The Detroit times., 1916-11-23
BROKERS
CONDEMN
HARROUN AD
Will Not Advertise In
' Newspapers Print
ing Them


Q chase Of Harroun motor stock. are
40 misleading. in the opinion OF
many reputable and reliable Detroit
brokers. members OF the Detroit
Stock exchange that they have with
drawn their advertising from the
columns OF Detroit newspapers eX.
plotting the Hsrroun business.
These papers are the Detroit News,
Free Press and Journal
william A Neer. o; William A.
Neer 4 Company. president OF the
Detroit Stock exchange. which COM
prises 90 brokerage firms, was one
OF the frst 10 withdraw bis adver'
tising
Il did this--and ! understand 9th
or brokers have done likewise.
he said. because We ss reputable
firms do not desire 70 run our ng-
vertising alongside that OF broker
age companies that are misleading
the public, and especially the small
investor"
The Harroun Motor company.
which Is building a factory In
Wayne. Mich, is capitalized al SO
000. 900 or this amount II IS re-
ported that $1,000. 600 viii be re
tained in the compsny's treasury
$4,000. 900 given 20 Ray Harroun, one
or the promoters, and the balance
OF $4,000. 900 Is being sold to ne
IN o
s. per share. The par value Il SO
"The company itself has good in
tentions." Mr. Neer went on. out
II has unfortunately fallen into the
hands OF questionable brokers In
New York. We are advised that the
stock is being placed on the market
at such 4 figure that after advertis
Ing and brokerage commissions have
been paid, there viii be left only An
approximate $4,000, 600 as the actual
capital for building the plant ana
producing cars. This believe IN
sufficient
For instance, with an investment
OF nearly Ss,000,000 In equipment
NAN U4AAti 4hAtt AAAF VI "a ~'kAAA NkAAa
pany OF Canada produced only %.
300 cars during the 10 months end
ing July 81. 1916. In other words,
this amour. OF capital was neces-
sary 10 make this many cars. The
Harroun company is promising 70
make $4,000 cars the first year This
is but 1900 short OF the Ford's pro
duction The prices for the Ford
afe about the same as those 10 BE-
asked for the Harroun car. Il Is
generally conceded that the Ford
company stands foremost as 20 or
gHnization and equipment and II a
new company can approximately
equal the Ford company's rroduc
ton on about one-quarter Of The
Ford's working capital. II il mar
Neious
People Eho arc buying Hsrroun
stock are not getting stock ceruf /
Gates az his time They are getting
an ad interim certificate. nonnego- I
4 Bile, which ~ the end Of ais
months will be exchangeaole for /
regular stock certificates. This gives 1
the brokers chance 20 boost the I
price Of the stock as much as they |
see fit in the meantime without /
meeting any selling orders. as was |
experienced IN the Emerson motors. !
an expose OF which was recently !
printed in The Times The ceruh
fg f.f f~
cases thu people who are buying q 4
do not understand what they are 1
getting They do not know that the I
ad interim non negotiable certificate 4
they receive for their money cannot 4
be sold or traded
Brokers handling the stock they I
are not members OF any exchange
are operating branch Offices in the
outlying factory districts and keep
ing open until 10 O'Clock al night
to sell 10 working people. many OF
whom do not know. nor take tfe
time to find out the meaning OF tfe
provision ad interim ceruncst..
non.neeotiablc.
A"Nf y ANAi 20 ~ ~ my FAN'fN4
ine from The lews, Journal and Free
Press because / fecl that II my sd
vertising IS alongside that of tls
Harropn company. that wnen fhe
public finds 1ut the Harroun con
Germ is not long what The adver'is
ing promises, it viii regard us ia
the same class. and We % nor wisL
10 either compete with such fou
of advertising. 1r convey 20 The rat-
lie mind thru the presence o. oef
advertising beside that ~ The Ha-
roun advertising the impress
that We are not handing b. becal
OF competitive reasons. -,
I'VE could nave had the Harrogc
business or could handle it nou a
10 per cent commission. but -
not believe II safe and wise .a
yestment for our clients
~ l.. Robinson. OF u W Noble
& Company. brokers. says that 10
his Judgment Il Is physical impos
sibility for the Harroun company 20
make good its promises with work
ing capital of s2,500 600. II W, No
BILE a. Company is another nrm that
has Withdrawn its advertising from
newspapers handling Harroun ad
VcrtisinE
Other members OF the stock ex.