Show 1 RESERVE BANK WARNS PUBLIC OF SECURITIES I Market l Is Flooded With Dubious Dubious Dubious Du Du- bious Stocks Stacks and Bonds Report Says Now New ow York Jan 3 Investors 3 aro are warned against as tho the sinister activity of at promoters and salesmen who are trying to float stocks of or dubious character character char char- acter in tho the December report of or the federal reserve bank for Cor the Second district made mado public hero to today a The Tho amount of ot these securities on sale salo is estimated at hundreds of ot millions Tho The creation of a largo o bod body of ot now capital lists through tho the sale of or Liberty Liberty Liberty Lib Lib- erty bonds has encouraged ed th these se salesmen salesmen salesmen sales sales- men the report adds Based upon In InqUiries Inquiries inquiries In- In made to more moro than fifty banks it appears rs that the questionable stock selling soIling movement is 8 general s in the larger lars cities of ot tho the district particularly particular particular- ly New York 1011 Buffalo Rochester Syracuse Syracuse Syra Syra- cuse Binghamton and UtI Utica J onlo r e Db Rt It appears tho the report continues that some Bomo of ot these theo promoters are men wh whoso so business records do not stand scrutiny either Elther from rom tho the stank stam point of at success or personal Integrity Integrity integrity Integ Integ- rity and some of or them in times past have havo been found guilty s of at crime A possible indication of the extent to which new capital la is sought appears the he report explains In tho the total of at new incorporations Last November now new incorporations In tho the eastern castern states to tot totaled totaled to- to t and In October 2 u-I as compared with In November 1918 The Tho monthly average aver aver- ago age for 1919 was which is nearly seven times the he monthly average aver aver- ago age shown by tho the five tive years cars prior to tho the war Most of ot tho the Incorporations are arc of oC oil shipping and chemical companies I and concerns engaged In the tho manufacturer manufacturer manufacturer of ot articles which bring high prices and lar large e profits Losses LOBBe Irretrievable In many cases tho chances of ot re return return return re- re turn to the Investor Is la limited to tho maintenance of ot tho present price level le Attention is called to tho the fact th that t tho the most recent pr precedents for tho the vast ast growth s of ot vast Industrial enterprises aro are found In tho the United States in 1900 and Just prior to the liquidation of ot 1873 and In Great Britain prior to the liquidation of or 1866 1366 Tho The report declares that certain cases of ot apparently fraudulent intent have been brought to the tho attention of at federal and local prosecutors but In inthe tho the past most prosecutions have havo succeeded suc suc- succeeded only when tho the fraud has Jean beer completed and nd the Investor or has hos lost his mono mane money It is therefore essential the thc report states that individuals buy on only 1 after seeking advice from trusted bankers or others who h aro are equipped with sound Information and good sense In financial financial financial finan finan- cial matters |