The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-11

This is the first of n number Of ar.
ticIes that THE NEW YORK HERALD
win publish showing the prevalence OF
radio stock swindling concerns and also
the methods which they employ.
1t is almost an invariable rule that
in whatever direction popular interest
is headed, particularly with regard to
money, there follows in it's wake a
sinister gentleman who halts wherever
he can gain an ear, rolls up his sleeves
and produces his shells and peas.
Thus, whenever stock market prices
get abroad about fortunes amassed
over night the bucket shop proprietor
blossoms forth most abundantly with
his dazzling promises of showing the
hard working public how to get rich
without resorting to sweat of the
brow. That lasts until the market
| breaks and the bankruptcy court and
district attorney step in.
Oil Schemes Worked to Limit.
In recent years. as thousands of sad
der, but probably no wiser. men can tell,
favorite Of these camp followers of
fortune has been oil. On the strength of
the fact that a few persons have been
lucky enough to hit a gusher, enough
phoney oil company stock has been sold
to plaster this country from one end to
the other and probably buy out the
Standard Oil Company.
In the light of this usual sequence of
affairs. the announcement that the con
man of to-day is rallying the dollars to
the magic call Of radio should not be
surprising. But whether surprising or
not, an examination of complaints with
the District Attorney. the postal inspec-
tors. the Better Business Bureau Of New
York and similar investigatory bodies
shows that radio stock swindles are now
being undertaken on a scale rivaling the
performances of the palmy days of the
oil stock purveyors.
Not only is that the state of affairs
but there is indisputable evidence that
some of those slick gentlemen who were
responsible for some of the biggest oil
swindles now apparently have deserted
oil and are turning their attention to the
promotion of stock of fake radio COM
panies.
There is no way of estimating the
amount of money that already has been
taken from the public by sale Of worth
less radio stock. but that the sum Is con-
siderable is indicated by the number of
complaints from persons who have been
stung.
Complaints Filed with Banton.
Half a dozen complaints were filed in
the District Attorneys Office last week.
Several different radio stock promoting
concerns have been called to the atten-
ton of District Attorney Banton's as
sistants.
The postal inspectors have at least six
different companies under scrutiny to de-
termine whether they are apprehendable
through using the mails as means OF
laying hands upon the money of the
gullibe
The activities of some of those COM
panies are expected to receive the at
tention OF Federal Grand Jury within
a short time.
The Better Business Bureau is in
vestigating the methods of at least
eleven different companies.
One concern announced it's intention
last week to quit selling stock. That
concern Is the International Radio Cor
poration. OF which Elmer T. Weight is
president. Mr.. Weight stated also that
the interests Of one stakeholder, whose
criminal libel complaint against the bu-
reau was recently dismissed In Mag
istrate's court, would be relinquished to
the company. This company. according
to Weight. had already taken In $780,
600 and had an additional 100000
worth of stock Sold but for which the
money had not been collected.
There has been no concerted drive.
collectively or individually. by any Of
these agencies to ferret out radio stock
swindlers. but the foregoing evidence OF
the operations of stock sellers Is merely
the outcropping of the general situation,
and probably is indicative of much ac-
tivity of this sort that has not yet come
to light.
Radios and Real Stocks Mixed.
One alleged bucket shop whose affairs
are under the scrutiny OF the District
Attorney is known to have sold radio
stock In connection with its general
business in regular listed stocks. but
usually the swindle follows the gem
eral lines OF the familiar oil stock swim
dies. That is. the stock is sold by
promoter rather than through a stock
broker, and the bait OF prospective large
returns through a small initial ground
1OOr investment is used.
The full force of all the old time con-
fidence and ballyhoo devices Is being
employed in the new field.
Large STATS OF schooled statesmen are
used. not only to call personally on
prospective purchasers but the old trick
OF taking the telephone book and going
right down the list. calling 'cold tur-
key Chat is. tackling an absolute
stranger who never before heard either
Of tho salesman or his stock), every
number listed being used.
One complaint received I'm the Dis
trict Attorneys office was from man
who admitted that he had bought stock
over the telephone from man whom
he had never met and that he had no
idea how the salesman had obtained his
name.
A flood Of alluring statistics, history
and argument, attractively printed upon
expensive paper. is pouring In upon
virtually every person whose name the
promoters can obtain. Sucker lists are
being worked hard, and those sucker
lists have been considerably enlarged by
reason OF the fact that some OF the pro-
noting companies appear to have OBJ
tanned access to the stakeholder lists OF
some OF the large reputable radio APP
paratui manufacturing companies and
also to the names OF many amateur
radio fms
The radio stock swindlc scheme. In
fact. goes one better than the oil stock
or almost any other stock swindle game