The daily star-mirror. (Moscow, Idaho) 1911-1939, 1922-03-23
SMOOTH CROOKS J
S. STEAL BILLIONS
Small Investors Robbed OF Saw
hgs by Bunco Men.
GENERAL CLEANUP PLANNED

RInid Probe Being Made Of Bucket
shop Activities by Federal Authori-
tiss-Poor Widows and Orphans
Among the Victims Of Slick Stock
oaIesmen-Many Have Lost Every
Cent of Lies Savings to Ruthless
Money Sharks.
More than $4,000, 100000 has been
Swindled from American investors by
slick stock statesmen during the last
four years, according to officials VINO
are engaged in a nationwide probe OF
bucket-shops and fake stock PROPOSE
lions. Most Of this money, 1t was SAID,
was mulcted from poor widows ana
working men, who entrusted their saw
iuRs of years nto the hands of smooth
oharpers. With federal agents taking
4 hand, and full cooperation promised
by Attorney General Daugherty, a gen
eral cleanup of illegal stock transac-
lions is seen by officials who are push
ing prosecutions against the alleged
brokers.
While New York city leads in the
prosecution of bucket-shop promoters
in the present nationwide cleanup
campaign, there are a total OF 4oo
cases in federal courts, according TO
Attorney General Daugherty, in which
874 persons have been arrested or in
dicted.
Not Confined to Brokers.
Most Of the cases, the attorney gen
eral explained, were fake oil STOCK
companies, although the swindllng
schemes ranged from bucket-shops ana
mining stocks to patent elephant
catcher" promotions. Rich harvests
are reaped by swindlers, he asserted,
because people do not take pains to in
vestigate what they put their money
into.
The Department of Justice, Mr..
Daugherty continued, comes into the
prosecution of such cases through VIC
lation of the postal laws in the use OF
the mails to defraud, but he said that
In his opinion the matter was one for
stat. action. A conference of state
blue-sky law commissioners, he sug-
gested, should draft a uniform law
carrying a uniform punishment for
stock swindlers. He said also he be-
lieved in more stringent laws by the
states and heavier penalties in such
cases.
Missouri Led in Victims.
Quoting from his reports, Mr..
Daugherty said the Northern district
OF Missouri led in the amount involved
In pending fake stock cases., with a
total Of $31, 100000. The attorney en-
eral estimated that So, 100000 had been
sunk in the Florida Everglades land
scheme, in which most of the investors
bought water instead Of earth for their
cash OUTLAWS.
More than 100000 persons have been
victimized by bucket-shop operators in
New York city alone in the last year,
according to an estimate by District
Attorney Banton. The victims range
from the poor and uninitiated to the
moderately wealthy and well informed,
who probably would not have Jared as
badly as they did had not the stock
market been so favorable to operations
Of the bucketeers.
Reputable Brokers in Arms.
Onlcials of the New York Stock ex-
change and the Consolidated exchange
are cooperating in the efforts to "clean
up Wall street" Reputable brokers
welcomed the inquiry as a means OF
Kidding the financial district of a long
standing evil.
Scores Of bucketeers are under ar
rest, released on heavy bail, or have
left for parts unknown. Many firms,
after going through bankruptcy and
then opening Offices again, are closing
up rapidly. Books and documents Of
many Of the bankrupt firms have been
seized, showing the fleeing has been
widespread.
Many of those who have related
their experiences to the district attor-
ney's office are persons of small means
who could III afford to lose their saw
ings, Some Of the manipulators, mas
querading as bona-fde brokerage
houses, used POM methods, accord
ing to the Investigators.
A favorite scheme, it was said, was
to lull the unsuspecting investor into a
state of security by paying him cash
dividends for a time. The btcket-shop
operator would explain to the investor
when he bought bonds that coupons
were not issued because this would in
vOlve unnecessary bookkeeping. After
receiving dividends for a month or two
the investor would seek out his 'brOk-
err" only to learn that he had disap-
peared, leaving behind some fine office
but no forwarding address.
Many Women Fieeced.
Many women are among the victims
Of smooth stock statesmen and bucket
shop scouts" In the majority of
cases, however, the women, while
wanting the sharpers prosecuted, do
want to be drawn into the case as
witnesses because they do not want
their husbands to know that they have
been playing the market"
Many persons who had worked
ceaselessly for years at small wages
lost every cent of their life saw
Ings to the ruthless money sharks.