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Show Bl PLACED ON WORTHLESS STOCKS Warning Against Promotion Promo-tion of Questionable Companies Com-panies Is Issued. Exploitation of the public by promoters of new company organizations, whose business legitimacy is regarded as of doubtful if not totally valueless character, is placed under the positive ban of the state council of defense in a warning issued is-sued yesterday by President L. H. Farns-worth. Farns-worth. The caution against purchase of stock in these enterprises, some of which are said to be meritless, is given to the public pub-lic generally through the county councils of defense and follows the issuance of a letter of warning by T. N. Taylor of Provo, president of the Utah State Banking Bank-ing association, to members of that organization. or-ganization. Mr. Taylor having particularly designated desig-nated mining and oil enterprises in his warning letter the state council of defense de-fense names other schemes in which the financial aid of the public is sought. There is announced by the state council no wish to reflect upon legitimate enterprises, en-terprises, but emphatic disapproval is pronounced upon purchase of stock in any business whose legitimacy and dependability de-pendability are not first competently established es-tablished as producers of war necessities necessi-ties as will be noted by the following communication ; The Utah state council of defense ; deems it proper and necessary to give warning concerning the following conditions: con-ditions: Numerous and especially active campaig'is are being conducted tli rough out the country, for the sell-ine sell-ine of shares of stock in new enterprises, enter-prises, purporting to be based on immediate development of oil, mineral, min-eral, transports Uon. manufacturing, agricultural and other important industries. in-dustries. Extravagant claims are set up as to immense profits to be made by investment in these shares. 1 In many cases the promoters seek j to influence investment on patriotic grounds, by garbled extracts from j high government officials concerning ! thf need for more products, thus on-I on-I deavoring to convey the idea that ! their particular promotions have gov-! gov-! ernment sanction. In othrr casi:s in-j in-j vestors are urged to exchange Liberty bonds or thrift sta nips for sha res of j ptook or bonds in so?ne untried fn-i fn-i urc. on I he grou nd t hat such art inn will douHy si-rve the govern men t's I purposr-. Without wishing to reflect in any I way on legitimate enterprises, the I state council nevertheless feeis called upon to omnhasize its disapproval of ; these methods, and to call attention to the fact that the present is no tim" for eoinmencinLT enterprises which cannot reason a hly be expect ed to prodii'-e necessities " before the lapse of much time. Wo iMeve further fur-ther that all investment funds should be conserved for carrviiic on well established work, and for future investments in thrift s'amps and Liberty Lib-erty bonds, and that those now holding hold-ing government securities should not put them on the market wjr-n it can be avoid, d. and cerra;aly not for the purpose of speculation. |