Evening star., 1931-06-26
BUSINESS BUREAU {
N|PS FRAUD HERE
RothsChiId Gives Out Report
at Meeting of Trustees
in Press Club.

Economic conditions during the past
fiscal year have led to a notable de-
crease in organized financial frauds,
but at the same time have contributed
to increased demands upon the facili-
ties Of the Better Business Bureau. ac-
cording to the annual report Of the
bureau submitted today by Louis
Rothschild, director. The report was
made public at the annual meeting Of
the board Of trustees of the bureau in
the National Press Club today.
Credit for the practical elimination
financial enterprises is given in a large
measure to the bureaus vigorous edu-
cational campaign, Before You Invest
Investigate. The program, accord-
ing TO the report, has resulted in bring
ing to the bureau during the past year
1885 queries, marking a considerable
increase over the number for the fiscal
year ending June 80, last year. The
total number of such inquiries into
financial activities since the bureau or
gained its campaign has now reached
ii 1853, according to Rothschild's report.
Lauds Business Bureau.
Fleming Newbold. business manager
OF The Evening Star, in a brief address
to the gathering. lauded the Better
Business Bureau for the high practical
value Of its work in the protection of
the public against fraud
Mr.. Newbold pointed out that The
Star always has insisted upon truth in
advertising and said the Better Busi-
ness Bureau had been of tremendous
assistance in this regard.
Y. E. Booker, local investment bank
er, and j. F. Ballenger, formerly of the
local Better Business Bureau organiza-
ton, also addressed the meeting on
phases Of the bureaus activities.
The public distribution of facts re-
garding questionable promotions and
the proper prosecution of the promoters
Of fake securities has been a factor in
stemming the tide of financial frauds,
the report states.
Aids Capital Prosperity.
THE Better Business Bureau has
contributed to the maintenance of pros
perity in Washington by constructively
striving for Truth in Advertising and
Integrity in Business the chartered
purpose Of this organization" the re-
port states.
Public confidence in legitimate busi-
ness, the harmonious relationships be-
tween the consumer and the trade ard
profession, are reasons why Washing
ton has avoided much of the so-called
depression reported from other parts of
the country.
Sound publicity has been the big
stick in the Better Business Bureau"
the report continues. This medium has
been utilized in informing the public
what legitimate firms and businesses
were doing for their protection, and in
warning against and exposing fradu-
lent schemes to take advantage of the
unsuspecting individual
Gives Credit for Assistance.
The report, pointing out that the
bureau is in every sense "co-opera-
tive enterprise" gives special credit to
the aid furnished in furthering its work
by the following: The newspapers,
which have published beneficial news
and refused misleading advertisements:
the radio stations, notably WRC, WdAL
and VOL, which have given time on
the air for the benefit of the house
wife; the District Attorneys once and
the Corporation CounsePs Of1ce, for
services and assistance furnished; the
Police Department, Detective Bureau,
District Commissioners, Federal Trade
Commission, Department Of Justice,
Post once Department and the Bureau
Of Standards, whose cooperation has
been most effective, the report states,
and ''the local business men, who
through their financial and moral sup
port make this protection work possible
also deserve the appreciation OF our
entire community"
The volume of work handled in the
merchandise division of the bureau in
connection with The truth in adyer-
tiSing'' campaign has materially IN
creased during the past year as COM
pared with previous years, according
to the report. The total number OF
cases handled was 5,407, exceeding last
years total by 6S6. The number In
cludes 2,540 shopping Investigations,
1877 consumer complaints and 1,4ea
other investigations.
The year passed without a report OF
So-called bucket shop" activities, ac-
cordtng to Mr.. Rothschild's report.
Last year one of the biggest racketS
reported here was exposed.
The promotion of a million-dollaT
market and garage scheme started by
a promoter of unfavorable record was
"nipped in the bud" through prompt
action by the Better Business Bureau,
the report says, adding:
Stock Frauds Nipped.
Another promotion stopped in its
deception was that which announced
that the enterprise would buy banks.
would operate insurance companies and
would engage in sundry forms of big
business. The stock being offered was
personal stock issued to the promoters
for services, and not one cent had been
paid into the treasury of the corpora
ton.
This was another example where
prominent men had loaned the use
of their names without investigation.
The promotion was stopped and one Of
those primarily responsible for the at
tempt is now a fugitive from justice,
because he was successful in victimizing
one person to the extent of $4,000.
Typical of this type of promotion
worked from time to time in our city
was the wholesale offering in Wash
ington of stock in British television
company, which stock was listed on
the London Stock Exchange and quoted
there at less than rs cents share.
This stock was sold in Washington by
q group of 10 statesmen at from $3.50
=. txaNP an