The Birmingham age-herald., 1922-09-03
STOCK SELLING TAKERS BUSY ON
 RADIO DEVICES
AIluring Prospectuses Sent Out to Catch the UnWary by Promises of Untold
 Wealth
By JACK BINNs

The recent warning issued by the Better Business bureau of New York city against the stock selling aotivt- ties of an alleged radio corporation brings to the fore a situation that should be made clear to all radio fans. The remarkable boom experienced by radio has proved to be fertile ground for the activities of "get-rich- quick" fakers of all varieties. particularly the fraudulent stock promoter and the army of solicitors urging the public to get In on the ground floor.
 At the outset therefore, it will be a wise plan for the would-be investor In radio stock to remember one point very clearly. namely, that all of the reliable radio apparatus is fully pro- tected by patent rights and can only be manufactured 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 companies, but they are so busy turning out their apparatus that they have no time to indulge in any wildcat promotion scheme or other stock selling proposition.
 There are no opportunities, so far as I know, for any one to make a quick fortune cut of radio stock. ex- cept, possibly. the promoters of some wildcat scheme, who will get rich by playing on the credulity of igno- rant investors.
 AIIurIng Promises Made
 After all. it is very easy matter to tell whether or not a corporation Is reliable and whether It's stock sell Ing campaign is on the level. Its standing can easily be obtained from any reputable clearing house, and, be- sides this, fair indication can be ob- tained from the quality of literature that accompanies the indueement to invest in the stock Nearly all of the wildcat schemes incorporate In their prospectuses the most alluring figures and promises than can be imagined. In other words. they gild the lily in their efforts to get the suckers"
 It Is a wise plan. therefore, to move slowly when you receive such allur- ing promises. One of the tricks of the getrich-quick" promoter Is to incorporate his company with a name similar to some well known corpor ation of reputable standing, and also to place on the list of directors names that are similar to those of widely known financial men; or they may adopt the subterfuge of saying that MT. Smith. one of our directors, was formerly associated with the firm of J. P. Morgan & Co.,, and was a finan- cial adviser to that organization" or some such confidence-ass phrase as that. Beware of the stock sales man who tries to rush you into buy ing before 1t Is too late"
 One prospectus that recently reached me was so worded that 1t doubt return of sf00,o0o on an orig inal investment of $500 within six months. That Is the kind of promise that one should take with grain of salt. Anything that offers more than 6 per cent on the investment requires careful investigation.
 FnIxing In Apparntus
 At this time 1t Is also advisable to point out thaat faking in radio does not merely apply to stock jobbing propositions. but also the apparatus itself. Some of the alleged radio ep- paratus now on the market Is the veriest kind of junk roughly copied from some standard make. Tn this offfce at the present moment there Is a telephone plug that Is the exact duplicate of well known reliable plug. The insulating material on it is of the cheapest kind. and as mat ter of fact does not insulate at all. The internal construction of the plug Is exactly the same as the well known type, but the maker of the copied ar ticle forgot the formalitv of insulat- ing the outside sleeve from the in- side. This, of course. Is not appar- ent 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.
 I 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 doube regarding the efficiency of any particular part, insist upon dem onstration. Most of The retailers have sets set up in their stores. and 1t Is very easy matter for them to trv out any part in front of you. Parts that cannot be tried out very conven- iently should be gone over carefully before purchase is made.