The Connecticut labor news., 1923-08-25
Stopping Fraudulent
 Securities in N. Y.

New York, Aug 25.-That much can be done to prevent the sale of fraudulent securities and bring their vendors to, the bar of justice, with the competent legal weapons now available to the prosecutors in New York State, IS shown in report just. |issued by the Better Business Bureau of this city The bureau was created
 a year ago to discourage fraudulent and deceptive methods in business,
 and to promote honesty, truthfulness
 and reliability in the sale of secur- ities and merchandise. In its report,
 entitled Practical Performance" it shows what has been accomplished in
 May, June and July and what has been done under the Martin Act-a fraudulent securities statute of New York state-considered dead letter
 until invoked by Attorney General kCarl Sherman with the backing of the bureau Other states can, 1t is be- lieved, accomplish equal results with similar statutes. provided enforce mef1t IS sincere and dilIgent.
 Within the 90 days ending July 20 last, the attorney general, on lnforma- ton submitted by the Better Service | Bureau, enjoined one corporation from selling $Ioo,ooo in bonds after l 1t had taken hundreds of thousands | from the public through stock sales but had current assets amounting to i less than $25, 5,ooo; obtained restrain l ing order against a large brokerage house charged with bucketing orders; put a quick stop to another concern !fiourishing through fraudulent prac- tices, and forced corporation pro- noting Mexican and New Mexican %t, f,.~ o1a ,F it's securities until 1t had included it's liabilities with it's assets in it's public
 statements. Other equally important cases will shortly be submitted to the courts by the attorney general of the state.
 The report shows that the bureau
 has made public many bulletins re-
 porting it's investigations which have
 curtailed the activities of business
 concerns about to overstep the law;
 has aided the stock exchanges in way to bring disciplinary action against certain members, or the with drawal of their ticker service, and has co-operated with the postoffice in spectors service in actions against swindlers who were using the mails for fraudulent purposes.
 The bureaus activities extend far DSy Ouu llS puililIVS phases. LIS OD- jects are to prevent fraud and to this end it has widely distributed much informative literature, sent its speak CTS to talk before business organiza- tions and clubs and in other ways has spread it's message, Before You In vet, Investigate"
 In speaking of the recent work of the bureau, H. J. Kenner, it's presi- dent, said today that what has been achieved in New York may be as readily accomplished elsewhere.
 What is needed" said MT. Ken ner, 'is a conscientious and inte1li- gent enforcement of the laws now on the statute books, which in the main are strong enough to correct existing evils. There is, however, other inn portant work to be done This is in forming the public as to the basic principles governing sound invest ments. You cannot cut off all frau dulent securities at their source, but persistent and intelligent campaign of education can cut off much of the supply of money now being handed to the vendors of spurious securities by uninformed citizens"