The Washington times., 1922-09-16
SPURIOUS
VEN TURES
MUST QUIT
Assertion Made 50 Per Cent Of
Stock FIotations Here
! Are illegal.

War is to be waged on fake
stock promoters in the District.
So many have been swindled in
the last year that public-spirited
citizens have become riled and
have banded together for the
purpose of ridding the city Of
their odious presence.
Leaders Of civic organizations and
business men, in conjunction with
newspaper managers, appeared be.
fore the District of Columbia grand
jury yesterday with the avowed aim
of helping rid the city Of the esti-
mated 100 or more wildcat and fake
stock promoters that are infesting the
District. A conservative estimate of
the amount taken from the public |
purse by these operators is 81 1,000..
900 annually.
One reason why the District -
mecca for these nefarious business
men is because there is a laxity of law |
regarding the fraudulent schemes by
which they operate. At present lnere
Is a fraud bill before Congress, but
II has been deferred from time 10
time. In view of the national legis-
latfon that is before the nations law
makers, II is problematical when the
bill will see daylight again. However.
with the demand that is being made
by the City's influential representa-.
tives, 1t is believed that some solu
tion of the problem will soon be
reached.
Fifty Per Cent Fraudulent.
For the first time in the history
Of the Nations Capital, such a step
as was taken yesterday was consid-
cred as imperative. 1t Is true that
the detectives have had cognizancc
OF much of the unethical, and, in
some cases, absolutely illegal. opera.
tions of men who pose as representa- !
tive and influential men of business,
but they were pOwerless to remedy
the situation because of the lack OF
power TO prosecute.
Eugene E. Thompson, foreman of
the grand jury, said yesterday that
fully more than one-half of the pro-
motion schemes that exist in the
District are fraudulent He said that
the morally illegal promoter broad
casts misleading statements N re-
buIO " hhS olOIh IoI IHtSt
statements are so clever that unless
the prospective purchaser is alive to
the market figures, he will easily
fall a prey to the "get-rich quick.
sChemers."
A case OF how local banker was
swindled out of $4,000 by fake oil
promoters was told TO the grand jury
by Francis x. Wholley, director OF
the Better Business Bureau. Mr.. |
Wholley pointed out that one obsta.
Gle in the way of getting" these
fake operators is that the victims
are abashed at giving testimony
against them. He emphasized the
fact that II anyone should fall a
prey to these INSCRIPTIONS opera
tors, they should at once acquaint
the United States District Attorney
with all the facts in the case.
Realizing that there is an urgent
need for Kidding the District of the
fakr stock operators, the grand jury
rcqu ! cd civic bodies, the better
bus ...ss bureaus and newspaper
M na gers to place every obstacle
posi- ole in the way of the wildcat
Schu mer and the fake oil stock
promoter.
II Is matter of record that
young women employees of the Gov.
ernment-girls who have been saw,
ing their every Cent-have been
dupCd by the unscrupulous promot.
ers. In some mysterious manner
the operators learn OF the hoard
that this or that frugal person has
saved and all the bewildering 1:g.
ures Of a golden dream are laid be.
fore him by the fake stock pro.
moter.
Those Cooperating.
Among those who promised thei-
cooperation In helping to eliminate
the cancer spot Of the business life
OF the natior's capital were @. 10
gan Payne, publisher of The Wash.
ington Times; Arthur ID. Marks. of
the Washington Post: Henry Han.
ford. of the Washington Star: J. e.
Rice, of the Washington Herald:
Joshua Evans, jr.. president Of the
District of Columbia Bankers Asso-
citation: William Knowles Cooper,
president of tn "rtary Club: Ru-
dolph Jose, pc Of the Civitan
Club: Thomas Bradley, Washington
Board Of Trade: Harry King. Mer.
chants and Manufacturers Associa.
ton, and United States District At.
torney Peyton Gordon.
These representatives of the bust
ness life and press of the District
suggested various methods by which
the fake promoters may be dealt
with.
The foreman Of the grand jury
told Of an amazing feature of the
swindling scheme. He said that
twenty-five school teachers OF the
city were innocently holding out
glaring propositions to persons who
were as unsuspecting as were they.
So genuine did the propositions ap-
pear that the teachers friends were
duped.
II residents Of the District have
to invest there Is one safe way for
them and that Is to consult relia-
BILE broker or banker. Any promoter
who offers unusually large returns
for slight inyes 'ments ma generally
he branlcu IS 'ypresenting some in
stitu on tia t. not stabl A ma
ture business nHn would not invest
his money in s hu"Oe hat is Dur.