davidaulloa/AmericanStories huggingface dataset:
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23
By Fred l.. Halmes

not substantiatcd b. the prosoec-
t2ses or circulars OF the company.
Don't put your confidence in one
Who promises you dividends on
stock Remember that even dii-
dends on preferred stock are not OBJ
legations OF the company unless suf-
tcient earnings are made.
Examine financial statements 20
see amount OF stock issued for pat
cnts. formulas. leases. promoters
services. and other assets OF un-
certain or intangible value The
Wisconsin law designates what Sc
Curiues are speculative"
From examining some Of the
records in the Office IL was evident
that the blue sky department and
the divorce court have some charac-
teristics in common. Both are en-
poriums where the woes Of mankind
come 20 light-in the one financial.
IN the other domestic
Before the blue sky law was
passed there was much complaint
over stock swindles in the state For
example. A company sold quite a
lot OF stock in small amounts
throughout the state. From the
money received from the sales Of
stock quarterly dividends were paid
for two or three quarters. II then
sent out circular 10 the stockhold-
ers telling them OF the wonderful
progress OF the company and Of the
large surplus accumulated They
explained that IL was essential that
they enlarge the business To do
this the surplus would be used and
the capital increased. by law each
stakeholder was entitled 10 his pro-
portion OF the increase. The stock
holders naturally were enthused by
the report and the fact that substan-
tial dividends had been paid Many
cf them raised all they could 20 take
/ their proportion. Within three
months the company was in bank
ruptcy, the officers and the assets
gone
The purpose Of blue sky laws is
not 10 prevent speculation but to
protect the public from the faker.
the financial shark and the optimis-
/ tic fool. Comparatively few appn-
cations submitted 90 the railroad
commission are pure fakes in the
sense that there is no property or
no business from which there is
even a possibility Of making money.
a few attempt 10 slip by the blue
| sky commission, but for the most
| part the promoters Of such ventures
/ IN blue sky states resort 10 the
mails. hiding behind the inters.ate
| commerce clause Of the constitution.
| or send a salesman into the state
for "A day or two at a time hoping
| 10 escape arrest. BY far the largest
number Of applications are by per
sons who hoTe 10 esta blish a paying
| business but who have planned the
deal in such a way that the pro-
meters risk little or nothing and
make a substantial sum even if the
! business fails; and if it succeeds they
get most Of the profit. The schemes
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23

Did YOU ever buy any blue sky
upon which you expected 20 reap
such an amount Of money that you
might retire IN your old age com
fortably fixed Blue sky IN the
financial world does not designate
heaven ethereal blue. in lcglsia-
two parlauce and in comm rcial cir
Cies u denotes either tie Cellpcrafe-
~ fraudulent or the highly specula-
tive securities upon whi-h there are
more chances for you 20 lose your
monty than there are % win out
These securities are generally offered
for sale in superb pro spcctUs, the
vcry rene OF the printers art. PIE
lures Of the proposed rey-maGing
plant featuring the story. Bright
ribbons and gold seals may adorn
the stock certificate. Some inside
lunches on how the money Is 20 be
multiplied is tod in glowing Ian
guago IN the literature OF sale and
the names Of some men you may
know are used as promoters and
hackers. All these delectable at
tributes. however, do not prove that
the security IS worthy
Not all stocks are blue SKY the
great majority are not.
Thirty states iu the union have
encated laws 90 tight the blue sky
menace. The sale OF speculative
securities. the Offering OF which may
rot DE in good faith even by the
promoters. hampers the sale OF sound
securities and the enactment and
enforcement OF blue sky laws usually
have the support OF the best finan-
cial institutions. The close OF the
was brought a regular plunderbund
with schemes for making money by
rapid transit routes. The blue sky
legislation Of the past few years has
checked saturnalia Of these specu-
lations Such statutes are passed 20
prevent swindIes in the sale Of stock
and 90 protect honest issues.
"Gne OF the worst sources Of
fraud in the past has been the sale
Of stock I'm companies which are or
ganized ostcnsibly 90 manufacture or
sell patented articles made by secret
formulas. or exploiting oil, gas and
mining leases" said g. S. Canright.
director OF the securities division, "a
branch Of the state railroad com
mission. who has the enforcement OF
the Wisconsin statute.
When 1 called on the director his
desk was crowded with budding
financial schemes which had been
submitted for his official considera-
ton. He had Just finished eXamin-
INK the asset report Of one COM
Dany. whose financial joints showed
signs Of weakness. and disease He
had penciled its glowing advertising
literature and was planning to write
the promoter saying that the finan-
cial report did not Justify the state
ments made in the circulars, and
could not be authorized in the orig
inal form.
Having been stunC once or twice
on speculative securities, 1 plunged
right into the subject of how the
people or the country should be pro-
tected, at least so that those who
bought speculative stocks would
know that they are really specula-
tive. Here is the character of adj
vice ne handed me. the same that
ne is giving every day 20 the pub
lie.
Don't buy speculative securities
unless you can afford TO take a
chance on losing the money paid
for them.
Don't invest all your money IN
speculative securities.
Don't rely on the verbal state
ments OF the salesman which are
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23

