Show TON PROMOTERS IAN USE CHARITY TO DECOY TRUSTFUL contributors V investigations of various schemes for defrauding public out of money disclosed by bankers association many kinds of fake industrial promo I 1 eions wed used as bait i by W WR R MOREHOUSE public relations commission american bankers banker association MILLIONS of dollars raised under the disguise of charity go to line the pockets of promoters ticket sales on raffles are commonly used and while the loss to any one person who buys a ticket is small the aggregate loss for the T united states runs into milli ont orm of dollars ol 01 usually the promoters of these schemes first 4 make a contract with some charitable institution to conduct a campaign for funds on behalf of the institution they are to run the campaign in the name of the institution and share the proceeds the whole scheme is is often one of deception to those who have been led to believe that their contributions go practically per cent to charity the foi following lowing case we investigated should prove illuminating A number of promoters recently contracted with a charitable institution td put on a campaign to raise funds by the raffle of a new automobile so far as the public could 5 w tell from the banners used in displaying the automobile the full amount of the sale price v R mORE morehouse HOUBE of the tickets went to the institution there was 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 days a new automobile mounted on oa a truck track was driven up and down the streets with banners telling about the drive for or funds tor for the charitable institution one day the truck would go by displaying one of the popular makes of automobiles A tew few days later it would parade by displaying some other popular make periodically tho the truck would pull into the curb where it would park tor for several hours while the promoters pleaded with passersby passers by to take tickets on the raffle and thereby help a deserving charitable institution to meet its bills thousands touched thousands of people touched by the appeal tor for help bought tickets the total sale running into the thousands of dollars contrary to the belief of the ticket buyers their contributions did aid not dot go per cent to charity instead the charitable institution received but 26 11 cents on the dollar the promoters getting 62 52 cents on tho the dollar as their net profit or twice the amount received by charity while the remainder of 22 2 cents on each dollar represented the amount charged against gross sales by the promoters as a expenses in a other words evely person who bought a 60 50 cent ticket tor for the sake of 0 charity contributed but 13 cents to charity and 37 cents to those promoting the scheme whether you give to charity or make an investment it will pay you to get the facts acts unfortunately there Is a general impression pres slon abroad that wildcat promotions are confined to oil mining and now new inventions the truth Is many stock block selling promotions are operated under the name of other industries false claims A certain group of 0 promoters promoter investigated vesti resti gated offered tor for sale stock in a proposed woolen mill in order to soil sell the stock they resorted to the use ot of misrepresentation and false claims alter after renting space on the ground floor ot of an ollice odea building fronting ng on a busy street they began their campaign orally and by printed advertisements ti extravagant claims were made for or the proposed corporation which were grossly false it was claimed that the promotion had bad the support of the chamber ol of commerce but it did not have any an such an endorsement it was claimed that the corporation had a signed con tract tor for the sale of millions of dollars worth of 0 its products product a orders enough to keep the mills running day and night tor for many years and accordingly insure its success but all that it had was a valueless take fake agreement it was waa claimed by two of the prin cipal promoters that they had had many years of 0 experience in the manu facture of 0 woolens in tact fact had bad or and financed a woolen mill which Is the largest in the united states the facts acts were these two pro pra ir the charity drive loters had bad not been connected with any mills tor for 6 over ver twenty years and they had attempted at different times time to promote mills all ot of which had tailed failed one of the promoters represented that formerly lie he was president and general manager of 0 one of 0 the largest woolen mills in canada the fact was the mill referred to had bad go gone us into bankruptcy and he had been care taker of the plant this story of misrepresentation can be duplicated in practically the whole industrial field and because our in destries dus tries are being exploited with intent to defraud it behooves every investor to investigate carefully H should consult his banker before drawing his savings out and losing them on some wildcat investment |