Evening star., 1924-10-12
CULLIBLE STOCK BUYER
is WARNED BY MELLON
Education in Ways of Swindlers Best
Means of Protecting Public, Treas
'ry Secretary Believes.

N LEEDING the gullible investor
- Of his hard-earned money
through frauds and fax
IL stocl, swindles-a business
which is estimated by some
students OF the situation to have in
creased within the past few years
can be best combatted by consistent
and continuing campaign of educa-
tion among the people. in the opinion
of Secretary of the Trea sury Mellon
The Post Office Department, through
issuance of fraud ORDERS" has put
a permanent prohibition on the .op-
Grafton Of hundreds of brilliant and
profitable" schemes. State blue sky
laws. better business bureaus, busi-
ness organizations of many kinds.
bankers campaigns and other move
ments Of community and State wide
scope have been driving against this
evil with increasing zeal.
But the crooks continue to drag in
their prize booty. And there is still
crying need for further sound and
practical advice, more adequate and
more drastic measures 70 rescue the
life savings" Of the poor man and
the widows mite"
Hit Small Investors Hard.
Secretary Mellon believes it is
among those people who can least
afford to lose that the grafters
of America work most successfully
their nefarious schemes. It is upon
these innocent victims, who have
worked the hardest for their money
and striven with the most sacrifice
to save it that the greatest burden Of
such grating falls with such crush
ing weight.
The fickering Eleam of easy
money" like the enticing will o. the
wisp' that it is, continues to drag
many a man or woman, who other
wise may have good. hard common
sense. into the quagmire of gilt
edged" paper, and scintillating prom
ises of huge rewards, which vanish
"a lost hope-with all the cash.
Mr.. Mellon believes there is no ac-
curate way Of estimating how much
money is lost each year in America
through the sale of bogus securities,
or the exchange Of Liberty bonds for
such worthless paper.
Education Chief Remedy.
While believeing that good comes
from every move against the grating
profession, Secretary Mellon is con-
vinced that in the long run the safest
and surest way to circumvent their
game is to educate the public ade-
quately as to the relative value of
securities, so that they will be fore
warned, and use intelligent discrim-
ination before purchase.
Persons who have not had sufi-
cient experience to know such values,
Mr.. Mellon advises. should get in
touch with their bankers or financial
houses of high repute. which must
know, in order to buy for themselves.
There the prospective investor will
always be able to find willing and
able advice as to how he can safely
invest his money, without danger.
Mr.. Mellon points out. Such persons
need not be timid about approaching
bankers or financial houses, he says,
for there will be found mon who are
willing and glad to furnish the in
formation sought.
But the unscrupuIous promoter of
fraudulent securities" predicted the
Secretary. like the criminal. will
probably be with us always. The in
centive to get his graft easily is very
strong. And In my opinion, 1t Is
doubtful II we shall ever be able
completely TO eliminate him."
Millions Already Saved.
The Post Office Department has
been doing a highly creditable work
in suppressing fraudulent concerns
which operate through the mails.
The amount of money saved to the
American public is estimated by
Edgar N. Blessing, solicitor of the
department. to run into many millions
how many, he says, it would be impos-
sible to predict.
For instance. since March 1. 1921,
Judge Blessing reports. the depart
ment has issued 851 fraud orders
against copcerns and individuals,