The sun., 1919-02-18
OPEN WAR AGAINST
BOND SWINDLERS
Large Financial and Business
Interests to Organize to
Fight Evil.
PLAN EDUCATIONAL WORK
Permanent Committee, to Be
Formed, to Outline Scheme
for Action.

The opening gun was hreu yosto'uoS
ne n group Of bankers and business men
% yhelr campaign against the stock
suindler and bond shark, whose oper-
atoms have caused much trouble and not
n little real suffering among the smaller
,ond holders Of the country. The cam
na,rn was opened formally at a meet
ing OF representatives Of financial. bust
rAss and civic organizations in the
chamber OF Commerce building.
A cali sent out last, week by Presl-
dent II. G. S. Noble OF the New York
stock Exchange to leading business and
financial men asked them to attend yes
terday's meeting, the purpose OF which
was to formulate plans for the cam
paign against stock swindlers. Nearly
A score OF those who received invita-
,jons responded by attending the meet
ing. Those present were A. f. Marling.
president Of the Chamber of Commerce;
piarre Jay, chairman of the Federal Re
rerye Bank; John ]. Pulleyn. represent
ing the American Bankers Association
and savings banks II. @. 8. Noble. pres
,sent Of the New York Stock Exchange;
" X. Pomroy and Jason Westerfield,
also representing the exchang: c. w.
Hodxea w. II. Maxwell. Jr.. and N. f.
Beeba representing the Investment
Bankers Association; John Price Jones,
representing the publicity department
OF the Liberty Loan Committee: Fran
cis H Sisson, vice president of the Guar
auty Trust Company; r. o. Stanley. OF
the Title Guarantee and Trust Com
pany; C. e. Roberts, Of the National
city Bank, and ]. w. Bramhall. OF the
MerchantS Association.
Education Comes First.
II was brought out at the meeting that
there are two methods by which the
stock swindling game may be attacked
legislative and educational 1t was
declared to be the purpose of the group
~ representatives to follow a programme
o. an educational nature and leave the
legislative plans to the Federal authori-
lie, who have taken steps looking to-
NEd the elimination Of the stock and
BOND CRATER.
"in view OF the evidences OF the vast
extent to which Liberty Loan investors
had been victimixed." a statement given
out at the conclusion OF the session,
the meeting was unanimous in favor OF
some action which would unite all sound
business interests of the country In a
publicity and educational campaign. II
was shown that the Treasury Depart
ment was doing all that It could in the
way of preparing legislation which
would check the evil at the source that
is, supervise the issue of securities.
The Secretary of the Treasury made
clear in a letter to the Stock Exchange
that It was essential that legislation be
supplemented by education and pub
lefty. - - f-fs-t --' .s-a'--E
Before adjournment It was decided
20 form a permanent committee OF men
experienced and qualified by studies of
the problem to draft a programme
which would, in practical manner. per-
NIT business interests in the Second Fed
Wral Reserve District to unite in sup
preston of stock swindling In that dis
tr1ct. As soon as the campaign Is &C
lively launched in this district II is pro-
Iosed to extend its scope that eventually
the entire country will be included"
Committee Not Appointed.
The members OF the committee men,
'ioned In the statement have not been
appointed as yet Every group interested
IN the campaign will name its repre-
sentative on the committee.
In letter TO Jason Westerfeld, secre-
'ary OF the committee on library of the
New York Stock Exchange. Secretary
O. the Treasury Carter Glass commended
'he attitude of the exchange. VERY
likely" he said, the work OF the Stock
Exchange movement might be probably
continued even after Congress shall have
acted on bill sent up by me some days
ago Il is certain that in the absence of
me proposed legislation the Stock Ex-
change movement will not only be de-
sraols but almost essential
6. S. Hamlin, chairman Of the Capital
issues Committee. also wrote to Mr..
Westerfeld In support OF the plan. AL
'aough the Capital Issues Committee has
uspended its activities for the time
helng," he said. ct am sure that every
member feels that effective legislation
should be speedily enacted to abate the
menace from the placing of worthless
ana fraudulent securities with the pub
nc ] believe your proposed plan in
owing the union of representative bod
es financial associations and industrial
Establishments, will go far toward check
ing this evil and I feel certain that II
VIII receive enthusiastic support by our
committee"
Among the propositions being consid-
e'ed are two Of a concrete nature. The
rrs Is for cessation of all dealings OF
HIock Exchange members and reliable
brokers with dealers OF questionable re-
nuH' thus stopping the possibility OF
me'r disposing Of bonds illegally &C
CURED The other plan Is for the news
papers TO refuse the advertisement OF
Iuesuonaole dealers and thus hinder
Insir operations by lack OF RIblicity
Nnoh Is necessary TO successful carry
ing on OF their business