FLEECING INVESTORS.

New Zealand Herald, Volume XLVIII, Issue 14567, 2 January 1911, Page 7

FLEECING INVESTORS.

THE " GET-RICH-QUICK" CONCERNS.

[from OUR own correspondent.]

London, November 25. A raw days -ago there was a raid on tho palatial establishment of a firm of Now York company promoters of tho " get-rich-quick variety. Mr. Hitchcock, tho United States Postmaster-General, says that within the last five years investors have been fleeced io the extent oE £25,000,000 By tho officials of corporations bearing high-sound-ing titles whose only business is to sell ornamental pieces of paper purporting to be shares in fabulously profitable concerns. The people who invest in. such concerns are technically known as "suckers," and - it is a maxim of the " get-rich-quick promoter that there is a . fresh " sucker " born every minute. A detective engaged in the exposures declared that these speculators meet somewhere in the 'Adirondacks, exchange lists of suckers, and propound fresh devices for securing : their sayings. When the authorities .searched the ,premises occupied by tho three arrested directors they found fresh contracts for advertising involving an expenditure of £60,000. At tho .time of their arrest the corporation officials were arranging at their own expense to send a private car with 17 customers to California to inspect some oil wells. The police authorities allege that the only oil well owned by the - corporation is worthless, and that the prisoners' scheme was to exhibit to their customers real spouting wells belonging to someone else. The prisoners, despite their immense revenue, are unable to obtain bail, the Government having attached their bank accounts in some dozen towns.