The Detroit times., 1916-11-25
EXPLORERS
OF HARBOUR
SUSPENDED

O.
oompan, sand however, that he mad
received notice ur the suspen ion
and would comply with It unil the
broker are given q hearing In LauS-
m pcc
IN addition 3. the suspension Ia"
s,cuutcs commission sent on an
Advertisement 90 various ncwseauets
Varnia re public that the liarfcln
,,Wpan had neither applied 70 the
crni u Tor approval nor ha3
D,au approved. anI advising agaiuw
ihc purchase OF the company's secU:
.lits
TIr COMMISSIONS action means
THAT np Nuhcr -harcs OF This stock
shcu b been selling rapid, 80
me mall investor wll Dee solid unfl
ihe commission decides Iethcr tho
company is safe Investment
ln haruoay with IT'S policy not 10
accept the advertising cf corpora
items coz e1mp1r.ps not approved ty
40 Ni,luaap Securities commission
THc tufs has not published any Of
oe flaming advertisement issued
oy thr rokeragc companies here.
e'.f1 %. neiimt News, Free Press
rl loafoM continued 10 accept OF
"s, c0uii get OF il
Tho N,es, Free Press and Journal
accepted tho Iarroun brokers ad
yer,iins It a sacrifice CT the gdyer-
tising "a members NJ the Detroit
stock exchange who withdrew tDolr
business nearly two week, arc. -fet
ms that they did not care to fu0
their advertising in competition GO
what they characterized the mislead
ing and sensational adyeriis'u or
the Harrouu brokers
Statements OF tic brokers hand.
linz the stock have Indicated .ba,
they ~ o. not operating with tho
fun con 0doncc that they were com
rlting with the Blue sky Law, I'm
der which the securities cor mis-.
sion acts
{ c. Harbrldre was asked nv The
Times whether or not the securities
commission had approved the sale
OF he stock He replied that he did
not wish 20 comment on this phase
OF IT, lie was then told ihv the
commission had not approved 1t, and
asked II he didn't know that the
sale OF ii under these conditions
was In violation OF the law He de
cllnel 90 comment on this. but said
that no did not feel be was violat.
ing any law.
Shenor admitted that the stock
had not been approved. but sought 10
clear hims Elf OF any violation OF the
law on The theory that the consti-
Wfionalify OF the commission was
now being tested in the United
states supreme court. Yet ~ the
same time he claimed to have pa
rprs on his desk designed TO be an
application 10 the securities commits
,inn for the sale Of the stock They
had never been seniet TO Lansing and
be- gave as an excuse for this delay
the fact that he was out Of the city.
In The meantime. however. his sales.
men were selling Harroun stock as
fast IA they could induce the work
ing man and the small investor TO
turn his savings over to them for
an ad interim non.negotisble cer,lf-
nothing more nor less than a
receipt for stock IN be delivered to
him six months hence.
larbrdge claims that the non
negotiable certificate was Invented
10 protect the investor from specu.
lstiye interests who might buy In
The stock NJ a low figure. Members
II the stock exchange characterize
the nd interim certificate or receipt
as non negotiable paper that en-.
ables brokers 10 boost the price OF
stock before the end Of the six
months period n they sec NJ.
Fred Voolbrccht, financial man
ager for the Ilarroun Motors cor
foration admitted Friday that the
approval OF the securities commits
sion had never been obtained by
tl,c corporation. but that the natter
Was under negotiation.
ShcdeK said N6olbrccht didn't
know what hc was talking about"
members OF the detroit Stock FIX
change have never challenged the
GOOD inteations Of the Harrcun cor
puration. however William Neer.
PRESIDENT Of the exchange said that
The corporation was merely the vic.
Tins Of questionable brokers in New
York, one of whom handled the