Evening star., 1922-10-15
BY 1. A. FLEMING.


1.-THE birth rate these days seems to
exceed the Barnum estimate"
These few words. carrying dis
tinct. palpable meaning. are from the
Wall Street Journal.
They will form a text for many a
sermon.
Washington Is q veritable Utopia
for Eentlemanly CD frauds. for the
various combinations Of get rich
quick" promoters who are abroad In
the land seeking the small investor.
who can but Ill AFFORD to lose any
part OF his or her savings.
They are putting across old and
new games. unconcerned a. to pos
sible punitive measures. for there
are no laws on the District statutes
that will get" them.
In his talk before the Board OF
Trade the other evening Eugene =.
Thompson, declared that the my by
night promoter did not have to ny
in the District of Columbia. where We
are without laws to force the crooked
promoter away. but instead they are
firmly established and fourishing as
relief agents upon an unsuspec,lhs'
innocent public"
one Of the leading trust company
presidents was approached the other
day by a man who inquired: -,
What have you to ofer tha1 VIII
net me IA per cent?? The reply was:
Nothing" and the banker added. II
might be well for you to remember,
the greater the rate OF interest the
greater the risk in the investment.
There is another text for sermon
and one that should be remembered
by intending investors-the hlgner
the rate Of interest the greater the
At New York city, the Savings Bank
Section of the A. B. A, passed TINS
resolution:
Resolved, That the public should
be warned for investment purposes
against any class Of contract lnEoiV-
ing the principles of lottery. and IN,
particular against that form mo- OF rH. h,.
estate mortgage contract issued oy
what are popularly known in many
places as and per cent contract
loan companies"
The state securities commission OF
Utah barred companies engaged IN
this line of business. considering the
risk of persons investing In sue"
plans too hazardous.
The national vigilance committee
Of the Associated Advertising CUPS
and the executives Of thirty-eiSht
better business bureaus VIII meet IN
this city october 1920 and Will de-
vote several sessions to this home
loan business.
1t Is a laudable ambition TO own a
home-but when the first three pay
ments and 10 per cent of each adoi-
tional payment are reserved for ex-
penses" it IS going some:
Extent of objectionable Business.
The extent of questionable securi-
ties sold in Washington" said Mr.
Thompson. sis well over 100000
year. and these are very conservative
thought contributions would totai
$250.e0o to the fake. promoter. but
the figures have increased. First we
have $250,000, then 100000. then
100000 and now over $1,0oO.00O.
Where does the money come from
1t comes from those who can not al
ford to lose 1.-THE wage earners.
whose savings are at the mercy Of
the meanest type OF crooks known"
Local investors have been receiv-
ing many propositions from various
promoters recently. They may un-
derstand better just why this new
flood of promotion literature when
they know tha, a list of Washington
investors in securities has just been
issued. made up from the intangible
tax list OF the District.
A New One.
A woman of some wealth received
a nicely engraved certificate the other
day announcing that because she was
interested in the stock of a corpora
tion allied with ours" you have
been given the right to subscribe TO
forty Eight shares of our stock at
s4s. or 81 a share.
But, better than all that. il you did
not desire to exercise this wonderful
right. you could transfer this certifi-
cate with all rights and privileges to
any one you might see fit-not be-
cause of his afiiliation. hut that at
least some one may bite for the $48.
Mr.. Thompson tells of nearby oil
project that guaranteed per cent
divideSd, when an oil we'll should
promise at least 20 per cent.
He also cited a case OF a Florida
citrus grove. sold in the dark for
1000, guaranteed to pay OF the mort
gage on the home of the buyer
mortgaged to pay for the grove-in
two years. when the first fruits, If the
uncared-for trees did not die, would
be coming in four years or there
abouts.
There were more new schemes in
Washington turned loose during the
years 1922 than there are days in
the months of October and November.
Hundreds of our citizens" said Mr..
Thompson. were caught In the blind
pool crashes of a few. weeks ago.
Lured on by promises of monthly div
idends of 80 to 100 per cent on their
Investments, SO called dividends were
paid for nearly year and the public
kept on biting harder until the warn
ings given by the blue sky committee
of Maryland. in cooperation with
Baltimore papers. post once inspect
tempted heavy Withdrawals and then
the smash came.
The so-called dividends paid out
monthly appear to have been nothing
more than Withdrawals from FUNDS
paid in by subscribers. and the divi-
dends as rule were quickly return
One big one busted in Baltimore
Ponzi and his reply coupons"
made him millions. and every expo
sure seems to bring more easy-moneE
seekers into similar games.
Government employees furnish
large percentage Of the victims for
the sucker seekers. and chiefs and
heads of bureaus and departments
should not hesitate to talk to their
peopIe occasionally on the evils OF
irregular investments.
No Sure Easy Money.
There is no sure way to win In
speculation in New York on the great
stock exchange, no way in Chicago
on the board of trade. no way at
Monte Carlo on the gaming table
and there is no way to make more
than legitimate interest on invest
ments in both stocks and bonos.
When considering an investment 1oF
a going return ask your banker.
A Fighting Paper.
The United States Investor. week
ly financial journal. published In Bose