Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-20
CONFERENCE PLANS
FRAUD PREVENTION
IN SECURITY SALES
Second Meeting of National
Body Will Be Held Here
May 1928.
INTERSTATE DEALINGS
CREATE CHIEF PROBLEM
Exchange of Information Among
Various Public Agencies Con-
sidered Vital.
BY EDWARD C. STONE.

bx EDWARD e. STONE.
Plans for the permanent organization
OF the National Conference on Proven
ton of Fraudulent Transactions in
Securities are to be considered at its
second meeting, which will be held at
national chamber headquarters on May
"a and 20. It will be preceded by a
meeting of the National Association OF
Securities Commissioners on May 10,
40 and 81.
The first meeting of the conference,
which was attended by representatives
of various national organizations in
terested in the work, was held last year.
At this time it was decided to set up a
conference Of continuing type and q
committee on organization was deSig-
mated to formulate plans for establish
ing q permanent body.
Executive Committee.
The executive committee of the con-
ference includes:
Henry r. Hayes, Stone g. webster
and Blodgett, Inc, former president In
vestment Bankers Association. New
York City, chairman; r. C. Clark, presi-
dent of the National Association of
Securities Commissioners, commissioner
Of banking and insurance of Vermont;
oscar Wells, president First National
Bank of Birmingham, Ala, director
Chamber of Commerce of the United
States; Eugene E. Thompson, Crane
Paris g. Co., Washington, president
of the Associated Stock Exchanges;
Kenneth Barnard, Detroit, president Of
the Affiliated Better Business Bureaus,
Inc; H. j. Kenner, general manager of
the Better Business Bureau of New
York City, Inc; John Jay O'Connor
manager finance department., Chamber
of Commerce of the United States.
The conference will act as a delibera-
tive body and will not itself undertake
to operate any fraud enforcement
are engaged in studies of some Of the
special problems.
One such problem of immediate i'm
portance now being stndied by the con-
ference is the interstate transaction.
Practically all of the States have laws
to protect their citizens against security
frauds, but these laws cannot reach the
INSCRIPTIONS vendor who makes his
offerings from without the State
through the use Of the mails or by
telephone or telegraph.
Another problem Of immediate con-
Germ that Is receiving study Is that OF
improving the exchange of information
upon specific cases between the various
public and voluntary agencies now en-
gagged in fraud prevention work. An
other committee Is making q study OF
the problem of local law enforcement,
and still another is developing the es-
sentials for good investors protective
work by voluntary agencies.
While other problems connected with
fraudulent securities will require atten-
ton, the work is being limited at the
present time in order to secure prac-
tical results.
Women Lose 100000.
Women of the United States lost
more than $700,000,000 last year
through the purchase of fraudulent
securities, it Is estimated by Howard
T. Reed, vice president Of the Fidelity
Investment Association, who states that
the financial ignorance of the women
Of this country Is so appalling that
some plan should be devised whereby
they would be taught the principles OF
finance.
Bear in mind" says Mr.. Reed, chat
women live longer than men and there
fore eventually they will have the
handling Of our money. And also
either directly or indirectly-and any
married man will testify to this-85
per cent Of our salaries are spent by
women. There is big Job for some
one to 20 out on the highways and
byways of finance and interpret the
fundamental principles of investment
so that women can understand them"
The above estimate appears to be
rather high, in fact much too high,
but the figures have an interesting
bearing on the coming fraud confer
ence. Furthermore, it Is very gen.
orally known that women are not the
only ones who lose vast sums every
year through worthless securities.
Heard in Financial District.
Local bank cleafings during the past
week totaled 28,866,0OO against $29,-
sos, 900 in the previous week. This is
decrease in clearings of 1.3 per cent
from the corresponding week year ago.
A syndicate headed by Merrill, Lynch
g. Co, Kelley, Converse & Co, Inc. and
T.. A. Pierce & Co. will offer shortly
new issue of 100000 Lane Bryant,
Inc, 10-year per cent sinking fund
gold debentures, with common stock
purchase warrants
AL the New York exchanges and
the Washington Exchange will resume
business tomorrow after the three-day
holiday. Wall Street will soon go onto
daylight-saving time.