The Washington herald., 1921-04-22
THOMPSON FAVORS
FRAUDULENT LAW
FOR FAKE DEALERS
Stock Exchange Heads
Urge Measure to Pre-
vent Issuance.
SIMILAR TO MD. LAW
Not Anxious TO Regulate the
Wildcat Schemes Through
Blue Sky Law.
SIMILAR TO MD. LAW

- ~-
Prevention of the issuance OF
worthless stocks and bonds in the
District of Columbia through a
fraudulent securities Law. similar 70
that Of Maryland. was recommended
by Eugene Thompson. prominent
local broker and president Of WASH
lngton Stock Exchange. at a lunch
con Of the District Life Underwrit-
ers Association TO District bankers
In the Raleigh Hotel yesterday.
Thompson said the measure he
urged would be more effective than
blue sky legislation. Bad secur-
1ties totaling approximately 100000
are issued yearly in the District,
Thompson said.
Fifteen thousand dollars has been
raised by the bankers of Maryland.
principally OF Baltimore" said
Thompson. ito aid in the hght on
fraudulent securities The law has
worked satisfactorily in Maryland.
as 81 fraudulent promotions have
been chased out of the state That
law has not worked so well for the
District. since I personally know
that Of these 81 schemes have ap-
peared in Washington"
THOMPSON declared that the insur-
znce men Of Washington have felt
the influence of the frauds coming
here from Maryland. since investors
On these dubious enterprises are f-e-
uuently obliged to borrow money on
their noIicies. or cash them outright.
.Get Them OUT
I'VE are not anxious to regulate
wildcat schemes here through blue
hky faws," said Thompon, but to
set them out Of the city"
Thonnpson reported that a firm IN
r1shfnEton. dealing in foreign sx-
rhanre. had changed its address
fhres times in .he past six months,
and had changed its name accord
ingiy The firm. according to
s-raa1. was earning $4,000 a
He stressed the hope that the
raslosn lRugurated this year of not
rffr : the names of investors IN
scs gtiblic service corporations
sgt entinue for the protection Of
-asr srre Stors against unscrupulous
pronotera
Ths value of insurance. its cl7se
stletion to banking and the need for
cDoperation between bankers and in
sur1nca men were discoursed upon
~ col Robert ". Harper. president
q ne local bankers association:
Ec1rcsentative Louis T. McFadden.
cnni-rnan Of the House committee on
b1nf q and currency; John Poole.
pre- mt of the Federal National
~ and John Dolph. local superin-
II OF the Metropolitan Life In
Eurancs Company. Eugene G. Adams.
presiSsnt or the underwriters body.
presided.
The guests of the underwriters
were:
F. C. Addison. jr.. r. Hugh Bagby.
n. W. Barr. L. E. Breuninger. q.
A. Bowles. Taylor Burke. Wade H.
Cooper. Victor 3. Deyber, Joshua
Evans. jr.. Mark F. Finley. Robert
V. Fleming. W. ]. Galliher. A. S.
Gardiner, Albert s. Galley. Maj.
Erskine Gordon. Col Robert ".
Harper. Harry V. Haynes, Thomas
Up Hickman, William c. johnson.
Uohn B. Larner. Dana Lincoln, Ar
thur ]. Linn. John D. Leonard. z.
A Livingstone. Fred Mckee. Ar
chic McLach1en. L. P. McLachlen,
William Muehleisen, Roy I. Neuhau-
ser. Fl. I. Offutt, Maurice Otterback
W. y. Payne. jr.. Mr.. Pettitt. Julius
J. Peyser. John Poole. c. II. Pope.
J. NJ Riordan. Francis NJ Savage,
Ccrcoran Thom. E. e. Thompson.
James Trimble. W. ]. True. Charles
W. Warden. George w, white. Miss
NJ. J. winfree, Irving Zirpel. George
o. watson.