Evening star., 1926-12-07
MEN AND MONEY
BY NJ. S. Rukeyser.
Copyright. 1926.l

George Graham Rice, who has twice
served prison sentences, is a colorful
Wall Street figure.
| Because Of his widespread stock-sell-
ing activities and simultaneous at
tempt as editor of the Wall Street
Iconoclast to fill the role of financial
prophet and advisor to the multitudes,
he has recently come increasingly into
the focus of public attention.
In it's current quarterly report the
| Better Business Bureau of New York
City devotes considerable space to Mr..
Rice and his legal encounters.
That the Better Business Bureau
has not been a neutral is indicated by
it's candid statement: 1.-THE Better
| Business Bureaus of New York City
and of Boston have been of tangible
service to both Federal and State
authorities in their Investigations of
Rice's practices and these organiza-
tions, with the National Better Busi.
ness Bureau, stand ready to render
any further assistance possible"
Meantime, outsiders need not worry
that Mr.. Rice's interests will not be
duly safeguarded, because, it is under
stood, the broker is represented by
four of the most eminent attorneys
in New York.
Discontinue Quotations.
Following the recent subsurface
criticism of the nature of some of the
securities dealt in and some of the
methods of trading on the Boston
Curb, principal newspapers in New
York and Boston have seen fit to dis
continue publication Of quotations of
that market place.
The Pennsylvania Bureau of Sc
curities, which precipitated the
trouble of G. L. Miller & Co.,
bankrupt first mortgage real estate
house, by suspending its right to sell
securities in that commonwealth in
July, has just prepared, under the
direction of Walter j. tallows, set
of standards for banking firms en-
gagged in the underwriting of loans
on real estate. Mr.. Fallows, the
deputy secretary of banking in
charge Of the bureau, has attempted
to embody in the new code the
criticism which has recently been
widely made of some of the practices
in this field. Unless they change
some of the details Of their plan of
operation, several of the large and
important distributors may fail to
qualify to sell bonds in the State
of Pennsylvania.
Va SOuloC, safety III CdIiiOl
be written into a formula. The in
tegrity and capacity of the under
writing banker constitute the invis-
ible ingredient in good issues.
Explains States Position.
Recognizing this, Mr.. Fallows, aft
err revealing the new set of stand
ards, says:
The foregoing requirements are
not to be construed to mean that
merely because an issue of first
| mortgage real estate bonds does
comply with the above that it will
be permitted to be sold in Pennsyl-
vania. The definite details in con-
| nection with each issue, such as
actual cost of land and building, to-
gether with bases for appraisals, will
be thoroughly investigated in the fu-
ture and be considered in connection
with the general plan of business of
the dealer who proposes offering the
bonds for SALE
Mr.. Fallows' expert views should
e of interest to investors in other
States, who are cropping for means
If separating the wheat from the
haff in this field.
The new Pennsylvania standards, to
which all vendors must conform
''Ollow:
81. The trustee shall not be directly
r indirectly connected with either
the borrower of the house or firm sell
ing the bonds. Preferably the trustee
should be q trust company In or near
the city in which the property secur-
ing the mortgage is located.
"2. The bonds are to be delivered
directly to the trustee and held until
the trustee receives payment for them.
The effect to be that the trustee will
have either the bonds or cash.
49, The proceeds from the sale of
the bonds are to be held by the trustee
and paid out directly upon the proper
certification.
"a. 1t must be provided that all
other financing be done and all the