Newark leader. ([Newark, Ohio]) 1917-1946, 1922-03-17
FARMERS LOSE
MANY MILLIONS
Sum Equivalent to Money For
Years Corn and Wheat Crop
Goes into Bad Stocks.
SPECULATION PROVES COSTLY

Homes In State-Steps Are Taken
to Stop PiIfering of Publicity
Man Also Loses as Well as Country
Neighbor.
Columbus, o. - (Special) - Wheat
and corn money of Ohio farmers from
last years crops, estimated by Off
! cials in the state department of agri-
! culture to approximate $72,000,00O,
will just about pay the losses sus-
tanned by Ohio farmers last year in
worthless investments, according to
compilations just made The corn
crop as estimated by the state depart
ment of agriculture Appropriated
160,000,000 bushels and was worth
about $64,000,000, while the state
wheat crop of 28,000,000 bushels was
sold for approximately $2S,OOO,OOO.
but the fruits of this great fortune
practically were lost when sum of
money equivalent to the corn and
wheat crop receipts was "weened"
from farmers by horde of willy
statesmen, who staged the greatest
petrated in Ohio.
Protection Offered.
The city man also was duped, but
the farmer felt his losses more be-
cause his revenue was curtailed to
greater extent through drop in the
price of agricultural products. AL
though somewhat late, steps are be-
ing taken to protect the investor to
a greater extent than the protection
offered by the state blue sky depart
ment Ohio's blue sky law probably
has hindered the swindlers many
times, but it has not stopped their
work In a number of Ohio cities
commissions are being organized to
combat the sales programs of those
who sell worthless stocks Protec-
ton now also is being offered the
farmer by the Ohio Farm Bureau
Federation, which has established an
excellent department for Investigate
ing investment schemes. But perhaps
the best facilities for investment in
vestigation is offered by the building,
loan and savings institutions in Ohlo.
There are more than 700 such institu-
tions in the state, with representation
practically in every county. Because
of easy accessibility they form an
ideal agency for the dissemination of
news regarding stock selling schemes
Should Seek Safety.
Many thousands of dollars were
saved Ohio farmers by these institu
tions last year Of the thousands of
dollars placed on deposit with them
not a single dollar was lost Quite a
contrast to the experience of those
who invested their savings in worth
less securities. On the other hand
building and loan institutions rem
dered first aid to $4,000 farmers, with
loans of approximately $5O,O00000.
'"The farmer will make money in
the long run by being content with
fair rate of interest and securing
absolute protection for his principal
according to James A. Devine, secre-
tary of the Ohio Building Association
League.
Devine declared that too many peo-
pie did not think of their local finan-
cial institutions until they wanted to
borrow money. He suggested that
farmers keep their savings in their
local financial institutions, especially
such institutions that catered to
home financing, so that when they
needed money their needs could be
filed. "If the farmer as we'll as the
city man will do this for year, at
the end of that time financial condi
tions will be very much better"
That much of the financial distress
among Ohio farmers is due to squan-
dering of savings piled up during the
war in worthless investments is De-
vines contention He said that Ohio
farmers have been victims for the
last two years Of systematic cam
paign of extortion which has almost
wiped out their reserve funds
Many Are victimized.
There are millions of dollars
worth of bad stocks tucked away in
the 100000 rural homes in Ohio" ac-
cording to Devine, who stated that
funds are still being withdrawn from
savings istitutions for the purpose Of
speculation" Dev:ne said that recent
disclosures of financial swindles in
New York and Chicago were tame"
as compared to the orgy that has
been staged in Ohio. He declared
that much of the stock that is being
sold in Ohio is not worth the price
of the paper on which the stock is
printed Stock selling concerns go
into a community, select someone Of
standing in the community as their
sales representative and this 'indi-
vidual then proceeds to victimize his
friends and relatives In many cases
the salesman believes the stock he is
selling is good, having been victim
lied himself"
Financiers all over the state are