Evening star., 1925-06-10
War on Crooks Waged.


Col. Donovan told the credit men
throughout the country will welcome
your assistance" in disclosing com
mercial fraud.
In the prosecution Of alleged crooks,
Col. Donovan commended the credit
men for their record, and proceeded
to explain on what principles the De-
partment Of Justice operated against
this class of suspects.
THE Bureau of Investigation" said
Col. Donovan, lis not a detective bu-
reau, but it is a bureau made up OF
educated, trained and skilled men. who,
think most Of you agree, have been
of the greatest assistance in bringing,
during the last year or so, some of the
big commercial crooks Of the country
to justice. The bureau Is successful
because in the preparation Of case
they see the day of ultimate trial by
a jury and they know that suspicion
Is not enough, and that certain rules
Of proof must be followed"
Commercial fraud is particularly
hard to trace said Col. Donovan" q"
The prosecuting forces OF the Govern.
ment are not large enough or suf-
fciently equipped to properly deal
of frauds arising out of business trans
actions. 1t must go for assistance to
you men who have an intimate and
detailed knowledge of business
The drive against credit crooks, Col
Donovan said, should not only be
aimed at catching the guilty and pros
ecuting them, but at prevention. More
stringent demand that all merchants
keep accurate books Of account and
be prepared to submit financial state.
ments was recommended by the
that financial statements have a di-
rect bearing upon concealment of as
sets and other commercial fraud pros
ecution. Every Federal Reserve Bank
requires from its member banks finan-
ciai statements to cover commercial
paper offered for rediscount."
Deplores Pull" Charges.
Col. Donovan criticized those credit
men who mistake suspicion for evi.
dence. and then. when failing to prove
their cases, cry out against the prose
cutting officials, insinuating political
influence" Charity should be exer-
cised, however, the speaker said, in
cases of men who had taken their
punishment for commercial fraud, re.
lating the story of a man who asked
to be taken back to Jail because Il
haven't got chance in this COM
munity."
The sanction of business ethics, Col
Donovan said, ais more effective than
the policeman's club"
Lewis E. Pierson of New York City
praised the Federal reserve system.
and laid down what he called the
debit and credit side of the balance
sheet for the system, claiming that
advantage was on the credit side. He
went into detail explaining sugges.
tions for improvement of the system
advanced from several circles, but
declared they concerned details and
not the fundamental plan.
Senator Carter Glass of Virginia,
speaking to the Robert Morris Asso-
ciates yesterday afternoon reiterated
Mellon tax reduction plan, saying he
was for "outmelloning Mellon and
criticized the McFadden banking bill.
The Senator also made critical COM
ment on action of the American Bank
ers' Association in indorsing the AL
drich bill in 1912" without knowing
what it was doing, a system, which, he
said, would have been the ruination
Of this country" Senator Glass also
scored the American Bankers Asso-
citation for opposing the Federal re-
serve system.
Arson Loss s160,00O,00O.
When the American Bankers AS
sociation tells me that l ought to do
thus and so, l would better pause
and consider whether 1 ought to or
not" said the Senator.
T. Alfred Fleming, supervisor Of
conservation, National Board of Fire
Underwriters of New oYrk, said the
American consumer had to pay $780,
100000 annually that was paid out