The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1923-02-16
FIGHT ON SPURIOUS
STOCKS IS STARTED
Bankers Throughout New Jersey Co
operate to Protect Small Investors
Against Wiles of Fraudulent Stock
Statesmen

The first gun is fired this week in
Hunterdon County by the bankers OF
this county, cooperating with the
New Jersey Bankers Association, in
the statewide campaign against frau
dulent, highly speculative and worth
less securities of all kinds. The "gun'
is in the form of an advertisement in
this paper and in other papers of the
county telling the prospective invest
or how to protect himself against the
wiles of the clever young salesman
who calls around, leaves line of talk
and takes away your money.
At meeting Of the New Jersey
Bankers Association In the Down
Town Club in Newark on January c
Floyd G. Devore of Franklin, who is
chairman of the committee in charge
of the campaign against spurious
stocks, presented his ideas for the
| campaign to President Keisler of the
, state association. His plan. of the
campaign was comprehensive in all
| respects, giving in detailed way al
| that the committee purposes doing tC
put the small investor in a position
to protect himself from the unscru-
pulous promoters of stocks that MOI
only cheat the people of their money
but destroy their faith in enterpri
ses Of all kinds, thus putting a dam
per on the prosperity and progress OF
| the country.
The heading of the committee
warning this week is: Before you in
vest-investigate." That's good adj
vice if there ever was any. We coulC
give many instances, even in our owr
county of Hunterdon, of people who
| took that advice and were immensely
thankful that they had done so; but
,, we could also give innumerable in
stances of people who failed to take
that advice, whether because they did
| not know of it or for some other rea-
| son, who are now very sorry. They
have either lost their money or the
! investment has become so apparent
| ly worthless that they have despair
ed Of ever seeing it again. They either
depended entirely upon their own
| judgment, were influenced by the Gle
yer tongue and perseverance of the
stock salesman or depended upon the
advice of some neighbor or friend
who knew as little or less about the
subject of investments as they them.
selves did.
Here is the advice the bankers are
giving: When you are approached
by salesman desiring to sell you q
stock with which you are not fami-
liar, consult your banker before buy
ing. 1t can cost you nothing; it may
save you much. The best plan is to
have the salesman give you in writing
his statement with reference to the
resources back of the stock and the
plans for its development. Your bank
er will be able to tell in short order
whether or not he is telling the truth.
If the salesman is honest and is sell
ling good security,he will not hesitate
to have you consult your banker. Do
you think man selling United States
Steel, for instance, would hesitate to
have you consult your banker? On the
contrary, that's the first thing he
would suggest. ASK your banker if
this stock isn't all right" he'll say.
Because he knows it is all right and
that your banker can't tell you any
thing else.
The clever promoter of fraudelnt
stocks, however, will demure. He will
run down the banks. He will try to
tell you they are not working for your
interest, but for their own. He will
say they're trying to keep your money
in the banks and therefore will dis
courage you from investing it. But
get this; Youth never see that
stock salesman after he has sold you
the stock that is unless he thinks he
can unload more on you. Long before
the stock blows up he will have
blown too. But your banker has to
live with you the rest of his life,
probably. He has to be your next door
neighbor, your youngsters are going
to school with his, mayhap you at
tend the same church and meet him in
the places of amusement. Hardly
week passes that you do not see him.
Don't you think he wants to retain
your confidence? Well, which of the
two hen do you want to believe?
Associated with Mr.. Devore on the
state committee are Frank Mcmahon
of the Second National Bank of Red
Bank, A. w. Ballentine of the First
National Bank of Montclair, j. Ash
ley Brown of the Peoples Bank &
Trust Co. of Westfeld, c. Edward
Schlick of the Greenfield Banking &
Trust Company of Jersey City, Fred
2. Board of the Citizens National
Bank of Ridgewood and John d. Eve
rift of tho 0rapUa National RopL,