The Holbrook news., 1919-01-24
SQUARE SHOOTING

eliminating the tendency on the part of some heretofore sIipshod promoters to play loosely with the funds of the public. In jus tice, it must be said that the majority of promotions in Ari- zona have been worthy of con- fidence and from those promoters who were inclined to act on the old tpublic be damned' policy. the people of Arizona are de- manding in no uncertain tones a right-about-face in their busi- ness methods; they are demand ing a run for their money in every case-and they are going to get it. There may be occa- sions where the rot is at present concealed beneath the skin and to any such we can promise there will be an accounting. Promot- CTS who are inclined to be lax in their methods. although of hon. est intent, are taking cognizance of the fact that the people are demanding eff ci en t business methods from those to whom they intrust their money.
 Consequently. the general run of present day promotions are being conducted on a business basis and loose methods which might have gotten by in the old Nevada days, and even more re- gently. are being frightened up. Promotion and stock selling re- quire just as efficient manage ment as any other line of busi- ness, but full credit is given the fact that to successfully promote development enterprise a heav- fer expense exists than is at tached to ordinary business in the way of advertising and com missions. Good business man agement will not, however. ex- pend 75 cents to obtain a dollar and It is a fallacy to state that money cannot be obtained except at the cost of an exorbitant DOT tion of the amount received One of the now defunct com panies who secured a large amount of money from the peo- ole of Arizona is said to have acted on the assumption that if it costs 75 cents to obtain dol lar it was still good business. It. was-for them. This company also indulged in gross misrepre- sentation and found that chick ems DO come home to roost. As we stated before, this company IS now in quite a comatose con dition. The regulations of the Arizona Corporation Commission are of nature as to prevent such procedure as general rule, but aside from the matter of pre- vention, whenever circumstances exist wherein it takes the bulk of the money received to obtain the smaller end for development it is time to cease further effort to finance until a more propiti- ous moment.
 Permits of the companies or ganized for development pur- poses require that they shall use at least 663 per cent of all money received for actual development. and many are using but 20 per cent for overhead, advertising and commissions. Two-thirds of the money received on an aver age quantity of sales is sufficient to carry a meritorious proposi- tioy te successful conclusion and the interest of the investor de- mands that at least this amount shall be properly expended in development.
 The fact that it is now open season, in the year nineteen hundred hnd nineteen, for ques- tionable promotions, is not alto gether responsible for the fact that development enterprises in Arizona are now being conducted with greater care than in the past, taken as a whole. Rather, lit is the case that these gentry see the handwriting on the wall and have ceased to ply their wiles in this section. Neither is it as possible for man who has pre- Yiously been identified with fail ure to obtain a responsible berth rr