New-York tribune., 1919-02-09
Decoy Letters
Of Investors
Reach Brokers
Supposed prospects Write
to ''Staats-Zeitung''; Get
Stock Firms Circulars
Protest Made to Ridder
Editor Fails to Reply to
Communications Relating
to ''Briefkasten'' Methods

Names of small investors of hard
lators-once in the hands OF stock
brokers who deal in big promises are
treasured as tangible assets and traded
upon as such.
Some of the methods of these bro
kers were revealed through investiga-
tion of the promises of quick fortunes
en- small investments held out in the
advertisements of the Lightning Greek
Gold Gravels and Drainage Company
described in The Tribune yesterday.
Whether names Of mQuirers who
send confidential letters for financial
information to the "New Yorker Staats-
zeitung' are turned over to brokers as
Ii regular practice is not known. 1t
was learned, however, that three fictiti-
Gus names, that appeared only on let
ters to the newspapers financial de-
partment, Immediately found their way
to the Offices of one broker and that
the supposed "prospects" were asked
to make investments with this concern.
The first of these letters bore the
signature of eva NJ Wieser" and a
Brooklyn address In it she asked the
''StaatsZeitung's" "inanz-briefkaste {"
Financial queries and answers) de-
partment if certain stock would prove
a good investment. The exnert's reply
was moro direct than diplomatic 1t
said, "No good. Leave your hands off !"
Promoters Are Busy
Within three days the fictitious
Miss Wieser" received a circular let
ter from Alfred Benscher g. Co.. of II
Broadway, offering special inducements
Tor investment in particular securities
offered by Benscher. 1t pictured this
particular stock as about to be put
upon the New York market, where "an
active and rising market is assured"
But the sender of the decoy letter,
himself interested in the legitimate
stock that had been classified as "no
good" was fGr from satisfied with this
manner of using the names OF seekers
after financial information.
He wrote d letter to Victor Ridder.
vice-presidcnt of the "Staats-Zeitung, y
saying in part:
Il beg to address you in regard to
the way and manner your financial
'briefkasten' is being conducted and
has been conducted for-as far as |
know-the last two years. ADVERTISE
ments of certain mining and oil CON
Germs, amounting to from $40 to 500.
are and have been accepted by you, but
on the very same page where they ap-
pear the 'briefkasten' man knocks the
value of their shares down and warns
against their purchase
This Is aggravated by the fact that
the addresses of inquirers are handed
over to other brokers, who thereunon
cffer their own securities to the past
and prospective purchasers of stock
which has been advertised in your own
paper.
Il refer especially to one concern OF
the highest standard, paying dividends
out OF earnings, having forty-five nro-
duclng wells and which your brief
hasten man pronounced as no good
Leave your hands off | should he
Pleased to bear from you stating your
standpoint in the matter"
Having waited reasonable period
Tor reply, the writer of this letter
to Bernard Ridder president of the
Staats-Zcitung Company, inclosine Z
carbon copy Of the first letter. He is
IN possession of postal registry re-
celpt to prove the delivery of this sec
ond letter, But that is all he has to
show for his two communications
A second letter to the "brie efkasten'
pore the signature of "Josephinc
Deutsch,' also a Brooklyn address
Miss Deutsch," who existed only in
this letter, asked for information about
two oil stocks. A formal reply of two
lines was published in the "Staats-Zei.
tuny's" financial department.
Inen came the solicitors from Ben
scner 20. Failing to see the writer
of the letter at the address given. a
campaign of stock selling was begun
by mail. In the circular letter sent
TO the address given all of the same
securities offered to "Miss Wieser'
were described and offered with the
same promises of profits.
Inc third letter was signed "D. r
Link and Manhattan address was
gwen Link" pictured himself as the
possessor of $4,000. which he was anx-
,ous TO invest, asking about a particu-
iaf STOCK. NO reply was published in
,l. me Staats-ze'tung,' but a personal
!eecer oearlng the signature of the cdi
TOR OF the financial department was
sent to him urgently advising him not
to buy" ''S MN ''o'
Gets Special Advice
gestions: '''s'' Sus
IF | may give you an advice vol,
WIZ purchase something that will Sc
NuIS you good sleep at night. You
ought to buy but bonds. which il ,n,,s.
be admitted advanced very mucb or
something like Cities Service Corno-
ration bonds, regarding which the oood
property OF gas works. electric station
or street railways offers securitv III.
are stlu being offered at the base ~
an income OF ga per cent Of tho IN
vestea money, but might disaanear
from the market pretty soon OF co,,rao
----"-------------