Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-07-03
By FREDERICK
J. HASkN

found with which to fight the dishon-
est promoter. As a rule, he says,
these promoters are shrewd enough to
keep within the law, even in those
states where "blue sky" laws exist, de-
signed to protect the pocketbooks OF
their citizens.
The committee found that the meth
DDS Of this Wallingford type Of pro-
moter were usually the same. Rarely
was the cost of foisting stock in the
company on the public less than 40 or
so per cent of the capitalization, DOOM
ing the concern to failure from the
start Even bankers and conservative
! business men-not in the moving pic
ture business. howeyer-have been
drawn into investing in the fake con-
| Germs.
During the past year the attention
of the public has been called to the dan
ger of this sort of investment with
such force that very few, if any, new
producing companies have attempted
to sell stock within the past six
months" says Mr.. Quirk in report OF
his committees activities. p.
In not a single instance has one OF
the questionable concerns made good
financially, it was. found, nor has one
of these wildcat companies made SIN
gle real motion picture production.
The promoters, pointing to the glitter
ing past of the big concerns which have
made fortunes for many, and the sup
nosedlv ROSY future of their own
scheme. nevertheless have met notable
success in coaxing -too-reluctant
currency out of the pockets OF their
victims and into their own.
Some Examples.
Not very long ago a promoter of the
shady sort, who had maintained an of
flee in Washington for long time and
later in New York had the attention
Of the country drawn to him and his
scheme when he disappeared from
New York. To date he has not been
located. Before he left, however. he
victimized the people of those two
cities to the extent of about half a
million dollars. Another enterprise OF
this sort in a western city, described
nv the Vigilance Committee of the
movie people as a gigantic enterprise
had to be dropped by the promoters
when. after an investigation by the
Vigilance Committee, the Chamber OF
Commerce of this city and the leading
bank withdrew their support OF the
scheme.
The committee even went out OF the
country in its work. It's report de-
scribes as the most daring of these
operations the work of one NJ. Himmel
who enjoyed a meteoric career termi-
mating a year ago He was the organ
izer Of a hundred million dollar motion
picture syndicate through which he
proposed to control the moving picture
industry of the entire world. He was
going to permit" the American public
to subscribe to half Of the stock in his
venture, and American business men
Of excellent reputation became inter-
ested in him and his plans.
The Vigilance Committee began max
ing quiet inquiries in Paris and New
York. The information uncovered was
furnished to the newspapers. AS a re-
suit of what was shown Himmel was
arrested in France. Recently he con-
fessed that several of the documents
used by him to induce people to pur-
chase stock in his company were fraud
ulent.
The work of this committee is reduc-
ing the numbers of this new brand OF
wildcatter. but it has not entirely been
wiped out this Walingford of the film.
Therefore the moral is: Investigate
with care before you buy film stock.