Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1939-02-13
To Regulate
Installrl1ents
Investments
Drastic c ontr O. | s
Would Be Imposed on
Out-of-State Compan-
les; Secretary of State
Would Have Control
of Enforcement
Daily Dispatch Bureau,
In the Sir Walter Hotel.
By HENRY AVERILL

Raleigh, Feb. ia bill designed 10
protect North Carolinians who have
deposited more than $5,000,O0O in in
stallment investment companies not
located in the State is nearing COM
pletion and will likely be introduced
in the Senate some time this week.
possibly tonight, though probably not
before Wednesday.
Full details of the measure have
not been completely worked out but
its sponsors believe it will furnish
much needed regulation of business
which has in many cases proved moth
ing less than racket of the worst
sort.
It will have as its primary purpose.
its hackers declare, safeguarding the
comparatively poor Tar Heel who
puts something like $40 a month into
glittering installment investment
schemes which often prove about as
substantial as the costume of bubble
dancer.
Secretary of State Vested.
Regulation of these out-of- state con-
Germs will be placed in the hands OF
the secretary of state and the essen
tial, safeguards will be:
CD A provision that any investor,
after making as many as six regular
monthly payments may demand his
money back and get it; and
q A provision making it mandatory
that. out -of-state investment cora
panies shall secure the funds of it's
investors by depositing within the
State not less than 80 per cent of the
total amount invested by residents OF
the State of North Carolina.
There were also provisions to pro
hibit any penalties on investors who
do not make their payments regular
ly, and requiring the filing of volunl-
inous and complete information about
the company with the secretary OF
state.
Provisions of Bill
The act also levies two and one
half per cent license fee on all install
ment receipts from North Carolina.
The preamble of the bill in prepare
ton recites:
Whereas, from March 8, 1926, to
January 81, 1929, residents of North
Carolina have deposited with com
panies not located in North Caroli..a
an amount in excess of five milior
dollars An installment investment
contracts and part payment securities
of a. similar nature, and
Whereas, under installment invest
ment certificates and contracts sold
in North Carolina there is invested
an additional one million dollars EACH
year with companies not located in
North Carolina, and
"Whar0QC tho mi Nf
under contracts sold in North Caro-
lima owe to depositors within the
State an amount in excess of one NIL
lion dollars, and
Whereas, there has been registered
for qualification and sale in North
Carolina since March 8, 1926, an a.
mount in excess of fortyfive million
dollars of installment investment GER
tficates or contracts, and
whereas, no act or official agency
in North Carolina regulates or super
vises the issue or sales of such in
stallment investment contracts in the
same manner as savings banks, life
insurance companies and building and
loan officials, and
Whereas, the protection of the
public to the extent of five million
dollars of invested funds in such COM
panies is necessary"
The enactment of the bill follows
with its principles as already out
lined.
The measures authors for intro
duction purposes have not yet been
selected, but it is expected that about
half a dozen will sign as Senate spon-
sors. wiMaM