devised . accomplish this are legion
One OF the commonest methods is
10 issue a large block OF stock for
patents and sell part OF such stock
10 the public.
The Wisconsin blue sky depart
ment has held that promoters shall
not be allowed To make their for
tunes out Of the sale OF stock which
has no value, II they issue 10 them
selves large amounts OF stock. for
intangible assets. II requires that
most OF this stock must be placed
in escrow under specified terms.
Such escrowed stock does not par
ticipate I'm the assets of the company
in case OF bankruptcy or insolvency
until all other stockholders have
been paid in full. The stock must
remain in escrow until the company
has shown certain required earnings
the percentage varies from three
per cent TO 20 per cent. depending
upon the nature OF the business.
BY this means the department has
checked the preparation OF many
clever schemes which were formerly
common in financial circles.
Another scheme is for the pro-
motors 20 sell patents or formulas
20 "A com any at a ridiculously high
price. In one case a company de-
cided 20 increase it's capital stock
from $4,000 20 $1,000, 900. In
vestigation showed that originally.
and before state supervision, the
patents had been sold and for them
a part OF the $4,000 capital stock
had been issued TO the incorporators
and inventors Later when the cap
i'al stock was increased to $1,000
OO2 il was voted TO return the
patents to the men who had orig
inally assigned them TO the COM
pany. because there patents were
considered of no commercial value.
Six or eight weeks later the patents
were repurchased by the company
from these same inventors. who were
also officers and directors Of the
company for more than One-half of
a million dollars. And they were
planning TO sell this stock them
selves TO an unsuspecting public.
I'm the case Of oil securities" said
Mr.. Canright. the commission takes
the attitude that legitimate oil oper-
ators should be encouraged when
their prospects are reasonable. The
commission investigates the proper
ties. their title TO the properties,
their prospects of securing oil from
the bet geologic data available. and
the responsibility of the promoters.
It is necessary that the commission
know the geological conditions of
the property where the company
proposes TO drill. Many present geo
logic reports that can be purchased
for a price or reports from good
biologists that have no reference to
their property.
I'm many cases the companies
find that the requirements are so
rigid and the investigation so likely
to prove unfavorable that the appli-
cation is withdrawn before a permit
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23
Fighting the "BIue Sky" Menace Successfully
BY FredL-

can be denied This has been true
in several instances"
Occasionally a scheme Of financing
is brought 10 the attention OF the
commission which on the face Of
il would work a fraud upon the pur-
chaser.
Take your pencil and follow this
transaction" I was told
A certain manufacturing company
made application 10 sell its s per
cent cUmulaung preferred stock par
ticipating up TO 10 per cent. The
company desired 10 sell the stock
at 1925 per share (par value 5000
because OF the participating feature.
This would look like a fair buy to
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23

