with regard to references or other
names which appear in the advertis-
ing matter of concern which applies
to you for the privilege of spending
your savings.
But let me place special emphasis
upon the crafty use which these COM
panies make Of the names and the ser.
vices OF equitable trust" companies.
use the word services" because a
in connection with bonds. %+ocSs