| Show E F j PRO OTERS USE CHARITY TO DECOY TRUSTFUL CONTRIBUTORS ID I I Investigations of Various Schemes for Defrauding Public Out of Disclosed Bankers Association Association- Money by II Many Kinds of f Fake Industrial 4 a Used as Bait t f I By W. W R. R MOREHOUSE I Public Relations Commission American B Bankers Association of dollars raised under the disguise of charity go goto MILLIONS 1 to line the pockets of promoters Ticket sales on raffles are commonly used and while the loss to any anyone one person who buys I a ticket is small the aggregate loss for the mt United States runs rubs into millions of dollars n 1 Usually the promoters of these schemes first x make a contract with some charitable f I z t i to conduct a 1 c campaign for funds on 1 a behalf of the institution They are to run 1 the campaign in the name of the thc institution i r and share the proceeds The whole scheme is often one of deception To those who A 0 1 have been led to believe that their r f 7 go practically per cent to charity f the following case we investigated should K t p prove illuminating A number of promoters recently contracted contract contract- 5 ed with a charitable institution to put on a 5 campaign to raise funds by the raffle of a aL anew L new automobile So far as the public could S tell from the banners used in displaying the automobile the full amount of the sale price w. w R. R MO MOREHOUSE of the tickets went to the institution There was vas nothing to convey any other impression Apparently it was open and above board and was being conducted by men who were contributing their time gratuitously For several daya a new mounted on a truck was driven up and down the streets with banners tolling about the drive for funds for forthe forthe the charitable Institution One day the truck would go by displaying one of the popular makes of automobiles A few days later It would parade by displaying some other popular make Periodically the truck would pull into the curb where It would park for several sev- sev several eral hours while the pr promoters pleaded plead plead- ed with passers passers-by to take tickets on the raffle rame and thereby help a deserving charitable Institution to meet Its bills Thousands Touched Thousands of people touched by the appeal for help bought tickets the total sale running into the thousands of dollars Contrary to the belief of the ticket buyers their contributions did not go per cent to charity Instead the charitable Institution received reo re- but 26 cents on the dollar the promoters getting 62 cents on the tho dollar as their net profit or twice the amount received by charity while the remainder of 22 cents on each dollar represented the amount charged against gross sales by the promoters as expenses In other words every person who bought a 60 cent ticket for the sake of charity contributed but 13 cents to charity and 37 cents to those promotIng promoting Ing the scheme Whether you give to charity or make an Investment It will pay you to get the facts Unfortunately there la is a general impression im- im abroad that wildcat promotions promo promo- are confined to oil mining and new Inventions The truth Is many stock selling promotions are operated under the name of other Industries False Claims A certain group of promoters Investigated In offered for sale stock In a proposed woolen mill In order to sell the tho stock they resorted to the use of misrepresentation and false claims After renting space on the ground floor of an office building fronting on on a busy street they began their cam cam- Orally and by printed advertisements adver adver- extravagant claims were made for the proposed corporation which were gros grossly ly false It was claimed that the promotion had the support of the Chamber of I Commerce but It did not have any such an endorsement It was claimed that the corporation had a signed contract con tract for the sale of millions of dollars dollars' worth of Its orders products enough to keep the mills running day and night for many years and accordingly Insure Its success but all that It had was a valueless fAKe agreement It was claimed by y two of the prin cipal promoters that they had had many years of experience In the manufacture manu manu- facture of woolens woolens-In fact had organized or and financed a woolen mill which Is the largest In the United States The facts were these two pro pro- iiI iiII I L LL Ll Le L l Re ReThe e The Charity Drive motors had not been connected with any mills for over twenty years and they had attempted at different times time to promote mills all of which had failed One of the promoters represented represented that formerly he was president and general manager of one of the largest woolen mills In Canada The fact was the mill referred to had gone Into bankruptcy and he had been caretaker care care- taker of the plant This story of can be duplicated in practically the whole Industrial field and because our industries In in- are being exploited with intent In in- tent to defraud It behooves every investor In in- vestor to Investigate carefully He should consult his banker before draw Ing his savings out and losing them themon on some wildcat Investment |
