The New York herald., 1922-02-13

DuOP Woui0 quASAiJ AAShs oP~AA S~S
could be found. More than 10,000,(
900, ,000,0 Of securities backed by tn
gorgeous and glorious an opportunity
brief period elapsing since the close
OF the war in 1918 thieving brokers
have developed special methods for
getting their clutches upon form OF
wealth they had no chances at be-
| fore.
Thus circulars go broadcast. throw
ing vague but none the less effective
reflection upon the advisability or
holding Liberty bonds. and the
ubiquitous producer" roves always
with an eye peeled for o gullible owner
of the Government securities.
Patriots Robbed Heartlessly.
The operation Of the fake brokers
in this highly specialized field has
been characterized by the District At
torney's office as probably the most
reprehensible and heart breaking
activity of ALL Not only is it piracy
upon the patriotism of the American
people, but in almost every case IN
which the bucket shop operator taxes
Liberty bonds the securities represent
the life savings Of the owners and
the last penny. 1t will be shown
| presently how this is true.
The widespread success OF the
bucketeer in robbing Liberty bond
| holders can be found in FIVE minutes
in the bankruptcy courts, at the Dis
trlct Attorneys Office or in almost any
magistrates court in New York.
James J. Wilson, Deputy Assistant
| District Attorney. in charge OF
bucketshop complaints in the First
District Magistrates Court, which
covers the downtown financial dis
trict. is authority for the statement
that 80 per cent. Of the complaints
received involve loss Of Liberty or
Victory. bonds. That seldom repre-
serts the total loss to the victim
through bucketshop operations, but
the Liberty bond--one, two or ten
almost invariably is listed among the
| losses. t
Many Liberty Bonds Losers.
When it is taken into consideration
that the estimate of District Attorney
.Joab II. Banton that 100000 persons
in New York have been victimized by
bucketshops is regarded as moderate
| figure, an idea of the extent OF the
rayages upon Liberty bond holders
may be gained
The heavy percentage of victims. 1t
appears, is among the holders of a.
small number of bonds. bought often
at personal sacrifices out OF sense or
I 4. IrId
no means has an exclusive place. In
the list Of creditors of DER & Co.,
the New York stock brokers who re-
Gently failed for $4,000,000, appear per-
| sons among whose claims are blocks or
Liberty bonds running as high as
$4,000.
Daniel w. Blumenthal. counsel for
some OF those creditors. declared that
lin his examination for reclamation
proceedings he had discovered the less
| Of Liberty bonds, totaling approx
/ mateIy $250,000, and he is not yet
| through with the work.
Mr.. Blumenthal said also that his
| investigation had disclosed that the
DER concern had men who made
special effort to obtain the confidence
| of Liberty bond owners and persuade
them to turn them over to that
brokerage firm.
Campaign On In Cleveland.
campaign of that sort. he said.
was found particularly in Cleveland,
where Dier- operated n branch. The
operations which Mr.. Blumenthal
found in Cleveland are typical In that
the main argument was: Why hold
your Liberty bonds at per cent.
when you can put your money into
other securities paying and 10 per
cent?
! That is a favorite argument OF all
bucket shops. and was effective with
appalling results a year or SO ago
when Liberty bonds first took slight
drop in quotations. The argument
then was almost ironclad when pre-
sented to the uninitiated. for the rea-
son that the drop In price was oc-
casioned In large measure by the
necessity OF business liquidating the
large Liberty bond holdings to get
quick cash.
with selling transactions of large
holders whose names were well known
to back his argument. the producer
had little difficulty in pursuading the
small holder that the big holders were
turning loose their Government bonds
to invest in securities paying bet
ter return.
Vague insinuations were made then
not only against the bonds themselves,
but against solid. legitimate banking
and brokerage houses IN general. The
tone of those insinuatlons was; do