The New York herald., 1921-03-11
Prosecution of SWindlers Is
Provided in Pitcher
Resolution.
REAL CLEANUP PLANNED
Appropriation of $4,000 Is
Asked-Report to Be Made
to 1922 Legislature.
speeial Despatch 10 THE NEW AoRK HnsALp
New York Hernld Bureau,
Albany, March 10.

Albany, Mnrcn ~.
The Legislature is going to make
thorough investigation of bucket shops
and questionable stock jobbiag in New
York city's financial district, Senator
\ Fred B. Pitcher of Watertowr pre-
sented a resolution to-day creating a
committee to which the State is 70
give wide powers to investigate and
prosecute stock swindlers.
While the investigation + to be di-
rected mainly to the bucket shops. the
committee will have authority 10 go
into Wall street and inquire into the
practice of making wash sales to evade
the income tax law. The committee
will go after the spectators and
+, profteers who manipulate prices for
quick profits. Thousands of com
plants have come to the lawmakers
this year regarding alleged bogus oper-
ations.
The proposed investigation will take
the place of all legislative activities
for this session dealing w.h stock
Jobbing. There are pending several
bills providing for regula II Of the
sales of securities of all classes and
restricting blue sky operations.
The investigating committee Is to be
composed of flve Senators and fve As
semblymen. and is to have power 10 ''in-
vestigate and ascertain whether any
person, copartnership or corporation
made any contract respecting the pur-
chase or sale, either upon credit or
margin. OF any securities or commodi-
ties. not intending the actual bona fide
receipt or delivery OF any such sectri-
ties, but intending settlement of such
contract based upon the difference in
public market quotations OF prices at
which said securities or commodities
= are. or are asserted 10 be bought. or
sold. or Is conducting or has conducted or
operated any bucket shop and report
and disclose the facts showing the ma
ture and extent OF such operations"
Pitcher Explains Measure.
Speaking OF his resolution, Senator
Pitcher said:
This resolution is not inspired by an
unfortunate experience Of my own or by
any desire on my part to serve upon an
investigating committee ] have not
been stung, nor am ! concerned with
any particular investments In a bucket
4 shop enterprise.
This resolution looks 10 an attempt
to put an end. IL possible. to the unlaw-
fui practices Of what appears 10 b.
well organized band Of financial high-
waymcn, who in my judgment are doing
more to retard q recovery TO normal
. conditions in the business and financial
world. and are doing more to produce
I confusion ana to continue 70 disturb
conditions in the economic. Industrial
and financial world. than almost any
other one cause.
DAY after day there are being sold
or pretended to be sold In the ex-
changes OF this State and upon the
curbs thousands of shares OF securities
OF corporations and industries Of IL,
highest financial standing, when IN fact
those shares have no existence whatevce
In the fact.
This disturbs the whole financial
world. It continually gives ground for
the apprehension and the fear that loans
which are secured by collateral arc be-
coming poorly secured. when IN fact
there Is absolutely no excuse or reason
other than the raids made upon these
securities by these conspirators, and in
face OF conditions which should enhance
rather than impair the value Of securities
SO deposited as collateral. the value Of
whose securities are. at least upon paper
reduced millions OF dollars In a single
day solely as a result of the tactics III
the men who are pursuing these prac-
ticeg.