Evening star., 1924-10-21
PLANS DRIVE HERE
TO AID INVESTORS
Better Business Bureau to
Fight Fraudulent Securi-
ties in D. c.
BY CHAs. r. sHAEFFER.

r IT.
Howard NJ. Cool, director OF tn.
Washington Better Business Bureau
| today announced plans for tn.
greatest educational campaign com
batting fraudulent securities vet al
| tempted in the District of Columbia
| 1t Will get under way sbout Noven1
per j, according 10 present indics-
tions.
The campaign will be elementary in
character. planned thusly In the be
nef that the major portion of those
VINO invest in worthless stocks have
only vague knowledge of what
merits a security should have TO
prove attractive.
The Government departments will be
concentrated upon in the coming cam
/ paign, and it is planned to Insert in each
pay envelope, on every pay day, a terse
piece OF advice relative to the art OF
investing money, stressing the impor-
lance OF obtaining essential information
on the salable issue before the money
actually changes hands Department
stores will be asked to cooperate in
conveying this advice to employees, and
effort will Dt made TO include every class
Of worker in the District
1t is believed that by tHe constant use
or these maxims. easily remembered. tho
| spirit OF caution, usually lacking In
worthless security transa ction, will he
| gradually inculcated in those who year
ly lose many thousands of dollars.
Bureau Gives Real Service.
The Better Business Bureau Of
Washington has rendered invaluable
service to Washington under the ad-
ministration of Mr. Cool Within the
last week letters have been received
by II advising of money saved due t.
the timely warning issued against the
/ nf or
| sales, at profit of approximately
$l40 per share to the promoter. This
! is only one instance. However, Mr.
Cool declares there is still much TO b.
| done. 1t Is his contention that T.
! prove many concerns guilty of fraud
| IT is necessary to observe their func-
tions over period of time. This ac-
complished. the authorities take quick
action, but in the meantime NAM
people have lost much money. 1t is to
prevent this initial loss that the pend
| ing campaign was conceived
/ Mr.. Cool Will be assisted in his
/ undertaking by a committee consist
! ing of w. W. Spaid. w. J. Waller
ana II. il. Rust. jr.; the former, ~
able representative of reputable
and powerful brokerage concern. will
! explain in concise language the in
gradients Of legitimate security
| Offering. while Mr.. Waller will OUT
! line the part the banker should plan
in aiding the investor to preserN.
/ his earnings. To Nj. Rust is allotted
the task of giving advice relative
to the purchase of real estate paper
| Bankers and business men OF th.
| city are solidly back of the under
| taking and express renewed determine
| tion to minimize the evil.
Pennsy Gets Bond Rights.
| The Pennsylvania Railroad Com
! pany today received authority from
the Interstate Commerce Commission
| to issue S50,o00.000 of 45-year . per
cent security gold bonds, to be sold
! at not less than e5ia per cent of par
| and to pledge as part of the collat-
eral security for the bonds, capita
| stock of certain of the Pennsylvania
| companies
| The Illinois Central received au-
| thority to issue s14,256.0o0 of com
! mon capital stock of 500 par value.
| SO much of the stock as shall equal
| 10 per cent of the Illinois Centrars
! outstanding common stock on Octo-
I Der 22. 1924, to be sold at not less
| than par
The Star, in reporting gains of saw
! ings banks yesterday, inadvertently
omitted the Security Savings & Com
mercial as one of the first three in
its class. This institution showed a
gain of s161,034.29 over the previous
| call, dated June 90 last
New Director Elected.
! DR.. L. Hoyt Lamb, druggist. has
been added to the directorate of the
| Washington Mechanics Savings Bank
! at a recent meeting of the board
! At the same time, Thomas J. Groom.
i teller at the main Office was pro
NOTED TO assistant cashier, and A. s
Offutt, assistant cashier, was trans
ferred TO the East Capitol street
branch.
Trading on Local Board.
| Sales of $50 shares of National
| Mortgage and Investment preferred
at 9. with the exception of the close
| sale of so shares at 9ls, featured to-
days trading on the Washington
Stock Exchange.
| Favorite issues were dull. Ten
! shares of Railway preferred sold II
80. and 25 shares of Capital Traction
| brought 92S. Lanston sold at 80.
| Bonds were dull and featureleEs.
Financial Crimes Increase.
/ Financial crimes have increased
alarmingly since 1918" says E. A. 81
John, president of the National Surety
Company of New York.
| Losses paid by a group of surety
/ and burglary insurance companies I'm
1918 totaled s3,32s,7ss. These same
companies in 1923 paid losses OF
| $20.912,706 and will pay as much, or
more, in 1924. Our own share in
! 1923 was s7,e17, ,o51-the largest OF
any single company. In 35 years We
| have paid in losses s40,000,0o0. II
the crime wave Is to be checked, EN-
ployers. public prosecutors and mag
istrates must join in a campaign for
relentless prosecution of the criminal
and severer prison sentences.
| Financial and commercial institu-
tions must increase protection OF
messengers and funds, must be more
| careful in selecting new employees,
must watch even old and trusted en-
| ployes and install better systems OF
accounts and checking.
"Citizens and public officials must
| insist upon honesty courses in the
public schools.
Magistrates must increase respect
for the law by imposing more severe
sentences.
Surety companies must seek to
punish more severely the unfaithiu
bonded man-they should do, as this
company has done-make the pun
ishment fit the crime"