The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-03-19

developments 60 tho d''rwrut NJ
tho investing public oud cr'duIou'
chambers ~ commerce Ig iu"
heading uf bulletin just issuod by
tho National vigilance committee OF
tho Associated N1.urluue club. "t
tho world. % copy uf which uJH boon
received by the local B,''nr IIsuo"s
bureau.
In this bulletin 30 ia pointed out
that with Tho rapid advance uf 1rru-
uHutIeH fulrn hua como into oNlst-
pucc pIuGt.lu of stock urumotcrH
Many u Those promoters found tho
oh stock rlmo too crowded with
competition and entered tao mower
ncll.
'It has come to tho attention OF
the National Vigilance committee
that various professional promoters
arc active in many sections of the
country, either Zoo the sale ~ sh1ro9
in air transportation companies,
promising large returns 90 investors,
or Getting up machinery which VIII
enable them at somc later date 10
sell Interests in such companies.
Famous Flyers Involved.
"ln spmc instances promoters
have gathered around them men Of
some aviation experience, who have
thus far enjoyed good regulations,
ana have with tho names Of these
men and their past aviation expert
once bought or borrowed respect
ability To create confidence without
which the professional promoter M
lost.
IN other instances. promoters
forwarded their plans for separat-
ing a gullIble citizenship from its
savings by the hurrah method OF
trading upon the community spirit
OF cities solicited 10 provide station
sites and franchises that viii put
them on the air transportation map
and inspire the envy OF somo less
fortunate rival city. This may lead
TO the appointment OF an "ucrOnnu-
ties committee" OF the Chamber OF
Commerce 10 work for tho coming
or ships Of tho alr.--a form Of rec
ognitiOn which amounts IT, indorse-
mont with news items In the local
press, thia provides tho "sot-up"
upon which promoters agents will
cash In when stock-sclling time rolls
ronnd. as IL inevitably does
Promoters OF this type are as
bold as they are resourcoful Not
only do they fairly ooze facts and
figures about aeronautics OF which
tho prospect" knows nothing and
which are used To mlolead, but also
they snare his savings by firing his
Imagination with the romance and
glory or this new art and industry
which national defense has brought
so prominently to the fore. They in
tlmate that chambers of commerce
are financially backing their pf-
forts; that rich capitalists are ad-
vancing all the money needed to do
preliminary organization work; that
profitable contracts with the post
office department and the express
companies are practically In their
pockets: and they talk gllbly of
government cooperation" and "of-
ficial connections" These, and
many other representation which
dazzle even skeptlcal city fathers,
have In them more OF deception and
fraud than OF truth and honesty.
SSmc Had Real Factories.
Some OF these promoters. boIdcr
perhaps and more vcrscd than
othors In the art OF largc-scale fax
cry claim to possess planes, often
designers, In n way to impress the
layman. Such promoters may even
have n plano or two-buUt tn order,
OF course. for stock-selling purposes
but not fitted for freight and pas
scngcr carrying service at u Irofit
In this connection, however Il
should be remembered that pr0mot-
ers who have attained the rank Of
professionals" do not make the
mistake Of having no goods to show
when they launch -sclling
campaign. pandolfo built motor cara
at Pan Town -ou-the Mississippi
aud tho fraudulent Emerson Motors
company OF New York had n real
factory.
Commercial aviation has "A brigh,
future IN America, But II ls a fu-
ture which must be realized by the
sane, clcar-headcd men In industry
ana finance, There Is no need Ia
rush. Haste IL waste. II means publi,
confidence undermined by uroallzinf
hopes Of prOmise-fed investors
Wildcntters who would sell hug,
issues OF stock without making clear
10 the investing public that 1t take,
a long chance on such enterprises IN
this undevelopcd field Of air-travo
are certain to injuro seriously the
development Of the industry.
such promoters are inslncere oi
worse. They arc not entitled tt
public confidence. They have little
10 lose hut their time. Their gain,
roll high with tho salo OF stock. oul
Of which they reward themselve,
richly not only by means OF liberia
com missions on tho sale OF stock
but by organization and preprgan.
izatlon expenses and various other
rcmuneratlve costs" which the "in,
vestoys" ana not the promoters pay
Furthermore, even honest air
transportation projects, from the
viewpoint OF investors must neCcs-
sarlly Doe considered I'm the extremely
speculative class until there IL an
adequate federal legislation regulat-
ing travel by air. No such lcgisla-
uon exists now and until Il is en-
acted the public had best refrain
from attempting flyers In such ven-
lures The enthusiasm and energy
which chambers OF commerce may
devote TO putting their communities
'on the air map" can find safer
aud more profitable exercise than
= Nthrough advancing the plans OF the
Nir-route promoter who has scant
re0ect for legal safeguards and
regulations II is desirable that
municipalities set aside landlnl
fields for punlic use but they should
be wary Of extending exclusive privi,
leges TO Stock-sclliug schomers.