Smyrna times., 1933-04-05
CHAIN
SELLING PLAN
Under Watchful Eye of the
United States Govern
ment at Washington
100 IN NEW YORK USE 1T

New YOrk.-EndleSS chain selling
enterprises, operating from this city,
have spread from Broadway to
Main street, and are keeping postal
authorities busy. So far there has
been no decision on their legality,
but it was learned that the gov
ernment is investigating all chain
schemes, operating through the
mails, which has been called to its
attention.
There are at least 100 get-rich-
quick chain selling schemes, being
operated from New York city, ac-
cOrding to information from the Ma
tiOnal Better Business bureau. Some
are conducted by honest business
men, other by fly-by-night concerns,
and few are nothing less than
rackets.
Fountain pens, hosiery, pocket
books, golf balls, kitchen gadgets,
razor blades, food supplies, jewelry,
watches, mems white flannel trous-
ers, and even real estate have been
set forth as the mediums of "awak-
ening America and insuring the re-
turn Of happy days.
Glib Promoters.
Glib promoters have demonstrated
mathematically how the ninth step
in the chain selling scheme will net
every participant commission Of
$19.301.25, with the original sale Of
only four pieces Of merchandise.
What will happen when everyone
has bought a wallet or a pair Of
socks has been ignored by the pro
mOters.
Women's bridge clubs in West
chester and Oh Long Island have
been working for the chain sellers.
Charitable organizations have par
ticipated in the various make a mil
lion" schemes. and the telephones
in the Better Business Bureau, both
national and local, have been ring
ing with inquiries concerning legit-
imacy Of the different schemes. The
only advice either bureau has to Of
fer was that nobody knows vet
whether il is legal or not, but that
the participants were not likely to
make any great amount of money"
Neither bureau has endorsed any
Of the schemes. The Better Busi-
ness bureau Of New York city, with
offices at $50 Broadway, has found
it difficult TO draw the line
Plenty Of Inquiries.
"Some Of the chain sellers are
honest business men," said II. j.
Kenner, while others are operating
shady, tricky concerns. We have re
ceived no complaints but we have
been flooded with inquiries. 1t is
not new scheme, for | recall such
methods of salesmanship were pop
ular in 1912. We have not yet seen
where we can make a complaint
against the plan as a whole"
c. II. Clarahan, postal inspector
in charge of the New York Office,
said investigation of endless chain
selling organizations was a long
drawnOut job. He pointed out that
each concern had to be investigated
individually, given public hearing.
and then frequently the case had to
be carried through the courts.
Here's how it operates: The par
ticipant buys an article for $3.50 and
10 cents in stamps and then sells
four articles at the same price, max
ing a commission of S1.2j on the
fourth sale. Thereafter the agent
sells three other articles, making
$3.75. His three customers sell three
each and the original participant
gets $33.75 in commissions and the
others are ready to start their profit
sharing. BY the ninth step the to-
tai commissions amount to more
than $4,000 If the chain remains
unbrOken.