Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-12-26
Capital Issues Committee An
nounceS That Schools Have
Been Founded to Educate
Statesmen in Trade,
GLASS WILL ASK
CONGRESS TO ACT
Secretary of Treasury Also
Declares He Will Not HeSi-
tate to Call Commission to
Resume Its Control
LaY noaalne IouRnAL sptelAL .eAseO wlssl


Washington, Dec. 25.-The capital
issue commission of the treasury, the
governments war agency for the sup
preston of unessential security issues
announced tonight that It would sus-
pend activities on December 81 and
remain inactive until dissolved unless
called back into service by depart
ments.
Accompanying the announcements
were warnings to the public both
from the committee. and Secretary
Glass of the necessity for continued
strict economy and against worthless
securities. The committee stated its
intention of making supplementary
report TO congress recommending a
law to prevent impositions upon the
investing public, and Secretary Glass
said he would ask the present con-
gress to enact such legislation imme-
diately. To illustrate the extent of
the menace, the committee std
scn6ois we're Beng estauasmGu d GlIn
statesmen in the art OF fraudulent pro-
motion.
Charles S. Hamlin. chairman, made
this statement for the committee
"In view of the rapid changes that
have taken place since the signing of
the armistice, the capital issues COM
mittee has voted to SUSPEND its activi-
ties on December 81. The committee
will not be dissolved but viii remain
inactive, unless it IS found that the
sale of new securities competes un-
duly with government financing or
for other reasons it may become de-
sirable for the committee to resume
its work, pending its dissolution by
IL. sAf
Do Not Waste Capital.
although the war emergency
which gave rise to the creation of the
committee has passed. It is neverthe-
less imperative that capital should be
saved and not wasted. and the re-
moval of the restraining influence
exerted by the committee during its
existence should not be construed as
approval of the financing of unneces-
sary public projects or private enter
prises of doubtful merit. On the con-
trary, the financial needs of the gov
ernment and the large capital require
ments of the railroads and for the re-
adjustment of American industries to
a peace basis compel strict economy
in the use of new capital
while legitimate business may
safely be left to work out its own
problems, the capital issues commit
tee feels that it would be unfaithful
to it's responsibility if it failed TO warn
the public respecting the enormous
losses sustained by the nation through
the sale of worthless and fraudulent
securities. In the opinion of the com
mittee the sale of such securities
should be restrained in times of peace
as well as in war and strongly urges
that congress establish adequate. ma
chinery to put stop to this traffic.
Schools TO Drill statesmen.
'"The extent of the menace. due to
the issue of such securities, to the
holders of government bonds is re-
vealed hv the fact that schools are
being established in some parts of
the country to drill statesmen in the
art of persuading investors to sub
scribe for unmeritorious or worthless
securities. This can only be prevent
cd by legislation vesting in some duly
constituted public agency full power
to restrain the offering of fraudulent
or worthless securities.
"The capital issues committee
warns the public and earnestly directs
the attention of congress to the prob
lem. 1t is the intention of the COM
mittee to make a supplementary re-
mort to congress recommending a law
to prevent these existing abuses and
such impositions apon the investing
public.
THE committee will maintain its
offices in Washington until further
notice.
Glass Joins in Warning.
Secretary Glass statement follows:
THE decision of the capital issues
committee to. suspend its activities on
December 81 should not be interpret
ed by the business public as a war
rant for any expenditure of capital
for needless or unwise purposes,
SS--~.~,<>~~~-~~~
IContinued on Page Two.)