Western news and the Libby times. [volume] (Libby, Mont.) 1920-1933, 1930-08-28
Beware Of Stock
Switching Salesman

By Henri Par1nelee, Manager. Bet
ter Business Bureau of Spokane, Wash
ton.
The Better Business Bureau calls at
tention to an old practice that is being
revived and which is now being worked
all over the United States. You may
not have been approached on this pro-
position as yet but it is more than
likely that you will be SO it would be
we'll for you to be on your guard.
The practice is what the Better Bust
ness Bureau calls, Stock Switching.
This is not only one ST the greatest
evils in the fraudulent stock field but
is one in which the customer is nearly
always the loser. The Stock SWitcher'
through some sort of manipulation,
learns the names of holders of various
stocks. He may have done this by Sc
curing list of these stockholders. This
type OF a salesman is usually of the
high-pressure sort and his job is to
make the stakeholder feel that the
legitimate stock he has bought and
paid good money for, is practically
worthless. Some of these stock switch
ers will actually brighten their prospec-
/ tive customers into making an ex-
change of the stock they already own
for the stock the switcher is touting
i after he has completely convinced the
/ prospective customer that his present
| stock holdings are of little or no value
/ These fellows present very alarming
picture of the conditions of the man
agement of the company; the falling
off Of the earnings, whether true or not
and assert that it is only question
of time when the market price of the
stock will be only a small fraction o.
what it is now.
4 After the prospective customer ha
been completely scared and is dubious
or doubtful of the real value of thu
stock he holds, the "switcher' face.
right about and tells an enthusiastic
story about the wonderful value Q
the stock he is prepared to exchange
for the customers be worth
less stock. He doesn't bother to ex
plain lust why it is that he can be s.
generous in offering his valuable stool
! for that which he has just convince
| the customer is OF SO little value, blu
: by the time he has painted his gloom
| picture the holder of almost any leglt
innate stock is in serious doubts an
anxious to get out from under Some
) these statesmen work by mail, some .
telephone and others use the persona
call. Whatever the method Of ,approac
. their system is always the same.
For your protection the Better Busl
ness Bureau suggests few leadln
questions which you should ask a stoc
salesman who tries to get you to trac
YOUR good stock for that about whlc
you do not know anything.
|. Investigate the reliability OF tt
salesman and the house he represent
: 2. Investigate the security offere
you in exchange,
: s., Has the company successful re'
ord
3 4. Has the security a good earnir
7 record
S. Has the security quick resa
d market?
l. 7. Has the security loan value
Is your bank?
J. g. Has the security fair mark
1t value at this time2
IN There is not single one OF the
BIT questions that should not be answer
in a satisfactory manner if investme
=, losses are to be avoided. If you won
) like to have information that won
be Of a great deal Of assistance to "
: when approached on any investme
proposition, just drop line to t
Better Business Bureau of Spokane a.
:, ask for copy of our booklet HI
- to Invest Your Money"
y 1t is always well to investigate a
J securities before purchasing them a
the legitimate stock statesmen expe
OK ord ara r,,nra thar, willing to have Sill