The New York herald., 1922-02-27

officials Of the law and representati
but business men and organizations
which form the backbone of the ma
tion's financial aud commercial life
now are making efforts in that direc-
ton.
! Effort or lack of effort. along that
line at Albany will be discussed sep
arately in a future article of this
series There has been considerable
agitation for an investigation. though
the feeling in New York city is rather
general that such an investigation is
somewhat belated for best results, in
addition to which the metropolis ap-
pears to be somewhat fed up on lcgis-
lative Investigations.
1 wouId Enforce Martin Law.
! Also there is feeling in financial
and business circles in New York that
the Martin law. which Is under the ad-
ministration of the State Attorney
General, is capable of much better en-
forcement than 1t appears to have had.
The Deuison bill. approved by the
Investment Bankers Association and
other financial and commercial organi-
cations. which was favorably reported
from committee last week. represents
the interest being taken in the situa-
ton in Washington. That bill, If en-
acted. will become national blue sky
law adapting to the national situation
many of the safeguards against WORTH
less stock already embodied i'll the laws
Of the several States.
AS is demonstrated by the fact that
the State maintains fairly we'll
patronized electric chair at Sing Sing.
the enactment of laws is not sufficient
to prevent criminal acts. The enact
ment and enforcement OF laws against
bucketing and stock swindling, there
fore. may hardly be looked upon as a
panacea.
What seems to be needed is some
thing that strikes closer at the root
of the matter than the mere pruning
out of undesirable sprouts after they
already have sprung up. There are
numerous practical ways of fighting
the bucketeer and stock swindler with
out waiting for the situation to de-
velop to the point where the law steps
in, and conscientious efforts are being
directed along those lines. The attack
is upon the bucket shops base OF sup
plies. Such efforts. OF course, are and
; should be in cooperation with the Fed
eral and State authorities. though not
, necessarily through those agencies. !.
Some Preventive Measures.
! Among these efforts, some Of which
have been under way for some time
and others just now being launched,
are the following:
The purging Of advertising space or
swindling schemes and OF misleading
J statements and the use of advertising g
space and columns OF newspapers ana
magazines for the education OF the
public In the matter of legitimate and
sound investing The Associated Ad-
vertising Clubs of the World long have
exercised a sharp eye for the fraudulent
advertiser and maintain for that pur-
pose a vigilance committee which mas
been of invaluable service to the Dis
trict Attorney i'm the present oriVe
against bucket shops.
There has been started recently r.
movement for the organization OF ad-
yertising and publicity investigating
agencies with the aim OF promoting
honest advertising. Incidentally. 1t viii
be the purpose OF this organization also
to prevent the operations of such rating
agencies as were described In these
columns last week. The newspapers
welcome these efforts and VIII leno
their cooperation.
The work OF the various thrift or
ganizations which came into being DUR
ing the war through advertisements, or
COURSE is we'll known. The extension
and intensifying of this work through
an organization now being perfected
will be discussed later in this article.
- satI fsae at
base of supplies OF the bucket shop is
to nullify the effect of the use OF sucker
lists. II Is virtually impossible to pre-
vent bucket shop and fraudulent stock
promoters from obtaining lists of names
from which TO draw their patronage.
but by educating the public II is hoped
to show them the folly of responding
to such appeals.
Aid OF Banks Being Enlisted.
A vigorous campaign Is being
launched also which will have for its
object the limitation Of banking sane
ton. That effort Is directed at inter-
esting the banks In refusing their facili-
ties to brokers and promoters whose
integrity they have any reason to doubt.
and particularly to refuse their indorse-
ment OF such concerns. The ease with
which such Endorsements have some
I
sized In several of the recent failures In
the financial district
Refusal of access to organized stock
markets is another means Of putting nn
end TO bucketing. Expulsion Of n brok-
erage firm from the New York Stock
Exchange. the Consolidated or the Curb
almost inevitably Is followed by that
firm going out or business. That also
is true when tho New York stock Tx
change takes its tickers out OF any
brokerage house. Seymour Cromwell.
president of the exchange, has declared
that no brokerage house which buckets
it's orders or conducts its business In
any other ilcgitimate fashion shall Use
the facilities OF that exchange.
Large industrial and public Utility cor
porations in the last several wears Fave
begun intensive campaigns looking to
customer ownership OF their stock.
These and most of the efforts above
outlined are individual and isolated at
tempts IN the direction OF educating and
| safegusrdinF the investing public Now