The evening herald. (Klamath Falls, Or.) 1906-1942, 1920-01-23
MANY FLEECED
BY sALESNEN
Of FAKE STOCK

NEW YORK, Jan. 23 Stock pro-
moters and swindlers who have been
driven from 3S states where blue
sky" laws exist are flourishing in
New York as never before, accord
ing TO Edwin p. Kilroe, assistant dis
trict attorney In charge of the inves-
tigation OF commercial frauds.
Mr.. Kilroe charges that most of
the operators are composed of con
fidence men, ex-convicts, racetrack
tonts, gamblers and men OF the baser
sort" who, as soon as their crooked
work is made public. move to an
other part Of the metropolic and re-
sumo business under another name.
1T is remarkable" says he, that
in this state, which Is the financial
center of the world, the investing
public SHOULD be left without pro-
lection and that the Dark Age law
of cayeat emptor should reign here"
Attacking Che majority report OF
Governor Smiths blue sky law COM
mission as "a prayer to allow the
predatory Wall Street interests to
continue their pillage without let or
hindrance," Mr.. Kilroe, in report
to District Attorney Swami, opposes
the recommendation TO turn the
- 20 oil nj
concerns over to four deputies and
the attorney general of the state.
"The recommendation,n he says,
that nothing be done by the present
legislature except the appointment of
commi ssion TO redraft the penal
law is inexpedlent and would accom-
plish no good result. All of the
facts commission SO appointed
could possibly obtain are now in the
possession of the district attorney Of
New York as the result of some
1900 or 5000 complaints investi-
gater in his office"
TIE methods employed by stock
3windlers TO flees the unwary are ex-
planned by Mr.. ki lroe. In the old
days" he said, sucker lists were
prepared and used by these unscru-
puious promoters. On these lists
were the names of those known to
be susceptible to the illusionary Of
fers made by statesmen OF worthless
securities. This list has now been
cast aside and today every good citi-
zen who happens to be inexperienced
In the world OF finance is a possible
victim, provided he has small bank
account or government bonds.
schools are established to make
the smooth-tongued salesman more
smooth and books of instructions
are prepared so that no one even
with small savings shall escape their
lure. This office is flooded with
complaints of the shorn and plucked
who daily stream from Wall street
to the criminal courts building. The
victims, in many cases, have lost
their life savings. the widows mite.
the lib erty bond, bought in spirit
of patriotism by weekly deduction
from the toiler's wage. The savings
bank book and the. card of war saw
ings stamps alike have found lodg-
ment in the swindler's net.
hA 1,,~ 80 10 hoc nf
course, produced corresponding
volume of attendant crime, corrup-
tion and dishonesty. The increase
in the number and amount of Liberty
bond thefts during the past seven or
eight months is m after of great
concern in the financial district and
in the administration Of the criminal
law
Mr.. Kilroe advocates as a remedy
for existing conditions Cd the gov
ernment licensing and control of
stock exchanges; ca similar licens-
| ing for stock, bond and other invest
ment security dealers; (S) driving
OF the New York curb market from
the street las public nuisance (4)
compulsory and complete public re-
cord of all security sales and pur-
chases within "a hours; cd similar
record of collateral deposited by in
vestors, the amount of brokers' lien
and names and addresses of person
or firm with whom collateral is re-
hypothecated; (6) complete public
information concerning financial
condition. plans, etc., of concerns be-
fore they may offer stock for sale
1 % federal ''blue sky law" which
would prevent swindlers in other
states from doing business by mail,
telegraph or other interstate means