The New York herald., 1922-11-22
HAS PLAN TO END
FAKE PROMOTIONS
S. i. Cromwell Tells Akron
Rotarians Publicity Would
Halt Schemes.

AKRON. o. Nov. 2t-The passage OF
law requiring full publicity respecting
the issuance OF stocks and bonds and
the issuing companies would go to the
root OF the problem of halting fake Sc
curity promotions. Seymour l.. Crom-
well. president of the New York Stock
Exchange. declared In an address be-
fore the Rotary Club here today.
Require that sworn statements be
filed prior to the issuance of securities
and semi-annually thereafter, and that
the statements give adequate informa-
ton concerning the flotation and the
financial position of the issuing compa-
MES or parties. and also concerning their
operations and earnings" he added: !:
THAT would strike vital blow at the
the jump on It from the start.
Officials Of companies whose securi-
ties are offered for sale would imme-
diately lay themselves open to punish
ment and could be easily reached by the
present laws II they furnished doctored
information to bolster up swindling
promotion. lie: us pin the responsible
ity where It belongs--on the people who
furnish the background for the dealer
in fake securities-and we will soou
make it.jmpossible for such dealers to
operate.
THAT is the kind of legislation the
Stock Exchange will support. Some
thfrc thai &c rIr,rIa dfrarf aaSily apfor-
ceable and that will readily give protec-
tion to the public"
American business firms can do more
to help the rehabilitation OF Europe
than the United States Government can
accomplish, II they go about 1t In the
right way. Mr.. Cromwell continued.
The principal European countries
whose resources have beer dissipated
by the war, Mr.. Cromwell pointed out,
depended for the support of their peo-
pie upon what they manufactured and
exported over and above their own
needs To. continue or rosumc this
process. he said, they require large sup
plies of raw material, but they have no
ready capital with which TO buy this
excess raw material now,
Something practical must be done"
he said, toward furnishing the raw ma
terial which Europe needs or calamity
will overtake tho world. My own opln-
ion is that ou big business institutions
can do more I'm practical way to aid
Europe than our Government can do"
AS an. example of what he had in
mind. ne said that If the great steel
corporations could furnish Europe with
steel on credit up to S10.o00.o 900. with q
liberal extension OF time for payment
wonderful benefit would result.
'"The most natural country In which
to try such an experiment" he con-
tinued, would be Russia. and the type
of goods. OF course, would be those
which foster farming. My idea is that
factories could be taken over, that seed
could he supplied at nominal cost. that
the people OF the district thus indus
trially situated could be employed and
that II the experiment met with success
1t would be contagious and maRy OF
our great corporations would follow suit
and In time we would find many coun-
tries IN Europe receiving aid"
Referring 10 affairs in the United
States, Mr.. Cromwell said that invest
ment bankers could render the coun-
try n great service by cultivating the
confidence of the farmer and helping TO
Solve the problems of land values and
speculation. marketing, transportation
/ and rural credits.