Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-25
FRAUDULENT STOCK
SALES FEWER HERE.
Better Business Bureaus
Report on PubIic's Coop
GRAFTON Reassuring.

hunting ground" OF the fraudulent
promoter that 1t once was described
to be. Louis Rothschild. director of
In his annual report to the board of
trustees Of the bureau, at its annual
meeting at noon today at the City
Club.
Nearly three years ago. when the
financial department Of the bureau
was instituted. the INSCRIPTIONS
salesman OF worthless securities found
little or no opposition here" Mr..
Rothschild said. HE found a public
unwarned and uneducated in the
fundamental principles OF investment
and he reaped a consequent harvest.
Today they find a cautious public. A
sales resistance has been built up
against the high pressure vendor of
blue sky"
Four words, the slogan OF the
Better Business Bureau. have brought
about that change, Mr.. Rothschild
| said: Before You Invest-1nvesti.
gate"
Many Inquiries Answered.
total of 2.477 financial inquiries
| have been received by the bureau
since the establishment of the finan-
cial department, and OF these. 1879
were answered. Inquiries made to the
bureau have jumped nearly 100 per
cent over last year, and bankers and
investment brokers report similar in
creases in the number Of questions
about the character of investments,
the report shows.
I'm no cases." Mr.. Rothschild said,
"do we attempt to approve or disap-
prove unless there is an apparent at
Tempt at fraud. Our policy has been
10 catalogue the security as an in
yeStment, a business venture, specu-
latiNn, a gamble or fraud
Jnethical Or fraudulent promoters
have been greatly reduced here, but
Washington Is not entirely free or
them, the director warned. A city
free of financial parasites he said,
Is Utopia never to be expected.
A new danger to Washington In
vestors has arisen, he declared, as a
result of the bombardment OF some
real estate operators Of questionable
character and practice from Florida.
These former Florida artists" Mr.
Rothschild said, ARE opening up real
estate promotions, selling cheap
acreage in lot forms along the Mis-
sissippi River, around Cape Cod, in
western North Carolina and In sec
tons Of Maryland and Virginia near
to Washington.
However, only a small percentage
of Florida operators could be classed
as fraudulent, he said.
Larger Program Planned.
Mr.. Rothschild announced that an
expanded program OF protectlon 1or
customers and business men alike Is
| MANNED for the coming year. Mem
! bership enlargement is planned that
will increase the working capital OF
the bureau to $4,000, he said.
The bureau starts the new year
| with a clean slate financially, the
report shows. and with sufficient rev.
enueS in view to meet all expenses
| of the present program.
Mercantile advertising in Washing
! ton Is on n higher plane than hereto
! fore, is comparatively free from In
| accuracies, Is not jaopard!Zed by ques.
| tionable sales and has a new note of
conservatism that undoubtedly has
strengthened public respect and conf
dence," the director reported. This
situation is due primarily to the fact
that the vast majority Of advertisers
appropriate, morally and financially,
the value Of truth in advertising. The
activities Of the Better Business Blu
reau in the past year have been edu-
| cational as well as protective and the
cooperation has been gratifying"
| The report commends Washington
merchants for cooperating in promot-
ing truth in advertising. Furniture
dealers especially were praised for
Joining III the movement to advertise
the various woods Of which pieces of
furniture actually were made.
Better "Sales" Reported.
The practice of merchants quoting
comparative prices is being reduced
and little abuse is noted now. Wash.
ington also is comparatively free of
spectacular sales listed as "going out
Of business" fire." bankruptcy" and
auction" the trustees were told.
A board Of 35 trustees, nominated
by a committee headed by George B.
Osternayer, was elected.
| Five new members were chosen:
! Thomas w. Brahany, e. H. Lowe, l.
Meyer Herbert Shannon and Nor
man Kali, who automatically becomes
a trustee by virtue Of being president
of the Advertising Club.
| OJneTS IldiIieu "cLo' ". !Auui-
son, jr.; Edward c. Baltz, Isaac
Behrend, B. B. Burgunder, Joshua
| Evans, jr.; A. c. Father, William G..
Gilliher, M. G. Gibbs, M. Goldenberg,
I. L. Goldheim, Harry. w. Hahn, H.
| G. Hoskinson. ]. H. Johnson. jr.;
| Bernard M. Kaufman, Sylvan King,
Stanley Lansburgh. M. A. Leese, John
D. Leonard, H. H. Levi. Louis Levay.
r.. B. H. Lyon, Howard Moran.
| George B. Ostermayer, Herbert J.
Rich, l.. e. Rubel, II. L. Rust, w. w.
Spaid, Anton Stephen. g. w. Strauss
and W. J. Waller.