Evening star., 1926-04-25
S1,Ol)O,ODO IN 1925
/ FRAJD TOLL HERE
Better Business Bureau Sur.
/ vey Shows Both Men and
Women Were Cheated.

Approximately $1,000. 900. or s. for
every citizen of the District Of
Columbia. was lost in unsound invest
ment during the past year, It Is esti-
mated by the Better Business Bureau.
While this figure is large. the bureau
estimates thai quick action ana
prompt investigation prevented losses
that would have reached $4,000, ,00o.
According to an analysis Just com
nleted by the bureau under the direc-
ton of Louis Rothschild, director
nearly so projects of A questionable
character were prevented or stopped
from operating in the District, The
plans Of those directing these project
called for absorbing from the invest
irE public amounts ranging from
S. 600 to 5000 00n If all the plans
cf these organizations had reached a
-uccessful conclusion, It Is estimated
by the bureau that the loss per capita
10 the citizens of the District would
have been SO per person instead
cf =.
Many Schemes Nipped.
While il is impossible to estimate
the exact figures. these compilations
were taken from the written and
ohjectives Of the organizations. who
we're prevented from carrying through
their ideas.
In one case the bureau reports a
scheme which called for the sale of
fl5o.000 in bonds in a company prac-
tically bankrupt; was wrecked before
T. got in operation. All sorts Of
schemes. from the sale of submerged
or other questionable Florida lots 10
bogus stock frauds. were either pre-.
vented or halted through the bureau.
the survey says.
Approximately 200 persons have
availed themselves of the services of
the bureau since the instigation Of the
Before You Invest Investigate cam
paign. a good proportion of the in
quiries were in regard TO relatively
highly speculative and questionable
investments. These projects ranged
from swimming pools that never ma
terialiZed to perpetual motion ma
chimes.
The bureau states that If the losses
had been distributed over the great
mass of the population the harm done
would not be so bad. but on the contrary
the losses for the most part have oC-
Cured to people who are little able
to afford them. 1t is estimated that
thousands of dollars of these losses
have come from small savings aC-
seem. according to the bureau. to in
vest in f1imsy schemes quicker than
any other class of people.
Business Men Lost.
However, there has been consider
able money lost. says the survey, by
business men who are supposed to
have a knowledge of investments. In
one instance man came TO NashlnS-
ton and in comparatively short time
collected $4,000 from local business
men Old women and old men have
also proved an easy field for the
tricky schemester
According to the bureau. nearly
100000 has been lost during the past
year in speculative rental promo
tions. The age-old free-lot scheme.
says the bureau. has taken its share
of money during the past year de
spite the warnings NJ the bureau, the
Washington Read Estate Board and
the press.
L. S. Clerks Cheated.
The bureau complains that one Of
the unfair and unfortunate means Of
selling questionable securities is the
employment by promoters Of innocent
Government clerks who wish TO do
extra work. Some Of the Govern
ment clerk statesmen have themselves
invested in the securities that they
are selling and have lost money. The
chief clerks of the various depart
ments. according TO Mr.. Rothschild.
have helped to limit this activity.
Mining schemes. unproven inventions.
commercial airships. land promotions,
motion-picture schemes and scores of
other projects have been held out for
those not versed in the WAYS of ques
tionable promoters. The bureau rec
commends the motto Before You In
vest Investigate" a. a means of mini
mizing further losses during the com
ing year.