The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-01-24
STOCK SWINDLERS
N NEW YORK
They Flourish as Never Before
in Gotham

New York. Jan. 2O.-Stock promot-
ers and swindlers who have been driv-
len from 3S States where blue sky
laws exist, are fourishing in New
York as never before. according to
Edwin p. Kilroe. Assistant District At
torney in charge Of the investigation
of commercial frauds.
Mr.. Kilroe charges that most Of the
operators are composed OF conn
dence men, eX-convicts, racetrack
touts, gamblers and men of the bas-
er sort who, as soon as their crook
ed work is made public. move to an
other part of the metropolis and re-
sumo business under another name.
Tt is remarkable he says, 'that in
this State, which is the financial cen
ter of the. wolld, the investing pub
lie should be left without protection
and that the Dark .,.ge law of caveat
emptor should reig1. here
Attacking the majority report OF
Governor Smiths Blue Sky Law Com
mission as "a prayer to allow the
predatory Wall Street interests TO con-
tinue their pillage without let or hind
rance" Mr.. Kilroe, in a report TO Dis
trict Attorney Swami, opposes the rec
ommendation TO turn the prosecution
of crooked Wall Street concerns over
to four deputies and the Attorney
General of the State.
1.-The recommendation he says,
'sthat nothing be done by the present
legislature except the appointment OF
a commission to redraft the penal law
is inexpedient 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
swindlers1 TO fleece the unwary are ex-
planned by Mr.. Kilroe. I'm the old
days. he said, sucker lists were
prepared and used. by these unserupu-
lus promoters. On these lists were the
names of those known to be sus7
ceptible. 20 the missionary offers made
by sales1uen Of worthless securities.
This list has now been cast aside and
today every good citizen who happens
to be inexperienced in the world OF
finance is possible victim, provided
he has a small bank account or gov
ernment bonds
schools are established to make
the smooth-tongued salesman more
smooth and books Of instruction are
prepared so that no one even with
small savings shall escape their hne.
This office is flooded with complaints
of the shorn and plucked who daily
stream from Wall Street to the Grim
inal Courts Building. The victims. in
many cases, have lost their life saw
ings, the widows mite, the Liberty
Bond bought in a spirit Of patriotism
by a weekly deduction from the toll
er's wage. The savings bank book and
the card Of war savings stamps alike
have found lodgment in the swindler'si
net.
The lure of speculation has. OF
course. produced Il corresponding vol
ume of attendant crime. corruption
and dishonesty. The increase in the
number and amount Of Liberty Bond
theftS during the past seven or eIght
months is a matter of great concern
in the financial district and in the Id
ministration of the criminal law.
MIR. Kilroe advocates as remedy
for existing conditions % the gov
ernment licensing and control Of stock
exchanges. CD similar licensing for
stock. bond and other investment Sc
curity dealers: go driving Of the New
York Curb market from the street
'as public nuisance" az. compul-
sorry and complete public record OF all
security sales and purchases within "A
hours: 90 similar record of coliaterai
deposited by investors. the amount
of brokers' lien and names and ad-
dress of person or firm with whom
collateral is re-hypothecated; (e)
complete public information concern
ing financial conditions, plans, etc. OF
concerns before they may offer stock
for sale; CD a Federal Blue SKY
Law which would prevent swindlers
in other States from doing business
by mail, telegraph or other interstate
means with prospective victims in
New York.