Norwich bulletin., 1919-12-02
WASHINGTON AFFAIRS

market and making capital scarce for ! legitimate development projects con- | gress is preparing to enact national "blue sky law at the incoming sess- I ion.
 ] President Wilson has called upon congress for such law in his message on the high cost of living. He urged the passage of this measure, saying:
 There is bill now pending before the congress which. if passed, would be much to stop. speculation and to prevent the fraudulent methods of promotion by which our people are an | nualfy fieeced of many millions of hard earned money. I refer to the measure proposed by the capital Issues committee for the control of securities issiies. It is a measure formulated by men who know the actual conditions of business and it's adoption would
 serve great and benifcent purpose" Many thousands of government efn- ployes struggling along on neagre Salaries are been induced by turing
 prospectus to make investments in these fake or highly speculative stock
 selling scheme. The officials in every 1, government department have heard of Hundreds of such cases. The Liberty Bonds which all government workers
 bought are being lost in this way, as a ! IluIuD0T Ol lIlt SCu6II1SS QO d
 land office business in swapping the l speculative stocks for the bonds be-
 hind which the government stands. ] The Treasury Department has is- sued repeated warnings again such
 stock deals and Houston Thompson, a | federal trade commissioner, has made a campaign. speaking before number Of large organizations oh this subject. One statistiean in the government s service has figured out that there are
 44y800 companies whose stocks and bonds afe practically mere scraps of l paper and this does hot begin to l reach the total of defunct Corporations } promoted within the last three years. : Worlds Work recently listed the names of 1,0s6 of the worst of these
 stcek selling schemes. Oil pron,otieu . vefitures that are considered by gov 2 ernment experts to be mot worth the Q paper on which they are .printed' have e a capitalization of s4S6,b00. .O0e. Ali : sorts of industrial organizations have s recently been floated and. are selling \ their paper right and left. with a = capital of more than a billion. Mining
 promotions are listed at about the
 same figures.
 in tho special session of congress [. ] the house made a start ofi Legislation l. to curb this swtndling of the public Il 1 Representative Edward T. Taylor oi e Colorado, who has a wide and sym. It pathetic interest and experience ir $ mining developments, and who is de q sirous of fostering legitimate, homes n development of of prospects in hi: ! home state, is father of a bill on whicl IL extensive hearings have been held bs
 the judiciary committee. Secretar1 | Glass of the treasury department Paul V. Kesser, representing the In 7, vestment Bankers Association of Am u erica, and others prominent in tn '- financial field strongly urged passag l. Of this measure.
 o With the support Of government de e pattments and agencies and legitiinat .v investment enterprises. Representa- !. tive Taylor proposes to press thi ,A measure as early as possible in tn e session which opens on Monday. H 2, has been promised support by his col III leagues in congress generally, fo
 nearly every member of congress ha nt been advised by letters from his con IS stituehts about the flood of worthles ;n stocks in circulation.
 .s Representative Taylor has alread Ies asked Chairman Volstead of the jtidici Ct ary Committee for another hearing. H st has received encouragement from tn 1T authorities in more than two thirds [ D. t.1e- states. There are now 3g stats ot 7h have some sort of laws agains or fake stock promotions but out II these Mf. Taylor finds that 16 onl tS, make this a 1nisdeamnor, and a ~ neighborif3g states require felen t- charge before they will grant extra be dition all an offender has to do Is wal ip across the state line and go free. ng The proposed national "blue six, | ] 1au ic J1of ;standnd "A ;+4zseza. q investment or even with speculatio
 It would require a promoter to tell tf :. truth about the venture, and then a the man with money wants to 'tai or gamblers chance" 1t is for him ini decide. The Taylor bill redaires nd sworn statement by the promoters n- five things:
 e- 1-what tlie assets are: 2-wha 4a sums are to. be derived from the Sd a,, of what is to be produced; S--the ra on or commissioner bonus given pilfs tn actually goes into the operation of tf nd concern; 5-what is done with tf ,v- proceeds.
 to We want to show how much a liegitifhately used in promoting the CT ble terprise," said Representative Tavio ta We want to show ths public whel .n they can get facts about the enterpri in which they propose to buy an il oi terest: I figure that now there lon $500 100000 year of absolutely fal be stock being put out.
 at- "The light prevents many crime
 The worst crimes are committed Ill
 der cover of darkness. We must I
 in the broad sunlight upon the
 murky stock selling schemes" s The Taylor bill is framed along | al line of the British act of Parliament
 1908 and takes advantage of t
 amendments since that time so that ap- is an up-to-date adaptation of t
 a principles of that bill as applicable
 the United States.
 In a statement prepared for t de- judiciary committee, Representa- md Taylor says:
 i, Every intelligent person kno
 that we are having the worst orgy h,tc speculative stock selling right n s,ss that this country has ever known ess seems that all the bubble blowers ieo other days, the moonshine promot.
 green goods and gold brick and sl ". game men, finanial pan handlers !; 'eo- wild cat expleiters and skin ga ling takers of every conceivable kind | ex- Variety are now engaged in the st
 selling game. For a. generation
 come there will be hundreds of tn
 tp sands of our people who will sadly ,fsts tnemper thls period as the time ing enlds,, ntitsi n,iiieftnu,ty .l sung ,a,s, ln- beyond the widest dreams of ayar
 and all they will have to show
 their credulity will be the lur tuto Autographed .certihcates bearing IT ghly velous artists dreams of the fabui 'rdi- wealth in which the bearer was s nent to participate"