Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15
COST OF CRIME AND DISEASE
BY FREDERIC J. HAsKIN.

other to be covered by a bond. These
losses are not made up save where, on
prosecution, 1t is possible to md con-
cealed assets.
Straight frauds in general business
are Of q wide variety Of types. Stock
frauds are most numerous in the United
States and entail the largest losses in
terms of money. The total volume Of
blue sky stocks sold to gullible investors
varies from year to year. In prosperous
years, when the people are fully EN-.
ployed and when farm prices are good,
much larger sales are made. The Amer
lean seems to be more susceptible to the
wiles OF glib-tongued stock salesman
than the people Of other nations Prob
ably this Is due to the fact that Ameri-
cans nave more spare money. Another
cause Is the Characteristic desire Of
Americans to get rich quick. Then, too,
Americans are noted for their gambling
spirit, their willingness to take a chance.
Cost of Fraud Appalling.
Whatever the cause, in some years
sales of worthless or nearly worthless
securities reach as high as $500, 000, 600.
OH stocks probably have made up the
bulk Of these securities.
Merchandise frauds Of various types
account for close to $500, 1000, 900. Next
come credit frauds. They amount to
$265, 100000 year, according to returns
from the surety companies. American
dealers in merchandise are notably
quick to grant credit to prospective Gus
toners and, inevitably, fraud creeps in.
A dishonest man viii set himself up IN
business with a stock in trade obtained
wholly on credit. He will make quick
turnover and disappear. Then he VIII
try the trick in some other city.
These types of financial frauds all &C
count for more value than actual rob-
berry, theft and hold-ups. It seems that
the crook who operates by his wits reapS
richer harvest than the one who en-
ploys gun or blackjack. Also, he does
not risk his life so frequently. The
smooth talker who can sell portfolio
Of blue sky oil stock makes better
profit and usually a cleaner getaway
than the Safe-blower.
Insurance frauds are numerous. They
include insurance Of property as well as
Of life. 1t Is especially difficult to beat
life insurance. It Is tried every little
while. A man in need Of funds viii
stage an accident, cleverly faxed, and
then disappear. Arrangements are made
to give the impression that he is dead.
Then beneficiary. working In collision
with him, viii collect his life insurance.
The old fire insurance game Is wen
known to hard pressed merchants whose
stock Is well insured. The fire insur-
ance companies employ detectives to
prove or disprove the genuineness Of
fires, but 1t Is not always possible.
Forgery entails losses to the real own
ers of property amounting to 100000
900 a year, while a similar amount is
charged up to various types Of real
estate frauds.
In the last 20 years there has been a
tenfold increase in the volume Of losses
paid by surety companies. This large
gain is due to the greater amount Of
money in the country and to the in
creasing practice Of taking out surety
protection
The cost Of preventable disease is
not easy to estimate, as opinions may
vary as to what is definitely prevent
able. The Bureau Of Labor Statistics
has, however, estimated that q loss Of
SIC, 900, 000, 600 is sustained by the Incl
dence Of occupational diseases. General
disease costs vary widely from year to
year. Such q catastrophe as an infu-
enza epidemic, for example, will send
the total soaring.
The elimination of at least some Of
these losses constitutes one of the ma
jor tasks Of modern civilization.