New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-03-24
BARRIERS and Bootblacks
Thrive on Bogus Stocks
Swami Roundup of Fraudulent Promoters Shows Lve
Business in Wall Stree-Salesmen Preyed Upon Public
Patriotsm-Three Close Doors and Disappear

District Attorney Swann's roundup
OF bogus stock promoters, bucket shop
operators and investment brokers, /"
who have reaped millions from pub
llc that is suffering from the specula-
ton fever, shows that BARRIERS. chefs.
WATERS and even bootblacks have sue
ceeded at the game and are rated as
successful in the ranks of the swim
dlers doing business right in the
shadow of the New York Stock Elk
change. Through the agency Of the
exchange which is cooperating with
the District Attorney in exposing them
1T was learned yesterday that three
bogus investment brokers closed their
doors yesterday, apparently shrinking
from the spotlight of publicity.
Assistant District Attorney Edward
5. Brogan. of the bureau of CONNER
cal frauds, says he has several com
plants against bogus concerns selling
OIL stock, whose statesmen or pros
pectuscs have capitalized patriotism
by pointing out to victims that the
money put into the development of oil
wells woGld aid the government in
winning the war more than buying
Liberty bonds, because the latter form
Of investment was really for the
wealthy, who could afford to accent a
low rate of interest.
Film Inquiry Planned
Mr.. Brogan says the campaign
against bogus stock concerns will not
stop at Wall Street. Investigation of
numerous real estate stock jobbing
concerns in the vicinity of West Thir-
ty-fourth Street IS already under way.
he says, and complaints against sew
eral motion picture film stock compa-
mes IN the vicinity Of Fifth Avenue
and Forty-second Street are being in
vestigatcd.
Another harvest has been reaped in
the last two or three years by con-
Germs claiming to make new automo-
bile tires out of old ones without the
use of new live rubber Mr.. Brogan
says he has evidence of fraudulent
representations against several con-
Germs which have sold many hundred
thousand dollars worth of worthless
stock. In most cases, Mr.. Brogan said
the sale Of these tires in itself was
fraud in many cases. most of them
being guaranteed to run 1000 miles
Many of them, lie said, won't run 100
miles without repairs
In case buyer complains that his
tire hasn't run 1000 miles he is told
that he can replace it for new one
by paying one-half price. Selling
stock in these concerns is made easy
by quoting the fabulous increased
earnings Of old line tire companies
since 1914 In some cases this amounts
to S30,000,000 a year.
Women Found Active
Mr.. Brogan says his investigation
shows that it is not uncommon for Gin
vestment brokers" of the shady type in
Wall Street to utilize women as "boost-
ers' in their game Of stock selling
particularly in cases of out town in
vestors. who are induced to come to
New York to inspect the "balancc
sheets" of whatever company it hap
pens to be whose stock is going to rise
from 81 a share ground floor quota
tions) to s. in the time it takes to
establish market by wash sales.
This class of broker employs several
commission statesmen on the road Mr.
Rrogan says, and when thcv End