Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-12-09

two years investors have been. per-
suaded to part with not less than
$25, 900, 900 in exchange for various
kinds of securities, from which there
is little hope of return in the form of
profits or dividends, and in many
cases not even a substantial prospect
Of salvage through liquidation.
The business Of selling stock is
are clever, c~ustomarily avail them
selves of competent legal advice and
proceed with the utmost thorough
ness, method and system in the pro-
motion of the issues in which. they
are interested. Schools for statesmen
are a common incident to these cam
paigns, and in these schools statesmen
are trained in the effective methods
Of making their arguments plausible
field they are in charge of an expert
manager. They operatesfrequently in
groups dividing a given territory
among them, and rapidly and syste-
matically clean up all the prospects"
within that section. The compensa-
tion of these men is usually in the
form Of commissions ranging ONE
times as high as rs per cent, and
commonly from IS to 20. per cent. 1t
ID, I1IC1C1ol0y NlCd1 S4AoS ooASS-
man, who could average the sale of
only one 500 share per day would
make a profit of from SIS to $25 a
day, or much better earnings in all
probability han he would be able to
obtain in any other line of business.
A student in n of these salesman
schools reports the following state
ment from the instructor:
1.-THE sales manager gave us a talk
on financial conditions in this country
as we'll as in Canada, dwelling par
ticularly ON the fact that there never
has been a time when all h suckers
have so much n as they have at
| present. He said as 500 as the local
stuff (stock)' is disposed of, there will
be a manufacturing project with sew
eral millions Of stock to sell, which
will be located at......9"
The Liberty bond holdings of both
the farmers and the city dwellers are,
as secret service reports made to the
district committee on capital issues
for this district indicate, the objective
of, the doubtful enterprises are now
moving, and it is probable that unless
holders of Liberty bonds are warned,
that there will be a raid of consider
able proportions upon their holdings,
and many of the bonds which should
remain as an investment in the and
of their present owners will be taken
over by promoters in exchange for
worthless or doubtful stock or Sc
curities.
The existing capital issues commit
tee in Washington and it's branches
will have an active life terminating
six months after the presidents proc
lamation announcing the treaty OF
peace. It will exercise supervision
over all issues of securities as before,
with the exception that it's jurisdiction
over issues not exceeding 100000 has
been suspended. There is a strong
probability that the president, acting
under the authority contained in re-
cent financial legislation of congress,
will delegate to the treasury depart
ment OF the United States new au-
thority to control dealings in Liberty
bonds, especially those Of an objec-
tionable character. In the meantime,
it is the consensus of opinion of men
who are familiar with the present
situation that Liberty bond holders
should be advised that their bonds
have a definite value f1uctuating with
the market from day to day. They
should be warned not to deal with
travelling stock peddlers or buy stock
or securities except through reputable
banks and investment houses or from
agents having standing and reputation
and established in business locally.
They should be cautioned, il prompted
by necessity to sell their bonds, to
first take the ~precaution of consulting
with their local banker and obtaining
the market quotations.
If the average investor had know
ledge of the methods employed by
those interested in promotion
schemes, he would hardly counte-
nance any proposition involving ths
exchange Of Liberty bonds for stockA
or in any event not until the propo.
& sition had been submitted to the judg.
ment of the local banker.
Banking and business conditions
3 throughout the district remain much
the same as during the previous
month. A favorable fall permitted