Evening star., 1925-10-24
LOST DOLLARS ABIILLoN a YEAR
NI-What to Ask
BY VI. b. LEI iCk.

t'inanc crimes cost America more
than crimes Of violence. You expect
crime from a burglar or f"otpad.
but the basis of commercial fraud IS
violation of trust and confidence
That is the way il is summed M
by H. J. kenner of The Better RuSi-
ness Bureau of New York.
The individual investor can do on"
thing for his own good, withhold con
fidence till he Is sure il is Worthily
placed But how can he find that
out?
He can withhold credence "f even
the highest authority: stock selling
scheme on the Pacific coast. inter
fered with recently, offered coo per
cent dividends on the statement that
God has commit eG great and eN-
ceeding rich gold quartz ledge 10 the
company IN which clergyman was
active God. said the prospectus, gave
the surest guara ntee. More pertinent
ly. syppers have been found to use
letters signed with such names "a j
F. MorGan's-forged- the indorse
| ments OF big banks. forged also. Ar
oil gang cleaned mp 2J00.e00 not long
| ago on the supposed Endorsement ot
| f., L. Doheny. who promptly made
| denial when the project came 10 light
Looks Convincing.
| The gypper may have silt edge in
/ dorsements in his sales kit. but that
| doesn't show where or how he Sot
| them He may have what look like
reputable financial papers, prsiSins
| his project: the manufacture Of such
papers. initiating real periodicals and
often printing withiut authority ad
vertisements of nationally known
I ir,c q
| industry. The company whose STOCK
| is offered may be highly praised in q
| news bulletin mailed by some invest
ment reporting service: there are
| honest and unbiased services of this
| sort and there are others whose let
| ters of advice are known as dope
| sheets Or the salesman may show
! an imposing letterhead: there was
| one firm which had BILE address
and branches in II cities. but it's head
went To prison the other day with
| s 10-year term.
| Ink. then. may mean nothing What
! OF talk? Does the salesman tell YOU
| Of the $500 In gas-ma ntle stock tha
made 100000? The 800 in type
setting machine that made S127 900
| in seven years. But even II his propo
| sition is A good invention. what does
! that tell of his companN's facilities
! it's financial soundnese. its knowledge
| Of manufacture and marketing? I,
doesn't even show whether the com
| pany is getting S. net out Of every
| 800 the sales force raises.
| The Usual Approach.
| Does a voice on the phone call You
q favored customer? Does 1t tell of q
purchaser waiting for your stock-it
you'll just buy little more TO add
| to it and make a block? Does it urge
buying more before the price goes
up? That last Is known as raising
| the issue-setting the egg to go in
| deeper. Does II mention happy
error by which too much was bought
| in your name-all to he paid. for be
| fore you get the profit, under the
| exchange rules? Or ask for quick
| check. promising the profits check
| will cross 1t in the mail? But a these
are only hints. Everything may be
! all right, hut 1t may not.
A New York dealer in radio secnri
| ties offered new shares for old. One
man out West who sent them. having
received no new ones. asked the New
York Better Business Bureau about
| 1T. He foun6Aout what was what ir