Evening star., 1932-10-20
WARN Of BREWERY
STOCK PROMOTIONS
Better Business Bureau
Heads Report Beer Specu-
Iation Projects in D. C..

Specializing on the prospect of an
early return Of legalized beer, profess
SIGNAL stock promoters are deluging
Washington and other cities of the
country with sensational appeals to the
public to invest savings in the purchase
of stock in companies which propose to
build or buy breweries. according to a
report today by the Washington Better
Business Bureau.
Individuals with even as much as
from So to $40 at hand are being urged
by the promoters. in literature sent
over the District. to start buying stock
in the new brewery corporations. and
to start now. so as to get in on the
ground floor"
Predictions are freely made by the
stock promoters of very large profits"
and of their confidence in the great
success OF the operation of the pro-
posed new brewery enterprises, it is re-
vealed in advertising matter of the
stock promoters which has been gath
cred by Louis Rothschild. director of
the Better Business Bureau.
Warned to Investigate.
The data made public by Rothschild
was coupled with a warning to investors
to investigate before investing.
professional stock promoters" he
stated, are endeavoring to capitalize
on the possible return of beer and many
hlgh-pressure selling schemes are
springing up, not only in Washington,
but throughout the country.
When, as, and if beer returns. nu-
merous breweries- already established
which now are manufacturing near
beer. will be ready almost immediately
to supply the legalized demand. This
Is not deterring those interested in
earning commissions on stock sales
from promoting companies. formed py
those who have little more than lust
an idea that the brewery business IS a
good one to go into.
fortunately, these promoters 'vir-
tuouSiy' admit that their proposition is
speculative. The Better Business Bu-
reau agrees that the propositions are
speculative.
Compared to Is Aviation Schemes.
The present promotions are to be
compared to large number of avia-
ton schemes which were foisted on
the public in 1927, when Lindbergh
made his flight over the Atlantic. At
that time thousands of persons
Throughout the country and in WASH
ington invested too well but not wisely.
The Better Business Bureau again
calls attention of the public to the
necessity, in the interest of safety. to:
Before You Invest-Investigate The
bureau cautions individuals that an in
vestigation should include study of who
are the promoters, their past records.
what Is being done with money COL
lected, the security of the enterprises.
their possibilities of actually doing busi-
ness. and whether or not their total
assets are merely an idea"
thousands of shares of stock are Of
fered for sale by corporations uromot-
ing companies, which, it is declared.
are planning to buy or build breweries.
Asked to Inclose Money.
In one case, letters and literature
frankly ask the prospects: will you
gamble IS or $40 with us?" Individual
investors are asked to sign blank orders
for stock and to inclose a bill of SIS
or $40 denomination.
The par value of stock is announced
at 81 per share.
One of the promotion concerns in its
brochure, a business-like looking folder,
states: This stock is offered as a
speculation"
The brochure of another concern is
printed on large sheet. in red and
black ink, and carries an illustration of
dollars being showered upon homes,
brides and bridegrooms. golfers and
motorists and sportsmen who presum-
ably have invested in stock in the
brewery enterprises.