Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-03-19
WILL HAVE DIFFICULTY IN
GETTING BY MEMBERS OF
BANKERS ASSOCIATION.
QUESTIONABLE FOR
PROMOTERS COMPLETED
Must Furnish Information Regarding
Concerns Which They Are Boost.
ing--Bankcrs Believe System viii
Materially Reduce Sales Of Stock
OF Doubtful Value.

Des Moines, March 19.--The Iowa
Bankers Association has embarked
upon definite campaign to curb wild
promotion of blue sky corporations,
thru sale OF stock TO Iowa bankers,
The legislative committee, headed
by c. ]. Wohlenberg. cashier OF the
! Holstein Savings Bank. of Holstein.
has completed compilation of ques-
tionnaire to which all stock statesmen
will he asked to subscribe. The plan
| Is this
Copies of the questionnaire arc to
association, all the ninety-nine coun-
ty agents, and 2l2 commercial clubs
! thruout the state.
These three bodies In all the coun-
ties will he asked to get together and
idecide upon place where the ques-
tionnaires may be kept on Ale.
Nctify Customers.
Word will he sent out by the banks
to all their customers telling Of the
QUESTIONABLE, and urging them not
to subscribe to stock. until the ques-
agent selling the stock They will he
told where they can find the filed ont
questionnaires on fle.
| Among the questions asked are. OF
course, questions pertaining to CAPT
taliza ton. issuance and amount and
kinds Of stock. etc. The questionable
then leads into methods of the COM
pnrfcs includine such questions as:
How much stock has been sold and
paid for?
How generally. is the stock distri-
hutcdo
Is there prAtod on your stock sub
scription blanks the percentage of
promotion expenses?
Ifsnot, why not? .a
What is the promotion expense?
| What percentage of the promotion
I expenTo" goes to the stock salesman
himself? To the promoter? To the
executive officers of the proposed
company aiding in or encouraging
the promotion?
| To whom and for what is the bal
ance. if any. Of the promotion ex-
| pense to so?
Names of Promoters.
Give names and addresses of pro-
motors What other companies have
they promoted? $50"
What has been the average month
ly orYweekly commissions of your
STOCK saIesmen? OF the promoter /?
OF the executive officers?
Do any of them. including the pro-
moter. own any stock in your COM
pany? 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 selling ar
gument. and do not contemplate a
permanent Investment?
Does your fiscal agent or pronot-
! Ing agency take investors notes or
investors liberty bonds or other Sc
| curities in payment? "-e
IF liberty bonds are taken, are they
taken at par value or market value?
| What is the entire and total
amount of investors notes taken in
Payment of stock, since your issue
has been offered for sale?
Takes up Notes.
The questionable then asks about
how the notes are handled. whether
discounted and traded for certih-
Gates Of deposit, and the interest
rates
1t inquiries into any purchases
made by the company, asking If any
thing was bought OF any of the pro-
motors or officials. 1t inquiries If the
company has rating in Dunn and
Rradstreets. its Indebtedness, constit-
uent companies, st ate permits, etc
The bankers feel that the question
naire plan will work towards weed
! ing out the worst, at least. OF the
blue sky companies. The plan worked
out means virtual boycott of all COM
panies that fail to subscribe to the
QUESTIONABLE in each county. The
missionaries are signed under oath.