Evening star., 1923-08-19

interest to transfer agents, banks.
brokers and Investment dealers by
which small investors have been
cheated out of their security hold
ings has made its advent in New
Bureau of that place is broadca sting
a warning to all parts of the country.
BY this scheme. the prospect Is
solicited to purchase an unknown So
curity upon representation that 1t
will be listed on one of the stock
exchanges on a specified future date
and that the opening price will be
much higher than the price at which
the salesman offers it.
The salesman ascertains by care
full inquiry that the prospective in
vestor owns some standard stocks
or bonds, whereupon he indicates that
no cash will lie required to com
plete the transaction If the owner
will put up his seasoned securities
as collateral. Assurance is gwen
that after the alleged listing takes
place the investors collateral Will
be returned to him with handsome
profit from his new stock sold at the
advanced price. The safety Of the
securities to be used as collateral
is vouched for by the salesman, who
emphasizes the fact that the client
is not asked to indOrSe them. and
hence they cannot be negotiated.
Securities Taken as "CoIlateraI.''
The investors good securities are
thus taken as "collateraf without
Endorsement by the salesman and he
places them in large blank en-
velope and seals ii in the presence
of the purchaser. The salesman re-
quests the investor to Sign his name
in the lower rlght-haud corner of
tho envelope. with the explanation
that 1t is merely for identification
purposes"
After leaving the purchaser. it is
stated, the salesman Sits the en-
velope along the top and sides. con-
paper bearing the signature of the
owner of the securities. Later
power of attorney" in legal form
is typewriter above the signature.
making it appear an authentic legal
instrument. to which is added notarial
acknowledgement. The securities are
sold and the transfer of the certifi-
Gates is effected without the knowl-
edge of the rightful owner and with
out arousing suspicion when passing
through Legitimate hands.
In the opinion of the bureaus coun-
sci the material alteration in this
instance entirely nullifies the power
of attorney" and the defrauded Sc
curity owner can enforce his right OF
recovery through an action at law.
BANKERS TO Resume Forum Dinners.
The forum dinners Of the local
chapter. American Institute of Bank
ing. VIII again be a feature of the
associations activities the coming
year. President James 4. Dulin, jr..
announced last night.
These forums. in the past. have
taken on the form OF a monthly get
nf he ir,sF 49,
hcers. ex-officialS. etc, numbering
not more than forty. where all mat
ters pertinent to the chapter were
discussed. During the coming year
credits course" TO be inaugurated
oy Mr.. Dulin. plans for which are
only tentative at this time.
W. a. Dexter. past president of the
chapter. is chairman of the forum
committee. and now is planning his
arran gements.
Record of Business FniIIngs.
Business failures in the United
States still show substantial reduc-
tion from those of year ago. a total
of 312 reported to r. G. Dun & Co.
this week comparing with one of 4l5
IN the earlier period. Except in the
east. where the number is the same
III each case. fewer default occurred
TINS week than year ago in all geo
graphical sections. the most marked
reductions being in the south and
west;
OF the past weeks failures 14S had
an Indebtedness of 5000 or more in
each instance. which is equivalent to
41.f per cent of the aggregate num-
her In this week OF last year. when
there were 235 similar defaults. the
ratio was $50 per cent
Failures in Canada during the week,
numbering fifty. show a decrease
from the total Of sixty-four reported
a year ago. There were twenty de-
faults last week with liza bilitfes of
$4,000 or more in each case. against
thirty-one last year.
In enlisted" Department.
The following latest bid and
asked prices for securities on the
unlisted department of the Washing
ton Stock Exchange are printed here
with for the guidance of holders Of
these issues:
Bonds.