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Show 5? I STOCK PBDfWDTERS. ? f SMnHDLEBS FLOURISH U U New York Flooded With Op- f I orators from 38 States Who - Evade Blue Sky Law H- ' 4i XE" Y0RK- Jan- 15. Stock pro- ml' motors and swindlers -who have been i driven from 3S states where "blur &,-. sky" laws exist arc flourishing in New ' 1 ' York as never before, according to Ed- 1 -7' ! win P. Kilroe, assistant district ttor- t - nCJ' in cnarfr? of lhe investigation of jf : 'i commercial frauds. .5 ll Mr. Kilroe charges that most of the operators are composed of "confidence j t men, ex-convicts, racetrack touts. ' wl! pamblers and men of the baser sort" ' iJg, vvho, as soon as their crooked work is-! ' f&&y 3 made public, move to another part of j , a8s$ ?I the metropolis and resume business tRd ;1 under another name. J jffit jL Investing Public Unprotected. , I jraEff "It is remarkable," says he, "that in 1 Jsttil ",'s state wn'cn s tue financial cen- 'aaSKi . ter 01 me worm, Law uivesuui; pupiic jr ' should be left without protection and j tS& ; f tor should reign here." tifiaSe .Minuting the majority report of flraff I i Governor Smith's blue sky lav." com-. com-. ' mission as "a prayer to allow the prcd- ;' atory Wall street interests to continue ' Iheir pillage without let or hindrance," K- .Mr. Kilroe in a report to "District At- torney Swann, opposes the recommen-K recommen-K i dm Ion to turn the prosecution of crooked Wall street concerns over to E ! ' four deputies and the attorney goner-it goner-it a 1 of the state. 2 ' . "The recommendation," he says, "that nothing be done by tho present jj ; legislature except the appointment of a commission to redraft the penal law r is inexpedient and would accomplish I no good result. All of the facts a com-; com-; mission so appointed could possibly ' obtain arc now in the possession of the district attorney of New York as the result of some -1000 or G000 com-; . plaints investigated in his office." V Methods of Stock Swindlers. hk The methods employed by stcok swindlers to fleece the unwary are ex-: 1 1 plained by Mr. Kilroe. "In tho old j davs," he said, '"sucker lists' were! prepared and used by those unscrupu- j .'i lous promoters. On these lists were I the names of those known to be sua- j , f roptible to the illusionary offers madOj b salesmen of worthless securities, i This list has 'now ben cast aside and !. today even' pood citizen who happens. ; to be inexperienced in the world or finance fi-nance is a possible victim, provided he has a small bank account or govern-! ment bonds. ! . "Schools are established to make ' : the smooth-tongued salesman more ) 'smooth' and hooks of instruction are i prepared so that no one even with small savings shall escape their lure i i This office is flooded with complaints of the shorn and plucked who daily : stream from Wall street to the crimi-j i nal courts building. The victims, in ' many cases, have lost their life sav-j , ings. the widow's mite, the Liberty bond, bought in a spirit of patriotism by a weekly deduction from the toiler's toil-er's wage. The savings bank book and the card of war savings stamps j alike have found lodgment iu the swln- j dler's net. ! "The lure of speculation has. ot : course, produced a corresponding vol I nine of attendant crime, corruption and dishonesty. The increase in thr I number and amount of Liberty bon: thefts during the past seven or eighl months is n matter of great concern Jin the financial district and In the administration ad-ministration of the criminal law." j Mr. Kilroe advocates as a remedy for existing conditions (1) the government govern-ment licensing and control of stock exchanges; (2) similar licensing for j 'stock, bond and other investment se-1 jcurity dealers; (3) driving of tho New i York curb market from the street "as ja public nuisance;" U) compulsory ;and complete public record of all se-'curity se-'curity sales and purchasos within 21 (hours; (3) similar record of collat-eral collat-eral deposited by investors, the : amount of broker's lien and names and addresses of person or firm with whom collateral Is rehypothecated; i(6) complete public Information con- corning financial condition, plans, etc.. (of concerns before they may offer stock for sale (7) a federal "blue sky" law which would prevent swindlers in I other slates from doing business by i mail, telegraph or other interstate i moans with prospective victims in New York. oo j |