The New York herald., 1922-02-25

| ing through a legitimate broker or
am getting into the clutches of a
bucket shop? There is no way to tell
| positively. But here are two ear
marks which it might be well to re-
| gard:
F'irst-If the broker offers to sell
to you on a margin or at interest
rates less than those being currently
charged it is wise to give him wide
berth. Honest, legitimate business
must have enough overhead charge
attached to it to carry it. No business
can exist legitimately without charging
enough for that purpose.
Second-If the broker fails to fix
specific and reasonably substantial
installment unit, payable at regular
and stated intervals, it is a good time
to sidestep. Regularity and promptness
are as essential to the life Of business
almost as money itself. Therefore.
when the "broker" tells you that if you
take the stock you can "pay whenever
you happen TO have the money handy"
you might reasonably take it for
granted that the reason for his len
iency is that no loan is contemplated
for the purchase of the stock; that,
therefore, no fixed rate Of income is
needed to meet a loan, and logically
that no purchase of stock is intended.
Cheap SwindIinE Exposed.
Perhaps no more vivid illustration
of the combination Of all the elements
of bucket shop swindling through the
installment game. together with the
widest responsibility. ever came to
light in New York than is furnished
in an incident of last week. Fortu-
1 nately, the scheme failed to work in
the one incident known. but there is
no way Of telling in how many other
instances it has worked. This is what
happened:
The residence telephone Of a we'll
to do woman who might be expected
to have a little money rang one morn
| ing last week. A voice on the phone
went into the time worn trick of ex-
planning that this was the well known
brokerage house of So & So talking,
and that the woman's name had been
given to them by "a friend"
So & So wished to interest her In
buying few shares of Industrial (the
voice named a corporation whose
name Is known all over the country
and In every household) on the in
stallment plan. exactly like the COM
pany sells to it's own employees"
He explained that the stock would
pay or per cent. and she could
pay for it any way she liked
"You just make out a check for
s140 to cover margin for ten shares
and I'll send a boy right over for It,
After that you can pay just as You
feel like it-$10 one month and not
but IS the next. II you do not feel able
to pay so much"
The woman was not interested
The salesman. however. thought SO
we'll Of the opportunity ne was offer
ing that he asked her to think II
over" and he would call her again the
next day. Maybe she would change
her mind.
office in Telephone Booth.
That night the woman advised her
son of what had happened. Her son
being an up and doing young business
man, told his mother If the salesman
called again to tell him that her son
was interested and for the salesman
to leave his telephone number. The
salesman called again, as he had prom
ised; was delighted to know that the
woman had interested her son in the
proposition, and left his telephone
number. The woman telephoned the
number to her son, who Immediately
got information" on the wire and
learned that the number was that OF
a public pay booth in the lobby of a
building in lower Manhattan.
He called the number. expecting. of
course. that he would be unable to
locate the person who had called. He
was surprised, however, when the
"salesman's" voice appeared on the
telephone. Then he carried on quite
an extended conversation. but not
urally the son did not let himself be
persuaded to buy the stock.
When he asked the salesman" the
name and address OF his concern he
gave an address totally different from
that at which the telephone was To-
Gated. Moreover. there was no broker
age house of the name given at the
address given.
The young man was able to learn
from the telephone book before the
"salesman" cut off that the firm name
was not listed In the telephone book,
and called the "salesman's" attention
to that fact.
mo, of course not" glibly replied
the salesman. I'VE have been open
in. New York a little less than six
months and Just missed getting in the
last telephone directory. But IL YOU
ever deal In stock you could hardly
have missed hearing of us, because we
are one of the biggest houses in the
financial district"
There Is every indication that this
''big house" is nothing morN than two
or three men without an office. doing
busincss with a sucker list from a
public telephone booth. The matter
is under Investigation.