New-York tribune., 1922-09-03
Selling, 9,
Fakers Busy
On Radio
Alluring Prospecissses Sent
Out to Catch the Unwary
by Promises of Untold
Wealth i'm Short Period
Army of Solicitors Busy
Faking Also Being Done ON
Radio Apparatus; Fans
Urged to Buy Carefully

The recent warning issued by the
Better Business Bureau of New York
City against the stock selling activities
of an alleged radio corporation brings
to the fore situation that should be
made clear to all radio fans. The re-
markable boona experienced by radio
has proved to be fertile ground for the
activities of sget-rich- quick takers OF
all varieties, particularly the FRAUDULENT
stock promoter and the army of soliei-
tors urging the public to get in on the
ground floor
AT the outset, therefore, it will be q
wise plan for the would-be investor in
radio stock to remember one paint very
clearly, namely, that all the reliable
radio apparatus is fully protected by
patent rights and can only be manu-
factured by corporations that have been
engaged In the business of constructing
radio apparatus for some years. There
are, however, one of two exceptions to
this rule in the cases of new com
panies. but they are SO busy turning
out their apparatus that they have no
time to indulge in any wildcat promo
tlon scheme of other stock selling
propositions.
There are no opportunities, so far as
| know, for any one to make quick
fortune out of radio stock, except, pos
slply, the promoters Of some wildcat
scheme, who will get rich by playing on
the credulity of ignorant investors.
Ailuring Promises Made
After all, it is a very easv matter
TO tell whether or not q corporation
IS reliable. and whether its stock sell
ing campaign is on the level. It's stand
ing can easily be obtained from any
reputable clearing house, and, besides
this, fair indication can be obtained
from the quality of the literature that
accompanies the inducement to invest
IN the stock. Nearly all the wild
cat schemes incorporate in their pros
pectuses the most alluring figures and
promises that can be imagined. In
other words, they gild the lily in their
efforts to get Suckers
1t IS wise plan, therefore, to move
slowly when you receive such allurinp
promises. One of the tricks of the
"get-rich- quick" promoter is to incor-
porate his company with a name SINH
lar to some we'll known corporation Of
reputable standing, and also to place
on the list of directors names that are
similar to those of widely known finan-
cial men; or they may adopt the sub
terfuge Of saying that "Mr. Smith, one
OF our directors, was formerly asso-
Grated with the firm of J. p Morgan
d Co. and was a financial adviser to
that organization" or some such con-
hdence assuring phrase as that. Be-
ware of the stock salesman who tries
to rush. you into buying before it is
too late"
une prospectus that recently reached
me was SO worded that it guaranteed
beyond any question of doubt a return
OIL SlOO,0o0 on an original investment
of 5000 within six months. That ia the
kind Of promise that one should take
with a grain of salt. Anything that
offers more than 6 per cent on the in
vestment requires careful investiga-
ton,
Faking in Apparatus
At this time it is also advisable to
point out that taking in radio does not
merely apply to stock jobbing proposi-
tons, but also to the apparatus itself,
Some OF the alleged radio apparatus
now on the market is the veriest kind
of junk roughly copied from some
standard make. In this Office at the
present moment there is a telephone
plug that is the exact duplicate of a
we'll known reliable plug. The insulat-
ing material on 1T Is OF the cheapest
Kind, and as matter of fact, does not
insulate at all. The internal construc-
tlon of the plug is exactly the same as
the we'll known type, but the maker of
the copied article forgot the formality
OF insulating the outside sleeve from
the inside. This, of course, is not ap-
parent at first glance, but the moment
the plug is placed into the jack the
whole thing is short-circuited, and no
results can possibly be obtained.
J. am citing this as an illustration of
the care that should be exercised by
the radio fan when he purchases radio
parts particularly. If you are in doubt
regarding the efficiency of any par
ticular part, insist upon demonstra-
tion. Most of the retailers have sets
set up in their stores, and it is a very
easy matter for them to try out any
part in front Of you. Parts that can
not be tried out very conveniently,
should be gone over carefully before
purchase Is made