The daily Gate City and constitution-Democrat., 1920-03-26
Iowa Bankers Association Prepares
QUESTIONABLE for Stock Sales
men to Fill Out to Protect
Investors
AUTHORITIES GET THEM
Commercial Clubs, County Agents.
and Bank Members Receive
These Important
Papers.

The Iowa Bankers association has
embarked upon definite cam palsn
! To shut down on wild promotion OF
blue sky corporations, through sale
of stock TO Iowa bankers.
The legislative committee, headed
by c. j. Wohlenberg, cashier OF the
Holstein Savings bank OF Hoistein,
has Just completed compilation OF a
QUESTIONABLE, to which all STOCK
statesmen will be asked to subscribe.
The plan is this:
Copies OF the questionable are TO
be furnished all member banks OF the
association, all the ninety-nine county
agents, and 212 commercial clubs
throughout the state.
These three bodies in all the cotin-
ties will be asked to get together and
decide upon place where the ques-
tionnaire may be kept on file.
Protect Customers.
Word will be sent out by the banks
to all their customers telling OF the
QUESTIONABLE, and urging them not
To subscribe to stock until the quss-
tionnaire has been filed out by the
agent selling the stock. They VIII
be told where they can find the filled
out QUESTIONABLE on file
The QuestionnaireS are complete,
and have been examined by attorneys
for the Bankers association to make
sure that they cover every phase Of
stock promotion.
Among the questions asked are OF
course, questions pertaining to capl-
talization, issuance and amount and
kinds of stock, etc. The questionnaire
then leads into methods of the com.
panies. including such questions as:
Here are Questions.
How much stock has been sold and
paid for?
How, generally, is the stock dis
tributed?
Is there printed on your stock sub
scription blanks the percentage Of
promotion expense?
II not, why not7
What is the promotion expense?
5 What percentage of the promotion
expense goes to the stock salesman
himself? To the promoter? To the
executive officers of the proposed
company aiding in or encouraging the
To whom and for what is the bal
ance, if any, Of the promotion ex-
pense to go?
Give names and addresses of pro-
moters What other companies have
they promoted?
What has been the average month
ly or weekly commissions of your
stock statesmen? OF promoter? or
the executive oficers7
Do any of them including the pro-
meter, own any stock in your COM !
pany and if so how many of them?
How much on an average do they
own?.
How was such stock paid for?
Are you aware that they are hold |
ing the stock merely as a selling |
and do not contemplate a |
permanent investment?
Does your fiscal agent or promot- |
ing agency take investors notes or
investors Liberty bonds or other |
securities in payment?
II Liberty bonds are taken are they !
AIKEN at par value or market value? !
What is the entire and total amount |
If investors notes taken in payment |
If stock, since your issue has been
offered for sale?
Notes. !
The QUESTIONABLE then asks about /
low the notes are handled, whether Il
discounted and traded for certificates
If deposit, and the interest rates.
II inquiries into any purchase made II
~ the company, asking II anything
vas bought OF any of the promoters
,r officials. 1t required If the COM
,any has rating in Dunn and Brad
treets. its Indebtedness, constituent
state permits, etc.
The bankers feel that the question.
laire plan will work towards weed
ng out the worst, at least, of the Il
,lue sky companies. The plan worked Il
,ut means virtual boycot of all COM
,anies that fail to subscribe to the
in each county. The
are signed, under oath