The Washington times., 1925-06-04
The Need of a Fraud and Blue
Sky Law in Washington
By BILL PRICE.

By BILL PRICE.
Washington il one of the few large cities Of the United
States where stock promotion crooks and financial FRAUDS
generally work their nefarious games without lear OF law
or even of community resentment
The efforts of the District Commissioners and OF Washing
ton banking and investment institutions to have congress
enact legislation the situation here have never been
successful though outlook for action at the next session
of Congress is more encouraging than any time in the past
large number Of cities in the country which can not
prosecute crooks under State municipal laws have ac
compshed good in protecting the pocket DOCKS OF
their people through fearless action the part OF investor
protective committees appointed by chambers OF commerce
Sometimes these committees work in cooperation with Better
Business Bureaus.
Trade organizations are logical bodies to fight crooks
who silently drop into city and clean up thousands OF
doas from workmen stenographers and widows through
fraudulent stock promotions that haven't sound financial
leg TO stand
I been estimated the annual loss from fraudulent
stock and other schemes throughout the United States ranges
fronb 100000 $1OO00Oo0OO Some time ago
Better Business Bureau Of New York said that billion
dollars annually was not too large figure
Th losses fall heaviest upon classes of the people least
ahe 0bear them Keen business and others not
victims Of these crooks The crooks tell their victims that
the rich grew rich lucky investments but don't want
tgys anybody else chance That IS the principal argu
1 Ehey when they into city where chamber OF
cerce trade organization has an protective
committee and calls in the bogus securities promoters TO
ask questions about their business.
Here in washington the Better Business Bureau coperates
sh the committee the local Bankers Association which
seeks to safeguard people against stock and other frauds
but neither these organisations able to do much In
absence Of laws reach the crooks there should be
an investors committee here which will insist full in
formation strangers others who attempt TO market
bogus securities Backed would be, by the
newspapers large organizations Of the city such COM
ittee would be in position to dictate to crooks just what
they should should do The money which these fars
take away from Washington into thousands Of dollars
annually is Just much taken from legitimate investment
and business
At the next session of Congress should press for
prompt prosecution Of the kind Of crooks referred to-
that are administered by security commissioners appointed
bv governors These commissioners become political powers
in their respective States Some of them find convenient
to permit stock that might not measure up to financial
standards These commissioners oppose the enactment Tor
the District of any which does not provide commission
form of operation The Washington bankers much prefer
law like that which protects the people Of Maryland That
law puts hands Of tie Attorney General and States
attorneys all counties the to ndict bogus security
dispensers send them to prison The result is claimed
is that Maryland feer from losses through fake invest
ments than any State in the country
The same kind of law which protects Maryland people
should be enacted for Washington, it is claimed It would
place in the Of the United States Attorney here the
power to nd prosecute all crooks engaged fraudulent
schemes That official would be Judge Of each situation
We want some kind Of law here that will operate sue
cessfully for political influences Congress from
certain States where there security commissions could
have an the District that might result in uniform
methods throughout the country By all let's have
blue sky protective laws Of the best patterns we can get