The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-26
SOUTH IS PREY
TOALL GET RICH
QUICK SCHEMES
Government Issues Warning
to People Not to Trade
Their Securities for Fake
Oil Stock.


ATLANTA, Ga. Sept 2s.-smooth !
STRANGERS, skilled in the art Of show
Ing folks the shortest road to big for
tunes" are reaping rich harvest In
the South with their wild cat
schemes. In spite of blue sky" laws
and the activity OF state officials, these
promoters have swindled the people out
OF millions Of dollars by inducing them
to invest In stocks" Of all kinds, ac-
eording 70 information complied by the
savings division OF the War Loan or
ganizatiou in Atlanta
An investigation recently made at the
instance OF Sias w. Davis, govern
| showed that fake promoters are de-
| vising all sorts OK schemes 10 separate
/ the people In this district from their
cash, Liberty Bonds, and Savings
| fake stocks. Certificates Of participa-
| ton" and lots" In ''oil fields" will
accent anything Of real value in ex-
| change for their handsomely liuto-
| graphed paper They know the value
Of government securities, and they also
| know the Horthlessness OF their
i stock certificates,
Fake Oil Stock Favorite,
| Thousands Of peopIe-business men,
clerks, professional men, wage earners
/ and women-have been swtndled by
these shrewd promoters, Il was stated.
Fake oil stock ~ the chief medium
through which the smooth talking
agent gets the savings Of the innocent
investor All the promoter needs Is
some kind Of claim to a foot or two Of
land in a thousand miles Of an oil
well. an attractive stock certificate and
they're ready to do business. The stock
certificates are signed up and the agent
fills In the name of the purchaser on
the spot---issues the stock while you
walt, But oil stock Is not the only
fake promotion schemes now In vogue,
They'll let the man or woman with q
few dollars in" on most anything from
heating system In Ecuador TO refrig-
GRAFTON plants at the North Pole.
Director Davis - urging the people
not 20 invest their funds in any
scheme until they have made a thor
ouEh investigation of the stock. State
securities commissions and secretaries
Of state will be glad to furnish infor-
nation about the companies And UNI
less the state officials know some
thing about them, it's advisable for
the investor to hold on to his money,
Director Davis said.
Evade Blue Sky Law.
Promoters are evading the ''blue
sky aw in some states BY selling
lots, leases with contract to de-
4 velOp the "oil land" secret forrlu-
4 las" and various other means, accord.
4 ing to facts shown by the War Loan
organizations Investigation. The law In
\ most states requires agents to get 4
y permit before offering stock for sale.
Some OF the swindlers, y y stated
4 knowing they could not obtain per
4 NIT, are working on the quiet. ready
4 TO disappear at the first sign OF Legal
| prosecution,
In several instances, preachers ant
school teachers have been made the
I ty,KA ank AAIH NF hsRaA Vaa Hat rFa
n The agent convinces the minister OF
educator that the oil well his company
a has lease on Is sure to come In big
Here's d chance, he says, to get somt
money to invest in the stock" and pro
y ceeds TO outline to preacher and teach.
Il er a plan for letting his friends in OF
tho Inside and offers big commits
siOns for selling stock In company
n that exists only on paper
& Glowing Propaganda.
Georgia, Florida, Alabama. Missis
Il sippi Louisiana and Tennessee hav'
been flooded recently with all sorts o
pretty literature. setting forth In glow
Ing terms, the wonderful developmen
OF oil; how $t5 4 week clerks have be
como u!u,tlmllionaires; what fortune
win be made on stock that now ma,
IL he bought for ten cents share--whel
1--WE strike" An indication Of the pro
N portion OF fake concerns In c0mpari
son with the genuine rs given In III
records OF Hon. Guyt McLendon, .secre
81 tary OF state In Georgia. Out. OF tire
hundred applications from oil compa
nies to sell stock in this state, onl
two have been able to meet the re
quirementa under the blue sky" LAY
" and have been given permits. tn
other two hundred and ninety-eigh
decided to do business elsewhere o
take 0 chance on being caught sellin
stock In this state without permission