The New York herald., 1922-02-20
Both Tell of Hosts of Vic
tins Of Bucket Shops Who
Pocket Losses.
WORKING TO GET REMEDY
Consolidated Brokers Meet to
Help Purify Stream Of FL
nance at Source.

Remedial legislation, proper en-
forcement of existing laws and the
education of the public are what is
required to remedy the bucket shop
evil, according to statements made
Yesterday, which indicate that agita-
ton for the bettering of conditions
and the elimination of the bucket
shop evil as it has been exposed by
THE New YORK HERALD already has
gained headway.
Statements were made yesterday
by District Attorney Joab H. Banton
and Edward S. Brogan. former AS
sistant District Attorney in charge of
the Bureau of Commercial Frauds.
At the same time it was learned that
a group of reputable brokers con-
nected with the Consolidated Stock
Exchange had held the first of a
series of meetings for the purpose
of studying the question, cooperating
with the exchange. which has al
ready begun house cleaning proc
ess, and suggesting means for end
ing stock frauds and the fleeing Of
the unwary.
Mr.. Banton has had before him all
the evidence in the cases which have
so far called for criminal action, and
he has heard innumerable stories Of
sharp practice wherein the bunco
men were so clever that criminal ac-
tion was not possible.
Few Victims Complain.
The study Of these complaints and
his investigation of conditions in this
city have led Mr.. Banton to certain
conclusions regarding which he said:
81 do no. believe that 10 per cent. OF
those who have been fleeced have
made complaints to the office Of the
District Attorney. 1t is not an un-
common thing for a person to come
10 the District Attorney and on learn
ing that publicity may attach to the
complaint leave TIE office without
making complaint preferring to bear
his loss rather than to let it be known
that he had been fleeced. The Dis
trict Attorney also receives large
number OF letters and kilograms which
are never followed by personal calls
and which indicate that the writer's
prefer to bear tl-eir loss rather than
to be known as having engaged either
in investment in wildcat securities,
speculation or gambling with bucket
shops.
ut has also impressed itself upon
my mind that those who have either
invested or gambled are persons who
are not financially able to undertake
such hazard. These sharks prey
upon the predominant characteristics
of human nature--one is the inclina-
ton to gamble and the other is the
desire to get rich quick. The average
salesman for these concerns Is little
short Of "A confidence man and TIE
average security that is sold on solicit
tation is of as much value as a gold
brick.
"For a long time 7 have thought the
supervision of the exchanges over the
operations of the financial district would
prove ample protection to the people
and that no other supervision would be
required. have reached different
conclusion as a result of recent condl-
tions. reflected in this Office.
Victims Need Protection.
TN ordinary commercial life 1t Is
much better TO leave the matter OF
credits to the merchant and safeguard
II only by criminal statutes against
fraud and false representations. But
the persons who have been the victims
OF the larcenies, bucket shop transac-
tions and other occurrences reflected in
the complaints now pending in this Office
are not engaged in regular business, are
not accustomed TO determining credits
and are not in a position to protect
themsclvcs
Because the great mass of people
who deposit in banks and insure either
their lives or property are not qualified
10 pass on the stability of the institution
with which they deal the State has seen
ft TO put banks and The insurers under
State supervision. and in SO far as fire.
quent inspection ana supervision can
insure TO the people the honesty and
financial stability Of these institutions,
the state through this supervision secs
to u that the banks and insurance COM
panies are safe.
ut would seem to me that there should
be immediate legislation providing for
blue sky law as TO all the securities
offered for sale in this State and pro-
viding for the registration and licensing
Of all persons and concerns who deal in
securities. either as brokers. under
writer's or in any other capacity. and
Continued on Page Seven.
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