The daily banner. (Cambridge, Md.) 1897-2008, 1919-02-24
STOCK SWlNDLERS BUSY
Their Operations Blamed For Social
Unrest-"Biue Sky LaWs'f ImpOr-
tant-FederaI Trade Commission
Hears Testimony That Postofce is
Also Unable to Check EVIL.


Washington, Feb. 21.-Operations
| of stock swindlers, growing larger
daily as the market created by the
campaigns for the sale of Liberty
Bonds is realized upon, were tdeclar-
ed>bv bankers and Government Off
cials appearing before the Federal
Trade Commission today ros be
prime cause in social unrest The
commission was holding hearings to
determine whether it has power to
stop such operations, and some of
the witnesses presented arguments to
show that it has, while others said
existing State blue sky" laws could
not reach far enough to accomplish
the end.
Charles S. Hamlin. of the Federal
Reserve Board, said the Capital Is
sues Committee, which functioned
during the war, had no effective pow
er now, although reports coming con
stantly to its attention showed ia re-
vival of fake security selling"
The earmark of the stock swind
ler today is his enthusiastic willing
ness to take Liberty Bonds in ex-
change for the paper he SELLS" said
Jason Westerfeld, representing the
New York Stock Exchange. THAT is
the new mark, along with the prom
ise of immense return that is old.
The industry is assuming proportions
today that enable it to strike the
foundations of our economic struc-
ture and magnify social unrest"
I'VE have Investigated 1870 ma
tional swindles during the past
year." Richard H. Lee, representing
the vigilance committee OF the As
sociated Advertising Clubs, testified,
land we have found that the maehin
cry at the disposition of the Postoffice
Department is not sufficient to meet
the need, willing though the respon-
sible officials are.
The good crook will fight, remem-
ber, taking advantage of every tech
nicality that there is to rest upon.
The epidemic of motor promotions,
which we fought with some sue cess,
is giving way TO oil schemes. Legiti-
mate business concerns, striving to
protect their reputation, only serve
to advertise the ingenious promoter
when they are attacked through the
civil courts. There are no. SO man:
of the successful promoters as one
would suppose and if you start out
you'll find them all in one group.
will you lend us your rogue's
gallery if we find a chance to inter
vene?"- asked Chairman Colver. of
the Commission.
Gladly" the witness said I'VE
are only in the work in order to jus
tify the faith that readers have in
advertisement. Any government
agency that will act and give it's ac-
ton publicity will stop the business.
The banker and the business man
have all their warnings discounted
because the swindler yells 'trust'and
big business and makes their at
tack an advertisement"
Representative Taylor, of Colora-
do, said that the marvellous facility
for circumventing statues" possessed
by the swindlers made most of the
State "blue sky" commissions more
or less helpless. He promised that
Congressional action would be forth
coming if the commission deemed its
present powers insufficient. Various
other arguments were presented and
the commission adjourned with the
suggestions taken under advisement.