New-York tribune., 1922-08-17
|R d q 10 Stock
Needs w alcEaing,.
Bureau w arms
ssBetter Business Report
On Selling Campaign OF
international Corporation
Reveals Discrepancies
Big Profits Claim Denied
Officers of Company Admit
TO the Board Misleading.
Phrases i'm Prospectus

Broadcasting the results Of en- in
vestigation into the affairs of the In
ternational Radio Corporation II, it's
initial bulletin, issued yesterday, the
Better Business Bureau Of New York
City, recently organized by repre-
tentative business ard financial firms
for public service through examination
into and report upon financial and
merchandise advertising and selling
practice, cites the methods employed
in selling stock to finance this COM
pany and the lures held out to the in
vestor as warning against stock
jobbing ventures in the radio field.
The board of directors Of the bureau
is constituted as follows: D.
Houston, president Bell Telephone
Securities Company; r. 7. H Halsey,
of Tefft, Halsey g. Co.; Lewis e. Pier
son, chairman of the board, Irving
National Bank; John j. Pulleyn, presi-
dent Emigrant Industrial Savings
Bank; Gates w. McGarrah, chairman
Mechanics and Metals National Bank;
@. w. Hodges, of Remick, Hodges g. Co;
II. s. Houston, chairman Board of
Vigilance Trustees, Associated Adyer-
tising Clubs; J. @. White, president
J. G. White & Co.; William H. Barr,
president National Founders Associa-
tion; II. d. Robbins, chairman Ma
tional Vigilance Committee Associated
Advertising Clubs, and Russell r.
Whitman, publisher New York Com
mercial."
Many Claims Found False
Inquiry by the bureau has developed
that mary Of the claims advanced as
sales arguments in the campaign to
distribute international Radio Corpora
tion stock are at variance with the
facts, according to admissions made by
men identified with the management
and promotion Of the company. The
that has toured the streets of the city
in an effort to stimulate the enthusi-
asm of potential buyers was equipped,
for example, only in part, If at all, with
~. r. c." apparatus. OF this particu-
lar phase of the campaign, conducted
by M. Phantom, the corporation de-
clares:
"He makes the impossible possible,
receives while in motion, with the aid
of his international Radio Corporation
set and loud speaker"
The price of the stock, the bureau
finds, was arbitrarily advanced on July
20 from 81 (par value) to $1.50. com
mon expedient Of vendors Of blue-sky
securities. A. H. Kleisrath, chief
associate Of Charles Beadon in pushing
the sale of the stock, explained upon
examination by representatives of the
bureau that this advance had been used
merely as an argument why prospec-
tive stockholders should buy shares at
81, and that none had been sold ac-
tually at S1.5O.
Claim Big Profits
The explanation Of the advance in
price TO prospective buyers was that
the company has been. amaking big
profit all the time" accompanied by the
prediction that shares would be SELLING
at 81 each before the snow fiies.''
"Three hundred per cent profit Is the
average we are making on our prod
ucts," was another claim put forward.
With reference to these the bureau
says in it's bulletin.
Mr. Beadon had admitted to the
bureau that the company would be 'on
the rocks if he did not feed it money
constantly from stock sales. The state
ment was made by consulting engi-
neei' ct The company on August 2 that
the company has not operated at a
profit and that untitled orders amounted
to no more than few thousand
dollars"
Harry G. Burrell, formerly associ-
ated with local trust company and
for time managing director Of the
!. r. G., but since resigned, is described
IN the eempany's literature as 'inter-
nationally known to business men and
has been the associate of such we'll
known magnates as J. P. Morgan, Cor
nelius M. Bliss jr., Governor Benjamin
Strong jr., ]. D. Rockefeller jr., the
late Henry P. DAWSON, Herbert Hoover
and score of others The promoters