The New York herald., 1922-07-24
Unsafe Financial Houses
Will Be Reported and Pros
ecutiOn Assisted.
WORK ALREADY STARTED
Some Fly-by-Night Security
Dealers Ousted From Of
fices in Big Building.

Plans for a vast organization to
fight unscrupulous promoters of worth
less stocks and sellers of other equally
bad securities. who each year take
many millions of dollars from small
investors. have resulted in the. forma-
ton Of the Better Business Bureau of
New York City. Inc. Many great
financial and public organizations are
represented in the bureau, which has
at its head, in full charge of all. the
work which it will undertake, David
F. Houston. formerly Secretary OF
Agriculture.
For months the organizers have
been working on their plans. The i'm
mediate motivation. was the wholesale
failure of bucket shops and the vast
swindling of investors, American and
foreign. in the last few months. They
hope to accomplish, among other
things. investigation of questionable
financial operations and correction of
wrong practices. Offenders are to be
exposed and fullest aid will be given
in prosecution. The bureau is already
functionins at Offices just opened at
81 Broadway. ,r~
/ Assisting Mr.. Houston are II: J. Ken
ner. former director OF the National
XiEil4nce Committee. ana ! staff OF
trained aids. and Investigators. Jerome
Simmons is counsel for the bureau In
discussing the program bf work, Mr..
Houston said:
The Better Business Bureau conten-
plates service to the public and to le-
climate business which will be protec-
tive and preventive. The bureau will
conduct investigations continuously. not
sporadically. to support existing legal
agencies in, Kidding the community Of
law violators who fost spurious securi-
ties on the investing public or do a
bucket shop business. 1t will attempt to
do preventive work in the way of warn
ings to the public in specific cases of at
tempted fraud. In cases of wrong prac-
tice where fraud is not involved II will
see to correction Of mlsstatements 1t will
do constructive work also through edu-
cational effort to Bring small investors
10 better understanding Of the service
which legitimate investment houses rem
der. tc develop a fuller understanding
as TO safe investments and to increase
the present tendency of banks especially
throughout the narion to aid investors to
obtain information :
While the Better Business Bureau
will center its activities on local mat
ters, its work will be of nationwide sig
nificance, inasmuch as 1t will cooperate
closely with Better Business Bureaus In
thirty-six principal cities throughout the
country and with the National Vigilance
Committee Of the Associated Advertising
Clubs OF the World"
II. J. Kenner, in charge of investiga-
tion work. revealed that the bureau has
already entered actively into It's work
I'm the investigation Of a number of
suspected promotion propositions last
week." he said. we found some of the
new and handsome office buildings In
the city are infested with promoters OF
schemes having the earmarks of fraud.
The District Attorneys office and the
Post Office Department have made head
way against blue sky adventurers who
have selected New York as their seat of
operations, but many remain who have
swarms of statesmen at work among
small investors In Greater New York and
in smaller communities In this and other
States. AS fast as our Investigations re-
veal evidence OF fraudulent practice. we
will present facts to District Attorney
Banton and to United States Attorney
Hayward for their consideration"
Mr.. Kenner added that a merchandise
section Of the bureau to deal with mis-
representations In advertising and sale
of wearing apparel. household goods.
foods, &c, would be organized this fall.