Evening star., 1925-02-25
DISTRICT ENDORSES
DRIVE ON FRAUD
Bankers Ready to Join in
Campaign-LocaI Stock
Reaches New Peak.
BY CHAs. p. sHAEFFER.

Recent appointment of committee
to draw up plans for a powerful ma
tfonal fraud fighting organization is
being followed closely by District
financiers, who await only until the
movement assumes some defniteness
before injecting themselves heartily
into its support
The movement had its inception IN
Chicago yesterday when representa-
tives of financial and commercial or
ganizations of the New York Stock
Exchange, public officials of Illinois
and the city of Chicago, blue sky
commissioners of many States, and
others interested, met to formulate a
national organization to combat
sWindlers and to protect innocent in
vestors. Speakers called attention to
the fact that the menace is beyond
the powers OF the law enforcing off,
cials of the States to eliminate un-
aided, stressing that cooperation of
all business bodies and all good citi-
zens is necessary.
The plan just started was inspired
by the success of the New York stock
Exchanges nationwide drive against
securities frauds, through its mem
bers, branch Office heads and CORE
spondents in every State, set up by
central bureau for the receipt OF
complaints and the analysis of cases
coming under its investigation
Local need for such a movement is
not as pressing now as several years
ago, thanks to the vigilance of the
Better Business Bureau, the District
Bankers Association and other bodies
but its benefits to the investing pub
lie, financial and business houses, are
readily recognized. Washington in
Vestors are learning that only securi-
| ties in honest, capable enterprises are
worth considering, which has resulted
| In fraudulent operators likewise con-
! centrating on offerings of high-grade,
Well-known stocks on special pay
| ment Li9ns.
They declare that they buy the
/ stocks and hold them for the customer
| while he is paying for them. Usually
they do not buy the stocks, but keep
and use the customers payments
while they work to gain his confidence
and then to switch him to some
worthless or near worthless stock at
| a high price and which they hold in
| abundance. This illustration en-
bodies the major proportion of the
| local bureaus complaints at the
| present.
Redmond Gets Bond Issue.
| A syndicate headed by Redmond &
| Co, was the successful bidder for
| $7,000,00O City of Philadelphia 4 per
! per cent 30-year bonds. Its bid for
the entire issue was 100.797. The
| bonds are being offered for public
subscription to yield about 3.95 per
| cent
Bankers on Winter Tours.
L. z. Breuninger, president of the
| Citizens Savings Bank, with Mrs
| Breuninger, is spending several
! weeks in Florida, while William d
| West, vice president of the same
institution, with Mrs. West, is win
tering in Cuba.
Railway Common at New Top.
Continuing it's upward movement Of
several months, the Washington
Stock Exchange again today recorded
another new high level when %
shares of Railway common sold up
ward to Ola.
Heavy selling, covering a wide
range, prevailed. Merchants Bank
and Trust Co sold at its highest fig
ure, 136, with so shares changing
hands, while LanSton Montype stock
was active to the entent of 80 shares,
selling upward to 1873, the year 5
highest level. Capital Traction was
easy at 9215, while Gas, firm at 5S
at the opening of the market, eased
off fraetionally at the close. Rail
way preferred brought S0s, and Ma
tional Metropolitan Bank stock was
traded in at odd lots at 292
Bond trading was confined TO
utility issues at firm but unchanged
prices.