the average man. The proposed cir
culars omitted one very important
point. Ii was callable in three years
at SIS. Suppose a man invested
I'm eight shares OF this preferred
stock. paying $1,000 for il. Sup
pose also that the company earns
enough 50 that the preferred stock
gets its two per cent IN addition 10
the regular eight per cent. In three
years, then, the investor Will get
six per cent above the regular divi-
dend. and six per cent on eight
shares OF stock of the par value OF
500 amounts 70 $4S. Suppose the
company called the stock in three
years. paying for the eight shares
al the rate OF Sis. the specified
price. The man would then receive
$500 for stock for which he paid
$1,000. a loss Of $50. on the as
sumption that he gets the two per
cent above the specified eight per
cent, which. as stated above, amounts
South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-07-23

CONTINUED on PAGE -
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
WOMAN AIDS man
IN FIGHTING FIRE
Two Struggle Half Hour Against
Flames in Garage Until
/ Help Comes
TRUCKS AND BUILDING LOST

Two automobiles and n garage were
destroyed by fire this morning after. a
man and woman battled in vain for
almost half an hour to extinsuish the
flames.
roar of the home of Max Weinstein,
o439 Enst Allegheny avenue. shortly
before 9 o'clock. The damage is esti-
mated at $4,000.
II began when John Logofski. the
cbauffeur, started the engine Of one Of
the two trucks stored there. Flames
shot out of the exhaust and communi-
cated to the gasoline stored in the rear
vehicle.
Inc burning gasoline over both trucks
md the garage. The trucks and tho
building were ablaze in less than q
y Fighting the flames as best he could.
Jeeofski called for help. Mrs. Ida
Weinstein responded. Side by side the
two fought the flames without apprecia-
bic success.
In the meantime, their shouts aroused
Weinstein and his three children, sleep
,ng in the house. A fire alarm was
sonnded and Weinstein aided his wife
and chauffeur until the engines arrived.
Mrs. Weinstcin and Logofski were
scorchcd but not burned seriously. Both
trucks were destroyed. Most Of the
garage was burned to the ground.
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
EXPERTS ON THERAPY
TELL OF NEW PLANS.
Annual Convention viii End To-
night With Banquet of
Delegates Here

The second days session of the fourth
annual convention of the National So
ciety for the Promotion of Occupa tional
Therapy opened this morning with a
series of round Liable discussions. The
convention IS being held in the Ritten-
house Hotel.
One table is devoted to the orthopedic
conference under the direction of DR..
Charles Jheger, of New York. who
conducted one Of the earliest hospitals
devoted to therapy before the outbreak
Of the war;
Other tables included conferences on
mental and nervous affections. con
Quoted by DIR. W. II. Dunton. ,Jr,. of
Maryland the tuberculosis table di-
lected by DR.. II. A. Pattison, and the
general table, directed by Miss Idcle
kidder, of the st. Louis School of Oc-
cupational Therapy.
AT II o'clock general conference
was called at which the chairman re >
ported the findings of their round table
discussions.
The convention, which is being at-
tended by more than 200 physicians.
social service workers and public
health aides from ali over the country,
Will conclude its sessions at a banquet
this evening. An exhibit of toys, Jew
elry and woven articles. most of them
made by disabled soldiers, is being
shown in connection with the regular
meetings.
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
REPORTS DISAGREE
ON MACSW|NEY
Irish League Says Cork Mayor
Is Weaker, While Prison Doc
tors See No Change
BRITISH DENY BLUFFlNG
BY the Associated Press

