The Washington herald., 1922-08-18
FINANCIAL.
..DECREET POOL"
OPERATIONS HERE
,sELOCAL CHARGE
Investors Being Fleeced
J. IN New Scheme, Sc
curity Broker Warns.

50 That a relatively large number
OF discretionary pools are being
2 fteiated In this city by out-of-town
Interests, obtaining considerable
sums of money from innocent in
,tvestors on the promise Of substan-
! stsL quick dividends on money
placed in the venture. is the ailega-
tIon contained in a letter to this
column yesterday by q local WELL
known security broker.
- The workings of the plan in IT.
self Is simple enough. The scheme
revolves around a number of Eek
perienced stock market profession
ais. on the inside who pool the
contributions of small investors for
the purpose of playing the mar
ket." II the venture is successful.
contributors TO the idea are paid a
= cash dividend of sometimes up to
Sd per cent of the POOLS winnings.
manipulators of the pool pocketing
ssunsuccessful, the investor Is again
= Ted on with the assurance they
z cant lose this time" or similar
bunk. II Is only natural that once
an inexperienced investor. or specu-
-iator derives a handsome return he
win continue to "play the game"
!. until the inevitable crash comes.
- Earnings of the pool manipu-
-1ators are never subjected to loss
2 via this ruse. which enables the
schemers to retire with consider
able profit once the final crash
comes.
yFhese pools operating locally are
said to be operated by entirely in
experienced persons. and the branch
Offices of outside pools are sppar-
emily unable to supply information
of a character to inspire confidence.
Despite this fact. 1t is said the sew
eral establishments In washington
are collecting large sums of money.
even exceeding the amounts collect
ed by any of the stock selling
schemes which have been put out OF
). business.
fae Local Securities.
- Dealings in local securities on the
Washington Stock Exchange yes
-terday was restricted almost entire
z to public utilities. Capital Trac-
tion IS sold to the extent of $4,000
at 9sIk upward to 9s%. while a like
.pgmber of Railway As held firm at
75. Potomac Electric consol SIS sold
at s5I.
In the stock list Railway pre-
p Serred sold at as. Lanston at 81, and
so. shares of Columbia Title Insur-
abee sold at "a.
-. Bond. Held for Circulation.
Securities held in trust by the
Treasurer of the United States for
national banks to secure circula-
tfon have increased every month
stncesthe first of the year. Total on
August / was s735.1s0,6so, which
compares with s72S,523.240 on jan
uazy 1. an increase of $6.637. $50. On
august 1, 1921. total was s723,596.-
= 100, the increase since then being
81 .564. 500.
On the other hand, there has been
a Steady decrease in the amount of
securities held to secure Federal
Reserve Bank notes. Total on Au-
gust 1, 1922. was sS0.51s.700, as COM
pzred with s224.105.20O on August
I. 1921. a decrease OF s143.5s6,5 500
and comparing with S11S,000. 900 on
January 1, 1922. a decrease of s37.-
4ffs300. Reduction in securities
held for Federal Reserve banks
vas due to the Treasury redeeming
the sPittman act certificates, which
wFre issued to secure Federal Re-
save Bank notes in small denomi-
nations to replace silver certificates
retired during war to release silver
dollars which were melted and bull
lion sold to Great Britain for shiJ =
Rent to India.