The New York herald., 1922-02-20
NATION is HONEYCOMBED A
WITH BUCKETEER FRAUDS

lost. 1t happens that many thousands
of dollars are sent in to the bucket
shop through this form of solicitation.
ers by the bucketeer at his leisure and
in his own devious ways.
Travelling Statesmen Expert.
But it is the travelling producer who
is depended upon most largely by the
house operating out OF New York.
This gentleman is the top of the heap
in the way of statesmen. His appear
ance as well as what he has to say
must breed confidence. And he must
be able to talk-not as the ordinary
telephone salesman who shoots line
Of chatter as rapidly as he can, hop
ing to keep his prospect from gain
ing time to think-in convincing and
dignified manner. He must be able to
cope with the smart business man In
any conversation regarding not only
market conditions but farming, labor
economics and all the lines related to
the general business situation. He
must be able to do this with such
promptitude and assertion that it
sounds as if he has his finger right
upon the very life pulse Of business
as it courses through New York.
The travelling salesman Of bucket
shop covers his itinerary for four or
five days a week and then goes back
into the office to report progress and
receive further instructions.
tho "a ~,
Offices" to make special call upon
an out Of town customer. who. of
course, does not suspect the plot to rob
him, in two cases out Of three works
hard upon the vanity Of his prospect, and
landing certified check is no hard job
at all for first class travelling pro-
ducer. Not only that. but the chances
are, especially If the customer is al
lowed to appear to win some small
profits, the travelling salesman will find
himself entertained at his customers
club, where he Is introduced to half a
dozen other prospects.
In this fashion the out Of town man
is landed with fair ease, and his money
is taken away from him by any Of the
rmethods already described and now
familiar.
Bucketeer Has Cousins.
Closely akin to the bucket shops out
Of town operations is that Of the Wild
cat stock promoter. While the buck
eteer may deal in listed legitimate
stocks worth the money II they were
ever delivered, the wildcat stock pro-
moter usually is seller Of absolutely
worthless securities. And that sort
of swindler probably Is more preva-
lent throughout the country and equal
ly as damaging as the bucket shop
operator.
That scheme amounts simply to pro-
noting a company-oil, mining, mo-
ton picture or any of a dozen other
classes of enterprises out OF which it
Is generally known that much money
had been made-selling the stock,
which Is virtually worthless in the first
place, and keeping 80 to 60 per cent.
of the proceeds as remuneration for
floating the issue.
1t is not infrequent in a campaign
of this sort for crews of men to be
ScIl lHtO d tOWH VI StCtiOu VI stlit COuil-
try for the purpose OF combing the Sec
ton for every dollar that can be
picked up. Not only the towns but
the rural districts are worked in that
fashion, the salesman usually going
along the highways in an automobile
and stopping at farmhouses with his
wild tales of vast fortunes to be made
in his stock. To the farmer who gets
his money by continuous and painful
toll it looks like a godsend.
One company of this sort which has
come to the attention Of THE New
York HERALD had 40 offices in the
Eastern States, employed 1,500 sales
men and had $4,000 clients. The usual
capitalization" of fake stock COM
pany is $1.ooo.oO0 or 100000. but
this concern foated couple at $5,000.-
600 and then launched into one whose
capital was to be 30.000,000.