London. Sept. 14.--Terence MacSwi-
ney, lord mayor of Cork, was appreci-
ably weaker this morning as result OF
his hunger strike which he is continu-
ing in Brixton prison, says a bulletin is
sued by the Irish Self Determination
League. It states MacSwiney had a
very bad night, but he was still con-
scious and his mind was active. Today
is the thirty third day since he began
ms hunger strike in protest against his
arrest by British authorities in Cork.
reports to the home Office from prison
physicians who are attending the lord
mayor did not agree with the bulletin
issued by the league. They reported there
was virtually no change in MacSwiney's g
condition and that he had passed a rest
full night.
Negotiations for the settlement of the
Irish question, which were described as
the most promising as yet initiated, will
De nullifed IL Terence MacSwiney dies
IN Brixton prison, says the Dublin cor
respondent of The Times.
Secret negotiations on the basis Of
iull self government within the empire
have been going on during the last three
weeks between the most prominent lead
crs of modern opinion and, Influential
republicans, he declares. The mod
crates have at last been told. he adds.
that nothing further can be done while
MacSwiney Is near death, and IL the
lord mayor dies the last hope of settle
ment on the proposed basis will dis
appear.
Appointment of an additional under
secretary for Ireland has been decided
upon by the government. 1t will be his
duty to. deal with all problems which
may arise In the six counties of the
province of Ulster, the Unionist strong
hold in Ireland.
Dublin, Sept. 14.-By A. P.)--The
hotels and restaurants of Dublin were
closed from 3 o'clock to 8 o'clock yes
terday afternoon to enable the employees
to attend prayers for Lord Mayor
AlacSwiney. at the Marlborough street
church. The workers marched through
the principal strets to the church carry
ing the Sim Fein tri-color.
Bantry, Ireland, Sept. 14.-(By A.
P.)-Sinn Feiners captured government
mails being carried by airplanc near
here yesterday, adopting n clever rusc
to carry out their raid. A number of
men dressed in British army uniforms
made a large white circle in field and
deceived the airmen operating the air
plane so completely that they dropped
mail bags, which were quickly picked
up, taken to motorcar and carried off
toward Kerry.
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
outlines
AMNESTY PROGRAM
Cases Of Political Prisoners
Being Considered Indi-
viduaIIy
U. S. SHOWING LENIENCY
by the Associated Press

Washington, Sept. 14.-Labor lead
ers asking general amnesty for political
prisoners were told today by Attorney
General Palmer that the government
would continue it's policy Of Consider
ing the cases Individually" Ee.
Replying to- the appeals of President
Gompers, of the American Federation
OF Labor, and former Representative
London, New York Socialist, Mr.
Palmer recited the cases acted upon
since the cessation Of hostilities and
predicted that "at the end of three
months more less than 100 Of the per
sons convicted purely of violation of the
espionage act will be left in jail"
Mr.. Palmer told the delegation which
presented the resolution adopted by the
American Federation Of Labor conven
tion at Montreal In June, that he would
inform the President what they Ind
said, but further than that he could do
nothing. g1
General Amnesty Impracticable
You, propose a general amnesty"
Mr.. Palmer said "Now I ask what
and how do you interpret that? rs II
by a general proclamation and, IT, 80.
how will you differentiate the so called
political prisoners? sIn
A"s JuukiucHI 10 lHdI IL WOulQ re-
quire a proclamation by the President
dealing with every individual case. That.
suggest, Is exactly what we now are
doing. I recognize some Of the war
legislation to which you object being
necessary only to the exigency of war.
l have advocated repeal of the espionage
act and have seen to Il that no prose
cutions under its provisions have been
instituted since the armistice."
Government Lenient Since Armistice
The delegation was told that thus far
$50 cases, both large and small'' and
OF varied Importance, have been acted
on by the department and have received
favorable consideration since the ar1ni-
sstice. Some of these, he said, resulted
In paroles, some in pardons and some
in communication of sentences. -, -s- .
He added emphatically that he could
see no other course to be taken In the
face of problems with which the govern
ment had to deal. -
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
GIANT GUARDS>CARUsO CASH
Golden Vocal Notes Only Kind That
Get Past Detective at Hotel

