The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-27
SWAMI WILL SEEK
OIL INDICTMENTS
Saws He Will Present Evidence
Against Two Corporations
Next Monday.
HAS AGENTS IN TEXAS
Asks Victims to Help Him
Prosecute-Favors License
System for Brokers.

more than merely shake his finger at the
crooked oil companies, promoters and
brokers that are competing for the pub
lies money. District Attorney Swami
caused It to be said yesterday that he
would ask one OF tho Grand Jurfes to
be sworn In next Monday to indict on
GERS Of two corporations which have
wildly exaggerated the value Of their
Texas oil lands" ard appear to be guilty
under the New York laws of fraudulent
advertising.
Mr.. Swami got a promise. OF coopera-
ton in a cleanup campaign from the
New York Curb Market Association, and
said that the Consolidated Exchange
and the New York Stock Exchange had
agreed to help. He made public the
fact that he has representatives In the
oil States who are checking Up extrava-
giant assertions and promises with the
actual facts.
He Is now thinking of asking the
Board of Aldermen to pass an ordinance
requiring stock brokers to get a license
and be subject to the rules of the city's
Department of Licenses Such an ordi-
nance could probably be passed IL made
nm administration measure
Asks ttcthmh 10 AtO HIM.
Meanwhile the District Attorney pakes
this public request:
"All persons VINO have been or think
they are being victimized are asked to
bring or send their information to the
District Attorneys Office. If any man
or perpetrated by any broker. promoter,
or perperated by any broker, promoter.
company or corporation the facilities
OF this ONCE are at his or her disposal.
III possible the facts as TO any scheme
that looks bad should be reported to US
before any money Is paid. SO that we
may help in getting the evidence"
The fact that anybody no matter how
Irresponsible, can set up shop IA broker
and without being member of any ex-
change or possessing proper financial
qualifications has always operated In
favor of the get rich quick fraternity.
1t explains the presence of many JAIL
birds and rogue's gallery graduates
among the scores OF stand and deliver
brokerage firms that have sprung up
In New York in the last six, months.
Alderman Quinn apparently had IN
mind the suppression OF an evil and at
the same time O new source of revenue
for the city when about a month ago he
Introduced in the Board OF Aldermen an
I ordinance for the licensing of curb
brokers. His idea was to get a fee from
each of the men who help to block traffic
In Broad street, city property. There
fore he made shis proposal apply only
to. curb brokers and defined them as
'.ail persons dealing in the purchase or
sails of stocks. bonds, notes or securi-
ties In that section of the city known
ar the curb market. in Broad street"
Mr. Quinn's brain child Is slumber.
ing In the committee on general vel
fare. In its revival Of interest In the
subject OF shady stock promotion. the
District Attorney has found in this pro-
posed ordinance something possibly cap.
able of Improvement. John T. Dooling
Assistant Dissric. Attorney. who with
Assistant District Attorney Kilroe hal
taken hold OF the bureau of commercial
frauds, thinks that an ordinance shoult
be passed subjecting all brokers to thu
license test. II II affected only curl
brokers some of the very worst offenders
who never go near the curb but pla,
their tricks through advertising, cir
cularizing, correspondence and statesmen
would not be touched.
Thinks $1,000 Fee Too High.
Alderman Quinn was for exacting al
annual license fee of 81 1000 from eacl
broker and requiring bond of $4,000
to be given to the city through the DE
thinks that fee may be too high an
that the best way of protecting tn
public against loss and keeping out O
business financially irresponsible brok
ere would be to require a heavy bono
graduated in amount according to tn
amount OF business done. 1t is expect
ed that the Quinn proposal. amended
or posdbiya substitute, will be sent I
the Board OF Aldermen by District Al
torney Swami.
Representatives OF the Curb Marke
Association who visited the District AT
torney's Office upon invitation yesterda
were A. b. Sturges. secretary, an
Franklin Leonard. counsel and forme
secretary. They agreed that the situa
ton was bad but insisted that the asso
citation Could do little to make 1t bette
because the majority of the brokers no,
doing business In Broad street were no
members OF it. They promised, however
to get from brokers who are members @
the association financial reports of o
and other companies whose security Is
sues they may be sponsoring.
Mr.. Dooling told them It should nc
be difficult TO get such reports from com
panies that were In existence last yea
as these have to be sent to the Govern
ment with the second instalment of tn
income tax by June Is.
Having heard that the Oil Investor
Association Of Wichita Falls, Tex,
honestly trying to do both the public an
the honest oil companies a good turn b
exposing takers Judge Swami sent
an inquiry recently and has received
reply. The association, through Il
president. G. F. Swanson reports:
almost without exception there al
no companies paying dividends in Il
Burkburnett or Ranger fields or ar
other Texas fields. except the larger OF
erations that are paying for any 70