The Washington herald., 1913-08-02
PROFESSIONAL EASY-MARK.
Doctors, and Teachers
Need sound Banking Advice.

Copynght. 1915, BY c. NJ Keys. New YofkD
By chance it once fell to the lot Of the
writer to investigate an industrial COM
pany that was being fioated by means of
a prospectus that promised 80 per cent a
year dividends. The people floating 1t
were a brokerage firm in New York The
chief promoter. talking. as he thought. to
an inquiring investor. casually mentioned
the name OF a professional man of na-
t.onal reputation who had bought some
Of the stock.
Mr. X.," he said. made a thorough
investigation. He is a man of large
means, and had ample opportunity to
make this investigation very complete.
He Is one of our best satisfied stock
holders. We do not use his name in the
prospectus, but 1 do not mind telling you
Of his participation
1t happened that Mr.. r. was a friend
of the writer. When he was asked about
this alleged investigation. he said. very
frankly. that he had bought some of
this stock. He had paid for it IS cents
share 1t was being offered to the public
at 81. He added, very naively. that the
broker had given him a written agree
ment to repurchase the stock from him
in six months at 50 cents share. or a
that his name was being used to induce
investors to buy the stock at 81 a share,
he was very much shocked indeed. As
the details Of the while plan were laid
before him, and it appeared that he was
nothing in the world but a stool pigeon
to lure innocents into traps. he became
first Inundated and tnen furious: then
began to ,alk of vengeance through the
law.
As a matter of fact, he had no rem
edy. His humiliation, which was very
complete, was part OF the price he paid
for his stupid blunder. There are doz-
ems of instances on record where per-
fectly honest men of this type have
become catspaws to pull chestnuts out
of the fire for crooked promoters of
every type. Ministers, eminent physi-
clans State and government officials.
officers of the army and navy. college
professors, and scientific experts of
all classes are the finest bait known
to catch fish in this particular sort of
a river. The limit was reached, per-
haps, when a retired. missionary from
China allowed himself and his wife to
be appointed vice presidents of a min
ing company with claims in Man
churia, the stock of which was sold
almost exclusively to ministers Of the
same thhooShobS NhC
United States.
1t has often been wondered why It
is that the professional man, who Is
well educated and well trained in his
particular field. falls an easy victim
to crooked finance. 1t seems to be a
fact that there are very few doctors.
ministers, and professors who have
ever had much money to invest who
have failed to accumulate more than
their due proportion Of worthless Sc
curities.
From experience It may be said that
the reason for the prevalence Of this
disease. II 1t may be so called. among
professional men are two in num-
ber. They seem to be exactly opposed
to one another. More professional
men fall into crooked finance because
of an overwhelming anxiety to get
very large returns from their So
called investments than from any
other cause. They have worked hard
for their money and have accumulated
IL by slow process. They see that
other men who have been in business
have made a little moHey go a long
way and perform financial miracles.
They think that they. too. can do the
same thing. forgetting that where the
Judgment Of a business man IL q first
hand Judgment. their own must be
second hand, because they have no
business experience themselves. and
are obliged to proceed on the estimates
of others.
The second reason is less important
and less general. Men engaged in pro-
fessionsl pursuits are frequently of
very impractical character and are in
different to questions of business and
finance. They are apt TO be careless
about money matters. They hasten to
get such matters on their mind and
plunge. with apparent carelessness.
into the FIRST promising thing that
comes along.
tors. and college professors makes
choice picking for most kinds Of pro-