The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-06-29
IS BLUE SKY
MULTI.X CO.'S
CHIEF ASSET?
Vague and Misleading State
ments Made by Persons Sell
ling Stock to Local People
DISCREPANCIES Cited.
PERSONS HERE INVEST

Many Wayne county people who
Tx Airplane and Motor company are
beginning to wonder if they have made
blue sky investment.
This company which is promising to
erect and operate a factory north Of
Spring Grove, has been selling stock
in this territory, and the total already
subscribed amounts to something over
$25. 900.
Many men and women residing in
Richmond and community who have
money to invest and who have been
approached by Multi-X stock statesmen
1t having too much Of blue sky"
background to measure up to their
standards of good business judgment.
Decide Not To Invest
Several investors who had seriously
considered the purchase of Multi-X
stock decided not to do so, it is un-
derstood, after consultations with
their bankers.
AS far as is known the stock sales
men or representatives of the com.
pany have never submitted financial
statement of the assets or liabilities
OF the company. although Richmond
business men have repeatedly asked
that statement be submitted, so that
they could determine their financial
standing and the reliability of the
company.
When representatives of the COM
pany were asked if they had any bank
ing references in Chicago, Indiana
polls or Richmond, they stated they
did not
"Incorporated for $1,000 ,ooo'
Briefly stated the history of the
Multi-X Motor company shows that it
has been incorporated for $3,000,000
under the laws of Delaware. Half of
it's incorporated valuation is to go to
those men who have conducted the
company's experimental work. AL
thoug this experimental work has
been carried on for about 10 years, the
company has not yet completed nor
sold one of it's engines.
The plans Of the Multi-X company
call for the selling of 100000 of stock
in Richmond and vicinity, of which
amount 100000 would go to the pro-
moters in charge of the local stock
selling campaign as commissions.
Miss Truth in Two Gases
In at least two instances, state
ments made by a representative of
the Multi-X company in regard to its
business prospects have proved to be
without founda tion Of fact
The Multi-X official in question as
serted that arrangements had been
made by his company to manufacture
from 10000 to $4,000 of its engines
for a large Indianapolis automobile
concern for installa tion in a new type
of car which was to "revolutionize the
automobile industry"
When this matter was called to the
attention of the automobile company
flat denial was issued that that COM
pany had never considered purchasing
Multi-X engines.
At another time a Multi-X official
stated that his company had entered
into an agreement with the Atkins
Saw company at Indianapolis for the
manufacture of 10000 engines for use
in porta BILE saw mills.
Statement Is FIatIy Denied
This statement was flatly denied by
an officer Of the Atkins Saw company
when 1t was called to his attention
He did state, however, that the
Multi-x company had offered to make
engines for porta BILE saw mills provid-
ing the Atkins company would ad-
vance the money for the purchase of
raw materials.
Publicity given to these statements
made by Multi-X representative and
their ensuing refutations by officials
OF the two Indianapolis concerns has
done much to create general distrust
in the motives of the promoters of the
Multi-X corporation.
Those who have asked representa-
tives Of the Multi-X company the rea-
son why Richmond was selected as
the site for their factory have been
glibly informed that the field where
it Is proposed to locate the factory is
considered to be the best flying field
in the United States"
1t Is a generally recognized fact
Continued on Page Three)