Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-01-13
swlNDLERs FIND MECCA.
Flock TO New York When Driven
From Other Statees,

FROM Other StAteoo.
New York, Jan. 1S.--Stock promot-
ers and swindlers who have been
driven from thirty-eig states where
"blue sky" laws exist. are hourishing
In New York as never before, accord
Ing to Edwin p. Kilroe, assistant dis
trtct attorney In charge OF the In
|vestigation Of commercial frauds.
Mr.. Kilroe charges that most of the
operators are composed Of confidence
men, ex-convicts, race track touts,
gamblers and men of the baser sort
who. as soon as their crooked work Is
made public, move to another part Of
the metropolis and resume business
under another name.
TT is remarkable" says he, that In
this state, which Is the financial GEN.
ter of the world, the investing public
should be left without protection and
that the dark ase law Of caveat emp
tor should reign here"
Attacking the majority report Of
Governor Smiths blue sky law COM
mission az "a prayer to allow the
predatory Wall street interests to
continue their pillage without let or
hindrance.", Mr.. Kilroe, in "A report to
District Attorney Swami. opposes the
Recommendation to turn the prosecu-,
ton OF crooked Wall street concerns
over to four deputies and the attor-
ney general Of the stste.
The recommendation" he says,
that nothing be done by the present
legislature except the appointment Of
a commission to redraft the penal law
is jnexpedient and would accomplish
no good result. All Of the facts a
commission so appointed could pos
sibly obtain are now in-the possession
Of the district attorney Of New York
as the result Of some 1000 or 5000
complaints investigated in his office"
The methods employed by stock
Svtndlers to fleece the unwary are ex-
planned BY Mr.. Kilroe. In the old
days." he said. quicker lists were
prepared and uSed by those unscrup-
ulous promoters. On these lists were
the nasnee OF those known 70 be sus-
ceptfble TO the tllnionary offers made
by statesmen Of wosthlsss securities.
This list has now been cast aside and
today svsyy good citizen VINO happens
to be inexperienced In the world Of
finance II possible victim. provided
he has q small bank account or-sov-
eminent Dond1.
schools are established to make
the smooth-tongued salesman more
smooth and books Of obstruction are
prepared 80 that no one even with
small savings shall escape their lure.
This office, Is flooded with complaints
of tho shorn and pluoked who daily
stream from Wall street to the crimi-
nal courts building. The victims, in
many cases. have lost their life say
ings, the Widows mite. the liberty
bond bought in spirit OF patriotism
By 4 weekly deduction from the toll
ers wage. The savings bank book
ana the card OF war savings stamps
alike have found lodsment in the
swindler's net.
"The lure Of speculation has, Of
course. produced a corresponding
volume of attendant crime, corruption
and dishonesty. The increase in the
number and amount Of liberty bond
thafts during the past seven or eight
months is matter Of great concern
in the financial district and in the
administration Of the criminal law"
h Mr.. Kilroe advocates as a remedy
for existing conditions ~ the gov
eminent licensing and control Of
stock exchanges; (2) similar licensing
for stock. bond and other investment
security dealers: (3) driving OF the
New ork curb market from the street
las a public nuisance; a. COM
pulsory and complete public record of
all security sales and purchases with
in twenty-four hours: go similar
record of collateral deposited by in
vestors, the amo1nt Of brokers' lien
and names and addresses of person or
frm with whom collateral is re-
'hypothecated CO. complete public In
formation concerning. financial condi-
ton, plans, etc, Of concerns before
they may offer stock for sale, (7) q
federal blue sky law" which would
prevent swindlers In, other states from
doing business by mail, telegraph or
other interstate means with prospec-
tive victims in New York.
III. OBSERVATION-DISCLOSURES Z, W. rs.