The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-06-22
WARNS AGAINST
!. TRADE FAKES
BY RICHARD HATTON


Thousands of Washington people
are annually fleeced by fake stock
promoters and others who present
seemingly sure-thing investments.
Other thousands of Washington
people are saved from these in.
Nestment sharks by the Better
Business Bureau and the talk de-
+, Hvered by Director Louis Roth.
eehild, Of the Washington Better
Business Bureau at the annual
convention Of the District of CO.
1umbia Bankers Association con.
tains many statements which will
we'll bear repeating in the interest
of safe and sane investment.
Mr.. Rothschild declared: 'gThe
support of the Better Business Blu
reau is not philanthrophy however.
The Before You Invest-Investi-
gate campaign is an educational
one that diverts the Inexperienced
investors money from the ques-
tionable and the fraudulent to the
legitimate investment.
THE hundreds Of thousands of
dollars a year lost by Washing
tonians through fraud and near
fraud, does not benefit the city.
The same money soundly in
vested adds not only to the happi-
ness of the investors but protects
and increases our business pros
perity.
I'VE have before us a rather clear
illustration. For the past six
months the questionable promoters
with whom I have come in contact
have complained of the spare pick
ings. As one oil promoter said that
he was forced to compliment the
Bureau, it had put him out Of bust
ness.
For over a year and a half there
has been no spectacular question.
able promotion scheme in Washing
ton. OF course there are numerous
schemes being worked at this very
day, but they are all comparatively
small and operating in quiet way,
without advertising, thanks to the
cooperation of WashinGton's news
papers.
Contrast this with the success
that has greeted the investment Of
ferings that bear investigation. The
over-subscriptions of the public util.
1ty issues is a clear indication that
the people of Washington are today
more leary of the Spectator and are
recognizing the legitimate.
what has the Bureau actually
accomplished? During the two and
q half years of it's activity in the
financial work the Bureau has IN
swered more than 1000 specific in
quiries from members of the public
as a result of its invitation to I'm
Vestigate First"
Through radio talks, contributed
newspaper advertising, news pub
hcity. addresses and other mediums
1t has reached hundreds of thou
sands. These messages have been
specific and educational, they have
pointed out what good investment
is and how to recognize that which
merely poses as good investment.
Recently the bureau was pri-
marily responsible for the nipping
in the bud of a building and loan
association deal.
"In this proposition, 100000 men,
berships were to be sold at SIS each.
OF this IS, over 81 was to go to
the promotion or a possible promo
ton cost of over 100000. The en-
tire scheme, according to building
and loan experts, was fundamentally
unsound.
Telephone stock brokers' working
what is known in underworld jar
gon as "boilerhouses" have been
one of the big problems of the
bureau.
These men usually are operating
bucket shops and their entire plan
is to solicit business by telephone.
1T is gratifying to report that
within the last few months one of
these operators left town, thanks
partially to our activities; there is
a warrant out for another, although
his whereabouts are unknown. and
bureau warnings have greatly cur
tailed the success OF others operat-
ing today"
Mr.. Rothschild concluded: "It is
too true that there is lone born
every minute" However. substan-
tiaL and tangible progress has been
made with the result that hundreds
Of thousands of dollars have been
saved. That money, it is reason
able to expect, has found its way
into legitimate investment that has
benefited not only the investor but
also the business life of our city"
Homes to meet the requirements of
every class of home seeker are listed
in GlassificatiOns 81 and 81. classified