The Washington times., 1928-10-17
NEED j. s. AID IN
CURLING FAKE
PROMOTERS
BY HARRY GUSACK
Financial Editor

udnNtul 1HuAAUt
Millions of dollars would be saved
annually from fraudulent stock opera
Tors il the Federal Government would
spend 100000 each year for addi-
uonal postofice inspectors and other
personnel in the department to ade-
ouately care for existing needs, ac-
cording to Henry r. Hayes, of New
York. in his presidential address at
the annual Convention of the Invest
ment Bankers Association of Amer
lea yesterday. in Atlantic City.
Need L. S. Help
He declared an Immediate need
existed for Federal assistance in
curbing fake stock promoters and
preventing traffic in fraudulent Sc
curities. He urged more complete en-
forcement of existing statutes rather
than further legislation of the So
called blue sky type. In conclusion,
Mr.. Hayes said:
The Postmaster General has
power to issue stop orders forbidding
delivery of mail or payment of
money orders to anyone found by
him to be using the mails for fraudu-
lent schemes, but at present original
prosecutions rather than stop fraud
OEocFS are Sought DScduSc u ldCh VI
time and personnel to make required
Investigations. Consequently, it Is
believed that a larger staff could,
under the existing law, expedite
either preventative action through
action through criminal prosecution,
a. the public interest demands.
Quick Action Urged
I'VE desire to get quick action to
the end that If any security sales
schemes are fraudulent, they may be
stopped before large public losses
have occurred. Such a plan Is cap
able of much variation and would be
improved by experience.
I'VE hold that the expenditure
each year of $500, 900 by the Federal
Government would annually prevent
the swindling of millions of hard
earned savings. since savings
largely come by dint of hard work
and thrift. the people of this coun-
try are entitled to better protection
than they are now receiving. This
il especially so when we consider
that the annual loss through the
traffic in fraudulent and worthless
securities runs well into the hun
dreds Of millions of dollars. -
Enlarge Bulletin
Steps looking TO the enlargement
Of the Monthly Bulletin of the Dis
trict of Columbia Bankers Associa-
ton, both from the standpoint of
circulation and space devoted to
news, will be taken up by the pub
Lefty committee of the association,
at a meeting called by its chairman.
George o. Vass, for tomorrow at as
sociattcn headquarters. According
TO letters sent out to COMMITTEES
members by Chairman Vass, the
group viii consider the following
recommendations. which were in
cluded in the report of last years
committee:
THAT the circulation of the
Monthly Bulletin be enlarged so
that copies may reach every active
official and director OF member
banks.
THAT more prominent outside
cover be adopted TO improve the
appearance OF the bulletin.
THAT an individual be appointed
by each band. with whom members
oi the committee NAV he in fire.
uuent touch, so that news of gen
eraI interest concerning activities Of
accurately obtained and checked.
Employment Better
The industrial employment sit
uaticn in the United States during
September Is regarded by the De-
partment of Labor as generally
satisfactory" with every indication
that the weIl-sustained volume of
employment would prevail through
out October, according to the month
~ Industrial bulletin of the depart
ment made public today.
Several of the major industries
employed additional workers during
the month, while many of the auto
mobile factories and plants manu-
featuring automobile accessories
operated on overtime schedules with
greatly increased forces and in
several localities with a shortage of
skilled factory labor
An encouraging feature of The
month. the bulletin stated. WAS the
Improvement in the textile industry
which, for the first time in many
months. reported an increase in
operations and employment, how
ever, there was still large surplus
Of this class Of help at the close CT
the month.
An indication that the employ
1nent IL gradually getting on
more sound basis is seen in the fact
that the railroad shops and freight
operating departments have both
had to increase their forces due 10
the car loadings showing a rather
steady increase.
Another promising view NAV be
had of the situation by the fact
that the harvesting of the cotton
crop has started. which will mean
employment to a large number of
workers for several weeks. Uar
vesting of the sugar beet cron
which started the latter mart of
September In some districts. will
engage thousands of laborerS well
into November.
Satisfactory building nrosrano
we're reported in many cities and
i1 most localities the resident build.
ing tradesmen were well ennpIoved
THE metal working establishments
with very few exceptions. operated
on high production schedules. and
a shortage Of skilled machinists,
such as tool and dienakers. was
reported in several localities.
IIRFRTY PnNne