Evening journal., 1921-06-17
gold Bricks IN
THE MOVIE GAME
SIS, 100000 Mulcted Out of
Public Through Glaring
Promises
NATIONAL BODY
STARTS CLEAN OUT
BY R. J. GIBBONS.

\ have mulcted the American public
a OF $3.50, ,OO0.O 900.
4 Now the motion-picture industry
is cleaning house.
The AK is swinging for movie
goldbrick men and Incidentally for
vultures who lure girls through the
agency OF fake movie schools.
An investigation made by the Wig
4 lance Committee of the National
Association of the Motion Picture In
dustry discloses:
THAT $3.50. 100000 is a conservs-
tive estimate OF pluckings by Wild
cat movie promoters.
THAT movie wildcatters took in
100000 during 1920 and never
paid back a cent in dividenda
THAT seventy illegal companies
were capitalized at $3.50. 900. 900. yet
not one ever sold a picture
THAT brokers and salesmen got
II $50 per cent commission TO market
movie stocks
THAT nearly every New York Of
n fee building has the name OF a mo-
III tion-picture company listed on its
lobby directory.
THAT some 5000 mushroom"
companies are now in existence.
iii THAT millionaires made by mo-
Fl tion-picture investments can be
counted on the fingers OF one hand.
THAT graft victims often are per-
sons who invest their life savings
tk Heading the Vigilance Committee
Its James r Quirk. editor of Photo
play Magazine, who recommends the
steps TO cleanse the NOV
|H6ng-picture ndustry-which ranks
a NTH among the industries OF Amer
ica-from its parasites and dis
1rediting influences:
FIRST: Make tho public wary.
{. SECOND. Secure passage OF uni
y form State laws making the sale Of
II any but accredited stock a felony.
~ THIRD: Arouse dormant prose-
81 cutting authorities.
FOURTH: Inform girls that never
n IN the history OF tho business was a
~ high-grade actress or actor ever
graduated from a screen-acting
{: school. and that no legitimate pro
+ ducer recognizes such schools
The first step to cleanse the In
~ dustry has been taken in Canada
~ The law requires new companies be-
fore Offering their securities TO the
q public. TO psove that they have SUI
"a ncicnt primary financial backing. a
ri guaranteed foreign market. and
~ practical experience
Quirk blames many chambers Of
~ commerce for much OF the harm
- done. saying they have been the '-in-
4 nOcent aids 20 sharpers" by gfvinI
assis1ance TO new companies in tbs
interest OF "civic pride"
They gave these modern Rufui
~ a. NmmHl
cities" he adds, "and never once did
a suspicion enter their minds tina
perhaps the promoters Offering q
give the home town a studio wer'
nothing but grafterS
1T Is unfortunate that this grea
Il industry has been turned into . 81
gantic swindle for unscrupuloul
gougers who have eclipsed the wild
est feats of frenzied finance ever az
W. tempted. not even excepting the oil
W slxinners and real estate takers"
The Actors Equity Association
postal inspectors and national adver
Using bodies are cooperating will
the vigilance Committee In its hgh
'.for a clean game and no loade'
Dice"
Twenty-seven proprietors % scree1
acting SCHOOLS were arrested recent,
in New York on charges OF fraud
grand larceny and criminal assault
on young women
II Funds for the committees opera
tions are supplied by legitimate an
established motion-picture produc
ers OF the country who have declares
.''war to the death" on the crooks
Here are some startling instance
where the movie sTindlers made nc
,hauis, disclosed by the COMMITTEES
I. Investigation
4> A man who owned nothing but
suit, a collar and some office furni
ture, opened an elaborate suit
When his books were examined h
fed with $40, 900 paid in by investor
Another wildcatter committed su
eide when his company was threat
ened with investigation after severs
W hundred thousand dollars failed
produce either pictures or dividend
A $1,000, 900, 900 sales campaig
engineered by another compan
which resulted in the loss OF 100000
paid In subscriptions and arrest
several persons for participating
the stock sales. More than 1000 pei
sons were victimized
Another promoter ruined thoi
sands OF investors in futile $4,000
600 venture. He used several hui
< dred thousand dollars to compile
S me prologue only Of one picture.
An unusual scheme with a relil
| ious appeal was broken up by post
Inspectors and security investigator
M Tho company was capitalized
$500, 900, and $1,000 worth Of stoc
Vas disposed Of before the la
stepped in.
W In Los Angeles another compar
sot away with a religious appeal
having set out to reform the pi
lures" A great part OF 100000
stock issues was grabbed up an
money lost by poor investors, inclul
ing an array of ministers and churC
54 Workers
Next came an alien who arrest'
M attention during the summer Of 49,
Nth a plan TO formulate 100000
W 600 international motion pictu
yyndicate TO corner The film mark'
Fie took about S2,O0O,OO0 from Anne
lean citizens. French police no
have him in custody and say he h
Confessed TO forgery.
There are some 100 other instanc
Of fraud so far revealed.
VARDON is GREATEST.
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