The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1920-04-26
BEWARE THE STOCK PROMOTER

'Neyer was there a time when
more stock promotion schemes have
been foisted upon the people of this
state" declares a recent bulletin of
the Iowa Bankers Association. "Pro-
motions of every kind, description and
color are being presented to the I'M
suspecting farmers, wage earners and
others but particularly the farmers.
There is probably not a banker in
Iowa who cannot tell of some hair
raising procedure under which smooth
tongued and glib stock statesmen
have loaded some farmer customer.
''The more warnings that have been
issued by. business and professional
men, bankers, farm organizations and
commercial clubs, the greater the
number of suckers are uncovered by
the army of stock statesmen with which
Iowa is infested"
Iowa newspapers declare the COM
missions paid these stock statesmen
have been tremendous and that many
men have left other occupations to
reap the harvest from the "wash
marks" The people, it is reported not
only gave up their cash readily but
if they could not pay cash they were
willing to give notes which were dis
counted by the statesmen at the banks.
Stocks, in many cases, it is said,
were easy the price was raised, in
many cases the statesmen getting all
over certain price. The DesMoines
Capital says:
"The large and unnatural amounts
made by stock sellers has done great
damage to legitimate industry. 1t
will be hard to make a young man
content to work for $40 per week in
some legitimate business after he has
put in year in stock selling at a
profit of $4,000 per month. There were
stock statesmen, plenty of them, who
were making $4,000 per month. Others
made $4,000 per month. and in some
cases the sums were beyond all reas-
enable comprehension"
Instances are cited to show how
much of the money from the investor
goes to the promoter and salesman
and how little to the company itself.
A farmer it is stated bought $4,000
worth of stock in a company and
later it was represented to him that
the company would make profits of
40 per cent and that if he would take
another $4,000 worth the salesman
would guarantee to sell it for him at a
profit of % per cent. Now the farmer
is suing to have his money and notes
returned to him.
Another retired farmer it is said
bought $4,000 worth of stock in a
speculative enterprise. He gave notes
and the promoter offered these to the
bank at $4,000 discount. 1t is prob
able that the promoters share also
was heavy so that at best only rs per
cent of the money invested went into
the treasury of the company and
probably only from so to so per cent
| Over 100000 worth of stock was
sold in Iowa in meat packing COM
pany which the attorney general OF
the state declared was insolvent be-
fore even beginning to put up its
buildings. At his instance a perma-
nent receiver was appointed for the
company.
There are many safe investment.
available to investors. The safest Of
these are government securities. Wal
savings stamps and treasury saving
certificates are always worth more
than you paid for them and can be
redeemed always at a profit. Liberty
bonds at present market prices yielC
Approximately 51a 20 and all are
backed by the entire riches and re
sources of the greatest nation of the
world.