The Washington herald., 1922-11-29
ONE SINGLE COMPANY
SURVIVES CAMPAIGN
AGAINST STOCK POOLS
Better Business Bureau Pre-
diets Clean Sheet With
Next Week or So.
BY CHAS. p. SHAEFFED


paten AGAINST fraudulent stock pro-
moters and stock pools in the Dis
trict of Columbia, started and carried
on by thA Better Business Bureau in
conjunction with the grand jury and
washington newspapers, that at the
present time there Ia but one like
concern still operating in the city.
according to q statement last night
by r. K. Wholley, director OF the
Better Business Bureau here. Sur
vival Of this one lone concern for q
period Of more than q week or so is
considered extremely doubtful, due to
the tremendous pressure being
brought to bear upon it by dis
gruntled clients.
The blind pool in question is
located high up in a prominent office
building on F street. It was organic
ed and conducted by a woman whose
name the company bears. Like all
others, its solicitations are confined
almost entirely to Government work
ers who seem more susceptible to
''get-rich-quick" tales than the aver
age run. While officials of The COM
pany In question assert the firm does
not speculate, they admit. however,
they engage in buying and selling
securities traded In on the New York
Stock Exchange" which amounts to
practically the same.
BUSINESS METHODS.
The company operates upon the
following lines. Any amount rang
an ordinary but CAREFUL wordetl
receipt being returned for the money.
This receipt embodies the terms Of
contract between the firm and
customer. which provides. among
other things. that sole use Of the
money shall rest exclusively with
the firm. Holders of receipts are
not stockholders of the company and
have no voting power. II the COM
pany's operations are successful so
per cent Of the profits are disbursed
to clients, the remaining 40 per cent
representing the company's rake-off.
The receipt also states that any
client can withdraw money ''in-
vested" upon thirty days written
notice, provided this notice Is given
on the first day of the calendar
month. II It is given on any other
day the thirty days notice shall not
begin to run until the first day of
the following month.
BREACHES OF CONTRACT.
Several instances of a breach of
contract are complained of by the
unfortunates who comprise the
firms clientele. One investor" il
IL said, has been denied the privi-
lege Of examining the company's
books, as provided for in the con-
tract. his money having been
returned with the curt invitation
to leave the company's premises
Several have duly notified the firm
Of their desire to withdraw money
invested" it Is stated, and while
these notices came within the
required period, still no money has
been returned.
According to reliable information
reaching The Washington Herald,
approximately $4,000 has been
given to the venture The COM
pany, in turn, has paid first a
monthly dividend of about II per
cent. dropping to IL per cent the
following month, then to 10 per
cent on the following two months.
and lastly a dividend of Az Per
cent was disbursed. This last divi-
dend, it was said by a company
clerk. was not earned but paid out
Of money paid in.
The woman organizer. in ques-
ton, does not rely on her own judg-
ment in selecting the issues to be
dealt in. but has acquired an "ex-
pert" for this purpose. Clients of
the concern, recognizing the scar
city of stock market experts, are
wondering how such a g,nius could
afford to become affiliated with
such q small concern.