The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1922-03-31
SMOOTH CROOKS
STEAL BILLIONS
Small Investors Robbed of Saw
ings by Bunco Men.
GENERAL CLEANUP PLANNED

GENERAL CLEANUP PLANNED
Rigid Probe Being Made OF Bucket
Shop Activities by Federal Authori-
ties-Poor Widows and Orphans
Among the Victims of Slick Stock
Salesmen-Many Have Lost Every
Cent of Life's Savings to Ruthless
Money Sharks.
More than $4,000, 100000 has been
swindled from American investors by
slick stock statesmen during the last
four years, according to officials who
are engaged in a nationwide probe of
buciSet-shops and fake stock PROPOSE
tiOns. Most of this money, ii was said,
was mulcted from poor widows and
working men, who entrusted their saw
! ings of years into the hands Of smooth
sharpers. With federal agents taking
hand. and full cooperation promised
by Attorney General Daugherty. a gen
eral cleanup of illegal stock transac-
tions is seen by officials who are push
! ing prosecutions against the alleged
/ brokers.
While New York city leads in the
prosecution OF bucket-shop promoters
in the present nationwide cleanup
campaign, there are total of 4SO
cases in federal courts, according TO
/ A..o,.,o., Co,o.a1 nau0hartv In uhioh
STA persons have been arrested or in
dicted.
Not Confined to Brokers.
Most of the cases, the attorney gen
eral explained, were fake oil stock
companies, although the swindling
schemes ranged from bucket-shops and
mining stocks to patent elephant
/ catcher promotions. Rich haryests
are reaped by swindlers, he asserted
because people do not take pains to in
vestigate what they put their money
into.
The Department of Justice, Mr..
Daugherty continued, comes into the
prosecution of such cases through vio-
lation Of the postal laws in the use of
the mails To defraud, but he said that
i'm his opinion the matter was one for
state action. A conference Of state
blue sky law commissioners, he Sug-
gested, should draft uniform law
carrying n uniform punishment for
stock swindlers He said also he be-
lieved i'm more stringent laws by the
states and heavier penalties In such
cases
Missouri Led In Victims.
Quoting from his reports. Mr.
Daugherty said the Northern district
of Missouri led in the amount involved
I'm pending fake stock cases, with q
total of $31. .792, 900 The attorney gen
eral estimated that S3,5O0,O0O had beer
sunk in the Florida Everglades lanC
scheme, in which most Of the investor:
bought water instead of earth for Their
cash outlays.
More than 100000 persons have beer
victimized by bucket-shop operators il
New York city alone i'm the last year
according TO an estimate by District
Attorney Banton. The victims range
from the poor and uninitiated TO the
moderately wealthy and well informed
who probably would not have Jared a.
badly as they did had not the stool
market been so favorable TO operation.
of the bucketeers.
Reputable Brokers in Arms.
Officials of the New York Stock ex
change and the Consolidated eXchang,
are cooperating in the efforts TO ''clem
up Wall street" Reputable broker
welcomed the inquiry as a means o
Kidding the financial district of long
standing evil.
Scores of bucketeers are under ar
rest, released on heavy bail, or have
left for parts unknown Many firms
after going through bankruptcy anC
then opening Offices again, are clOsin;
up rapidly. Books and documents o
many of the bankrupt firms have beer
seized, showing the fieecing has beer
widespread.
Many of those who have relate,
their experiences ID the uSllI4cI dllOf
ney's office are persons of small mean
who could i'll afford To lose their say
ings. Some of the manipulators mas
querading as bona-tide broAera.,
houses. used POnzi methods. accord
ing 10 the Investigators
A favorite scheme, il was said. wa
10 lull the unsuSpecting investor into
state of security by paying him casl
dividends for time The bucket-Shol
operator would explain 10 the investo
when he bought bonds that coupon
were not issued because this would in
volve unnecessary bookkeeping. Afte
receiving dividends for a month or tw,
the investor would seek out his ''brok
er," only 10 learn that he had disap
! peared. leaving behind some fine ofiic
!. furniture but no forwarding address.
Many Women FIeeeed.