Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-06-25
BOGUS INVESTMENT SCHEMES


Insurance leaders declare that in particulars
the existing statute fails to protect either the leg
mate company the individual investor and that
it really opens wide the way for financial piracy.
lust what these defects are need not now be
pointed out for that is the purpose OF the commits
sion itself, but every observant business man is
aware that the states laws in this respect should be
thoroughly overhauled and readusted to practical
conditions. writer in the June number of Best's
Insurance News declares that citizens of Georgia
and of adjacent have induced during the
last few years to part with hundreds of thousands
of dollars for neatly engraved pieces Of paper called
certificates" He shows that under the present
regulation, rather lack of regulation, mushroom
exploiters may issue such certificates with no re-
sricon whatsoever to the disposition Of the pro-
ceeds from the sale of the paper This is but one Of
many laxities that should be corrected
The commission, it is understood has already de-
termined to recommend the establishment of state
insurance department separate from that of the
comptroller generals and provided with force OF
sufficient to make it's work thoroughgoing The
insurance commissioner would be empowered to ex-
anime companies, including fraternal organizations
and for cause, revoke their licenses. The creation
of this department would of itself be stride in the
right direction
It is to be hoped that whatever law or laws of
this character may be enacted they will take cogni-
of the general field or bogus investment propo
sitions Government authorities have calculated
that in the United States last year hundred and
seventy million dollars was lost in get-rich-quick
schemes There is to believe that of this
amount at least seven million was wheedled from
Georgia.
The smashing buccaneer of the gay old hardy
days is gone but his descendants still thriving
and they are far subtler rogues than any Captain
unoa Thau
adroitly keep just within the established law, in
deed they have developed an art of thievery so
fined that a number of states enacting special
laws for the public's protection Such statute
recently put into effect in Kansas The comptroller
general was authorized to examine scrupulousy all
concerns applying for a license and to refuse those
he considered unstable lacking in good faith The
result was that within single year only fifty out
of six hundred and fifty stock and bond companies
applying for licenses granted them. The fifty
who authorized to do business entered the field
unhampered by dishonest competitors and unclouded
by suspicion.
The fact is such laws are demanded not only in
behalf of the general public but also in the interest
of legitimate concerns How unfair is this to honest
business! The representative insurance companies
of Georgia and the representative investment COM
panies entitled to the states protection against
those motley Adventures bf finance whose sole pur
pose is to make away with booty.
AS matters now are in Georgia, an alleged COM
pany, matter how imaginary its capital or Sc
curity may be- secure license to operate sim
ply by filing application with the comptroller general
and observing few loose requirements AS conse-
quence the state has become easy prey to business
picaroons. "These bogus concerns" says a member
of the Atlanta Chamber who has investigated their
course, seldom invest the money they get for the
sale of securities and they never intend to mature
the stocks and bonds they sell. In fact they can
continue the payment of interest only so long as
they sell securities. They run smoothly enough
for while and then suddenly disappear from the
state, leaving the innocent investor in the lurch"
law to prevent such practices is sorely needed
in Georgia. 1t is to be hoped that the BILL or bills
the legislative commission presents will cover all
these problems and will be promptly enacted by the
general assembly.
$4,000 found Mexican battlefield" Allow dis
count for the Mexican dollar.
The first of cantaloupes has gone, which is
forerunner of many enjoyable breakfasts yet to come
The presidential year may or may not have any
thing to do with it, but the fact remains that the
Washington baseball team is in fourth place.
The reason it doesn't bad to a girl to
kiss man in the dark against her will is maybe he
wouldn't dare do it in the light.
1t will be up to the new president to reduce the
length of the presidential message.
The man who had the political result doped out
ahead of time is usurpng the place of the other man
who remarks on how hot it is
fer he of
Esopus and the morning plunges in the Hudson
The man who loses bet hasn't even the comfort
of being able to say that he knew all along what
would happen.
FtddLede-dee for Formerly