In front of suite No. $40, Ritz.
Carlton Hotel, there stood last night
a man of tremendous size. He must
have measured at least six feet. forr
inches, and he was broad out of nil
proportion. He stood there from shortly
after . O'Clock until midnight. And no
said never word. -.
The door of the apartment was omen,
And out of 1t flowed golden notes. They
flowed. to the evident delight of about
dozen bell boys and chamber maids.
into the hall. But the big man LET
them flow by. He was there to watch
other gold and different notes.
The throat from which issued the
golden notes was that of Enrico CarusI.
who was rehearsing n song. The biz
fellow was one of two private detectives
who, it is said, scarcely have left
Signor Caruso's meloGious presence
since certain big jewelry theft was
said to have been committed on Long
Island some time ago. Salvador Fana.
telli Signor Caruso's new secretnNy.
also said that the tenor has received
mo end Of black hand letters" lately.
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
By a Std0 Correspondent

Camp DIX, Wrightstown. N. j., Sept.
l4.--Autumn cleaning is being accom-
plished at Camp Dix. Everything is in a
state of hustle and 20. ..
The First Division, which gained all
sorts of glory during the war, Is moving
In regiment by regiment from Camp
Zachary Taylor, Kentucky. Each
company has to thoroughly clean its
buildings. Many heroes Of the Ar
gonne are now welding nothing more
deadly than mops and buckets.
More than one machine gunner of the
Third Battalion is beating loud tattoo
with hammer and nails on the tin roofs
that have become sieve like during the
many months Of diSusc. Some of the Of
ficers who won decorations leading their
men to gallant victories are now tucked
away in cozy quarters, issuing orders
over telephones.
What Sergeahts DO
The leather faced sergeants of many
campaigns can be heard bawling out to
some recently recruited members of the
First, down by the railroad tracks
where they are unloading train after
train OF supplies, that if they ever hone
70 be soldiers they must get the long
line OF freight cars unloaded, "pronto,I y
Ihe eager young fellows look up at him
In wonder and with renewed vipor nile
another sack on waiting truck.
The veterans say it takes them back
to the time they made camp in France
in the summer of II, but they regret
there isn't the thrill of battle to look
forward to. :" Course lot Of these new
Kids are. goin' to attend the Il. & v.
(Educational and Vocational, Schools)
whom fhpy n,knh,.
got something to look ahead to. bnt
what about us? We amt got nothin, to
learn, said one corporal with two
wound stripes.
Want Another Fight
And that is it; the young ones are
ambitious to learn, while their tutors
go about with tolerant demeanor, In
wardly praying for real fight again.
The army is planning extensive
courses in almost every sort OF trade
this year. One seventh of the camp is
to be devoted to teaching the men.
Nearly 400 teachers, both men and
women. from civil life will instruct.
As soon as the entire division is set
tied the men plan to have a dog show.
Undoubtedly there will be strong COM
petition in the polio dog class be-
cause so many officers and men brought |
dogs of that breed back with them when
they returned with the army of oc-
cupation from Germany. Sergeant
Hotflin. of the Second Company of the
Twenty sixth Regiment, has a pair he
cannot be beaten in the di-
vision. In fact, he doesn't believe any
body will ever try to beat them-they
are too wary of strangers.
A Mopping Professor
The Twenty sixth Regiment so far
is the only body of men assigned to
regular quarters. They have been
Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-14
LAKE TO REPLACE QUARRIES
Park viii Solve Problem That Wor-
rles Nelahborhood

One of the three abandoned quarries
which have been the cause of much in :
dignation among the residents in the
neighborhood Of Sixty fifth street and
Girard avenue because of the many
drownings of children. may be partly
filed in and converted into a lake, il
was learned yesterday.
This quarry is the one located in
Cobb's Greek Park, and under the
jurisdiction of the Fairmount Park
Commission. Alan Corson, engineer of
the Fairmount Park Commission, an :
nounced the commissions plan yes
terday. when asked what was to be
done in view of the mass meeting held
by indignant citizens recently.
In ten years ten boys have been
drowned In three quarries in the imme-
diate neighborhood, two of which are
owned by private interests. which have
expressed their willingness to have them
filled, and the third by the city. One
adjoins the Public Library at Sixty fifth
and Callowhill streets and another in
located at Sixty sixth street and Lovers
lane.