“BUCKET SHOP” EVIL

Waikato Times, Volume 121, Issue 20284, 28 August 1937, Page 20 (Supplement)

“BUCKET SHOP” EVIL

HOW BRITISH PUBLIO IS ROBBED. ■LURE OF “ QUICK PROFITS." Our American friends somewhat cynically tells us that “a sucker Is born every minute.” Whether this Is statistically correct or not we cannot say, writes a correspondent in the Observer, but it Is sufficiently accurate to Inspire the “ bucket shop fraternity in their raids on the purses of the publio. Despite the widespread publicity given to their depredations, these experts In the arts of fraud continue to find their victims, and it is estimated that some £5,000,000 a year is extracted from the publio by these pests. The existence of the evil is recognised in Government circles. A Board of Trade Committee is seeking a means to suppress these frauds, and its report will be available shortly. A General Warning. Meanwhile, It has recommended that a “ general ” warning should be Issued to the publio. This is taking tho form of a short circular which will be distributed through the Post Office, savings associations, banks and other organisations in close touch with the rublic. The moral of the warning circular is that all communications from strangers attempting to advise on investments should he disregarded. There is no doubt that this business of fraudulent share-pushing has been brought to a flno art. Victims are carefully selected. They are cleverly “salted” with small profits. Their confidence is won and the rest is easy. Experts at the business rely on two over-present elements in human nature. One is credulity. As Mr Justice Finlay said when sentencing certain share-pushers to long terms of imprisonment: “These cruel and heartless frauds have been rendered possible by the fact that the public have been willing lo believe the tilings said to them." The other is cupidity. Few people are free from I lie desire to get something for nothing. Many people who would regard a bet on a horse or a dog or participation in a football “ pool" with horror, succumb to the attractions of a deal in shares. When such a deal Is proposed to them by a glib prosperous-looking in-

dividual whoso -visit has been heralded by flattering, speolously-worded oiroulars, they seem absolutely unable to resist the temptation. Clergymen, well-to-do widows, professional men in country towns, retired army and navy officers, and , small capitalists of all descriptions, are the main sources of the sharepushers’ Incomes. Here are four illustrations given on the authority of Mr Runciman:— Clergyman Victimised. A North of England clergyman took part In three commodity ‘ pools.’ Made small profits, and then was induced to part with securities worth £3OO for shares In a worthless gold mine. A retired professional man, after listening to Sir Thomas Insklp’s recent warning, said to his wife: “That Is exactly'what has happened to us." In a few days’ time he parted with another £SOO to the same firm that had already victimised him. A widow was persuaded to take up 5s shares In a highly-speculative company at 15s eaoh, and lost her money, for the company was wound up with no assets. A retired railway engine-driver had saved £2OOO and invested it in war loan. He was Induced to sell this, and lost the whole of the £2OOO. In these and hundreds of other cases that could be quoted the money would not have been lost had the victims consulted either a member of a recognised Stock Exchange or their hank manager. The lure of “ quick profits " was too much for them, however—they believed what they were told without testing it, and today they are suffering for their foolishness.