Evening star., 1925-10-23

4 hundred oil stock gyppers took
the big lift" The big lift in crooks
slang is a transatlantic liner. These
hundred went to England and in Il
months cleaned up S5.000.000. The
point is, however, that they went
because America was being made
too hot for them.
The American stock faker TO-DAY, as
never before, faces an organized night.
That makes it easier for the investor
who Is in doubt, or who should be
in doubt, to find out beforehand.
The work of one agency alone. the
Better Business Bureau of New York,
is said TO have saved the public $780,
600 600 in a year with the Co-opera-
ton of county. State and Federal
prosecutors. And the Pennsylvania
State Bureau of Securities In little
over year refused 10 permit the
sale in Pennsylvania of o44 offerings,
almost a third of those for which per-
mission was asked. 1t prevented eff
forts to market, in Pennsylvania,
s4OO 900 900 of questionable or entire
ly worthless securities. out OF appI-
ca tions aggregating $625,00O.oeo-
That brings up again, however.
those whacking big figures which are
hard to grasp. Can they be reduced
TO q scale easier to handle? Trenton,
n. j., is city of $4,000 population.
The gvppers were busy there. So the
Chamber of Commerce hired a de-
tective agency and began q, fight. The
saving to Trenton's public is estimated
at $500 900 a year. That Is 81 per
capita. 1t is about per cent of what
it costs to run the whole City of Tren'
ton for year.
ViSualizing Loss.
,,-f f1ns-
Those 41S typical losers who were
tabulated in the survey previously
mentioned put in altogether, in )
years, $435 900. Such figures help
make the billion loss easier to under
stand.
Those who are leading the fight
saw the situation today is no worse
than it was. That is, 1t is at stand
still, or perhaps has even recedeo
somewhat. But this standstill was
brought about only after the loss
had risen four times over in the
course of 10 years.
According to President Simmons
of the New York Stock Exchange
the problem is one of understanding
education and vigorous enforcement
of the laws. Yet he, like others who
know. admits the difficulties are great
, The average loser is ashamed and
reluctant to talk. The penalt1eS 1oi
the bucketshop thief and the secur
tiles crook are not heavy. in the
main. And conviction Is dihlcult. A
detected swindler may get off with
80 or 60 days.
The chief remedy is publicity.
First Blue Sky Law.
The first blue sky law, that of Kan
sas, dates back to 1911. Since then
about 40 States have adopted blue
sky laws or fraud acts covering the
sale of securities-yet the Syppers
kept on increasing their business:
Opinion on the subject today Is
divided between blue sky laws and
fraud acts. Under the former, which
may have many ardent champions
| the general principle is for the State
to license the security seller before
he starts selling. Critics OF blue
sky laws say the crook too often holds
his company's license as an ace ur
| his sleeve, using it in last resort tc
| induce prospect to buy. See" he
says. the State says the company's
perfectly all right" The State doesn't
| 1t has merely given sanction for sale
| if the goods are a represented, leaving
| the road clear for fraud prosecution
| later if that should be necessary.
| Those who don't like blue sky laws
| except as a substitute for something
| they regard as more effective point
| also to State license departments
where. they say. 9S per cent OF thu