Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-24
Capper to Request Bride to
Prepare Bills for introduce
ton in Senate.
R0VER'S SUGGESTIONS
ENDORSED BY SENATOR
Heavier Stock Fraud and Bucket
Shop Penalties and Gaming
Paddock Law Asked.

to prevent fraud IN connection with the
sale Of securitiec, which were submitted
to Chairman Capper Of the Senate Dis
trict committee by District Attorney
Rover late yesterday, are expected to
occupy an important place on the leg
islative program of the District COM
mittee after the tariff bill has been
disposed Of.
The proposals advanced by Mr.. Rover
may be summarized as follows:
Prompt enactment of the bill which
was pending in the last Congress to
prevent fraudulent practices in the sale
Of securities, with certain amendments
set forth in the district attorneys
letter.
Provision for heavier penalty for
first ofiense of violating the bucket
shop" section in the present District
code.
Gambling Paddock Proposed.
A gambling paddock law to permit the
closing of places involved in gambling
similar to the paddock provisions of the
prohibition law. Heavier penalties also
were proposed.
A law to prevent the sale in the Dis
trict Of any newspaper, magazine or
pamphlet containing racing informa-
ton.
An amendment to the loan shark law.
Commenting on the suggestions Of the
District attorney. Senator Capper said:
The recommendations of District At
n
against bucket shop gambling which is
not q gamble at all, but a sure thing
for the operatorS-have my hearty APP
proval. shall Immediately ask the
corporation counsel, Mr.. Bride. to pre-
pare bills after he has conferred with
the District attorney. and these will be
introduced in the Senate for action at
the earliest possible date.
Favors Heavy Penalties.
"There is no doubt that heavy pen
alties ought to be imposed in the first
instance, instead of waiting for Sec
ond offense to occur, in cases involving
the swindling of investors by bucket
shop operators, fraudulent promoters
and others of that kind.
IT also agree with Mr.. Rover as to
the need for So-called blue-Sky law
to regulate the issuance and sale OF Sc
curities in the District and insure the
honesty and integrity Of the men and
companies engaged in the business OF
selling stocks, bonds, mortgages notes
and like. have already introduced bill
for such regulation, and shall ask the
District Commissioners to make re-
mort on it as soon as practicable so
that hearings may be held and action
taken by the District committee with
out undue delay.
THE suggestion OF Mr.. Rover that
fNS 1Nli
should be padlocked also appeals to me
as reasonable and proper. and l shall
ask Mr.. Rover and Mr.. Bride to pre-
pare bills for early consideration by our
committee. The owners OF properly
should exercise vigilance not TO let
such property become gambling resorts
in the hands of tenants, and the best
way to insure such vigilance Is ny Ins
enactment of paddock law. rms Will
enable the law-enforcement oficials to
close premises that are used for illegal
purposes lust as Is now done under the
prohibition law and red-light statute.
For Reasonable Restriction.
GAS to the suggestions with regard to
gambling in the District, and particu-
lsrly on horse races, am inclined TO
favor any reasonable restriction that
will not prevent the printing OF legltl-
mate news Mr.. Rover's suggestions
will be carefully considered by our COM
r1nittee, and I believe some legislation
can be worked out that will be effective
to stop the operations OF professional
gamblers without interfering with the
legitimate freedom of the press. ON
this phase of law enforcement I shall
also ask Mr.. Bride to work with Mr..
Rover. so specific bills can be introduced
and promptly considered by our COM
mittee.
"The existing condition mentioned by
Mr.. Rover with reference to usury IN
the making of loans, large and small, is
one that can, and no doubt will, be con-
sidered by our subcommittee working
under authorization of the Brookhart
resolution on real estate practices in the
District. It should be possible to Dor
row money at legal rates, either on real
estate, personal property or so-called
character olans,' and the laws against
usury should be strengthened and
strictly enforced. In the case OF char-
acter, or unsecured loans. If 1t is dem
onstrated that the present law does not
allow a sufficient legal rate OF interest.
have no doubt Congress will amend
the law to allow fair return. But the
extortion now practiced on the people
of the District must, and am confident
will be, stopped.
Among the amendments which MT.
Rover SuRReSCeQ 90
curities bin was one that would pro-
vide a maximum penalty OF $4,000
fine or FIVE years, or both. He told
Senator Capper the local courts have
been quite fair in imposing sentences.
never using the maximum sentences eX-
cent where the evidence warrants 1t.
He said he could conceive that in the
case of some violations of this measure
a fine of ,S5, 900 or two years might>not
be sufficient
with regard to section 869B of. the
District Code, known as the "bucket-
shop ace" the district attorney also
recommended penalty Of $4,000 or
Ave years, or both, for the first oftenSe,
instead of the present maximum OF ST.
600 or one year for the first offense.
He further suggested that If a domestic
corporation should be- convicted the
district attorney should have the right
to take steps to dissolve the corporation,
instead of the present provision that
there must be second offense.
With regard to the gambling situ-
alton, Mr.. Rover wrote as follows:
"While the progress that the Police
Department and this office have been
able to make in the past year has been
very gratifying, we having been able to
convict eight persons OF violations OF
our gambling statutes for total sem
tence Of AZ years and 9 months, and, In
one case, besides term OF tmprison-
Ynent, the defendant was ordered to pay
a 11ne az Al 500. there "a still much TO