Arizona republican., 1918-12-26
CAPITAL ISSUES COMM M|SS|0N |S
 THROUGH DEC. 31.
Dissolution Has Strings Tied
 To oIt-In Event Of Fraud ,ulent Financing, Will Be
 Reassembled - Warning Issued To Public To Be ware Worthless Securities
tRepubIican A. p. Leased Wire1

TRepubIcan A. p. Leased WreI
 WASHINGTON, Dec. 25.-The cap1- tai issues commission of the treasury, the governments war agency tor the suppression of uneSsential security is sues. announced tonight that it would suspend activities on December 3l, and remain inactive until dissolved, unless called back into service by depart ments.
 Recommending the announcements were warnings to the public, both from the committee and Secretary Glass, ot the necessity for continued strict econ omy and against worthless securities. The committee stated it's intention ot making a supplementary report to con- gress. recommending a law to prevent impositions upon the investing public, and Secretary Glass said he would ask the present congress to enact such leg islation immediately. To illustrate the extent of the menace, the committee said schools wre being established to drill salesmen in the art of fraudulent promotion.
 Charles S. Hamlin, chairman, made this statement for the committee:
 Tn view of the rapid changes that have taken place since the signing ol the armistice, the capital issues com mittee has voted to suspend it's activl- ties on December 31. The committee will not be dissolved, but will remain inactive, unless it is found that the sale of new securities competes unduly with government financing or for other req sons it may become desirable for the committee to resume it's work, pending it's dissolution by the president or by operation of law.
 War Emergency Passed
 Although the war emergency which gave rise to the creation of the commit tee has passed, it is nevertheless im- perative that capital should be saveo and not wasted. and the removal of the restraining influence exerted by the committee during it's existence should not be construed as approval of the fi- nancing of unnecessary public projects or private enterprises of doubtful mer- 1t On the contrary the financial needs of the government and the large capital requirements of the railroads, and for the readjustment of American indus tries to peace basis. compel strict economy in the use of new capital. While legitimate business may safe " be left to work out it's own problems the capital issues committee feels that 1t would be unfaithful to it's responsI- pliltles if It failed to warn the public respecting the enormous losses sus- tanned by the nation through the sale l Of worthless and fraudulent securities. In the opinion of the committee, the sale of such securities should be re- 1 strained in times of peace as well as In war and strongly urges that con- gress establish adequate machinery 1o put a stop to this traffic.
 1 The extent of the menace. due to tho issue of such securities, to the holder, | or government bonds is revealed by inc 1 1act that schools are being established In some parts of the country to drill statesmen in the art of persuading in Vestors to subscribe for unmeritorous or worthless securities. This can only De prevented by legislation, vesting in some duly constituted public agency tull power to restrain the offering 1r 1 fraudulent TT worthless securities.
 Public Earnestly Warned
 The capital issues committee warns the public and earnestly directs the attention of congress to the problem. If | IS the intention of the committee to make supplementary report to con gress, recommending a law to prevent these existing abuses and such impo- sltlons upon the investing public.
 The committee will maintain it's of flces in Washington until further mo- tice."
 Secretary Glass statement follows.
 The decision of the capital issues I committee to suspend it's activities on l December 31 should not be interprete.; by the business public as a warrant for any expenditure of capital fo, needless or unwise purposes. whethe, public or private in their nature Should it become apparent that volun. tary restraints are not being exer- 1 cised, so as to prevent the misuse o | capital, I shall request the committe, to resume it's control
 Glass Also Dubious
 My chief misgiving in accepting tn, action of the committee arises out O the need the committee has frequentl, expressed, and the importance O which has become increasingly ob vious, of protecting the public investo against the flood of worthless O doubtful securities which threaten tn market when the restrictions are re moved, and present conditions empha size the importance of obtaining emer gency legislation as speedily as DOS sible, so as to be able to cope effec lively. with this evil. The governmen not only should protect itself as to flu ture bond issues but, as well, owes
 duty to the millions. of Liberty bon
 buyers to restrain reckless and fraud ulent promoters, particularly at thi time.
 q intend to ask congress immedi ately for legislation that will check tn traffic in worthless securities Whil
 imposing no undue restrictions upo , the financing of legitimate bushes: and shall urge that it be made effectiv
 before the close of the present sessior
 Maritime it may became necessary, be , fore such legislation is passed, to re ' assemble the committee for the pur , pose of resuming it's functions
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