The New York herald., 1922-02-20

the Investment Bankers Association es-
timated it at $500. 100000 a year.
"On February Is. 1922, Attorney Gen.
eral Daugherty reported no less than
4S0 cases involving S140.011, ,231 mulcted
from a gullible public pending before
Federal courts alone. At the fifteenth an
nual convention of the Association of
Life Insurance Presidents in the Hotel
Astor last month Alfred r. Horr. vice.
president and treasurer Of the Equitable
Life Assurance Ssociety, urged the for
nation Of a national organization of
financial institutions to launch an active
campaign to protect the public. who lose
S7O0.000.000 every year.
Favored by Daugherty.
'grhis is the psychological time to
strike an effective blow against stock
swindlng and all forms of commercial
and financial frauds. Attorney General
Daugherty recently called conferences of
all Federal, State and county prosecu-
tors to stop the so-called crime wave.
He has gone on record In favor of uni
form blue-sky legislation. About forty
States have so-called blue-sky laws.
Some of these laws contain provisions
which. IL strictly enforced, would inter-
fere with legitimate business enterprises.
little business experience and practically
no conception OF. the real nature of in
vestment banking. The sponsors of the
laws have not fully appreciated the i'm
portance of converting idle capital into
productive force, nor the great service
which the banker renders as the agency
through which the conversion occurs.
Personally, / do not believe that
State legislation. in itself. is adequate to
end this evil. The solution lies in Fed
eral legislation as was recommended
by the Treasury Department during the
exposure of 1918, supported by uniform
blue-sky laws in every State and aided
by National Vigilance Committee of
representatives of every prominent fl
nancial, business, merchant and manu-
facturers association or organization in
the country.
ITO accomplish this a conference
ought to be arranged in New York to
be attended by the Attorney General,
the Federal and County District Attor-
neys, and representatives Of the New
York Stock Exchange, the Consolidated
Stock Exchange, the New York Curb
Association. the Investment Bankers AS |
sociation. the National Credit Mems As
sociatlon, the Associated Advertising
Clubs Of the World, the Merchants AS
sociation, and Chamber of Commerce to
arrange for national convention in |
Washington of the various blue-sky
commissioners or delegate appointed
by the Governor to draft "A national Sc
curities act and a uniform blue-sky law
70 be adopted by every State"
Brokers Favor Licenses.
Mr.. Banton's suggestion for the licens- |
ing or brokers agrees with the proposal |
made the other day by George r. Silk |
worth, th,president of the Consolidated Stock |
Exchange. 1t was ascertained yesterday |
that representatives of twenty firms con- |
nected with that Exchange had met on |
Saturday and after discussing the stu |
alton had agreed to hold series of |
meetings and to cooperate with the Ex- |
change In the investigation into the |
affairs of its own members, which the |
organization Is making and which was |
announced by Mr.. Sllkworth at the time |
he told of the expulsion of the firm of |
r. II. MacMasters & Co.
Those present at the meeting, which |
was held uptown, were members of |
representative legitimate firms The |
chief thought in the minds of those pres
ent was the offering of constructive sug-
gestions which would restore the much