Show WHEN PROMOTERS USE CHARITY 1 TO DECOY TRUSTFUL CONTRIBUTORS CONTRIBUTOR r Investigations of Various ScHemes for Defrauding Out of Money Disclosed by Bankers Association Association- I Many Ki Kinds ds of Fake Industrial Promo- Promo l A bons U Used se d as B. B Bait alt rl By W. W R R. R MOREHOUSE Public Relations Commission American Bankers MILLIONS MILLIONS of dollars raised under the disguise of charity g go goto to line the pockets of promoters Ticket sales on raffles ar arl commonly used and while Q the loss to any anyone one person who buff buyA a ticket is small the aggregate loss for tn the theY Y y y t United States runs into millions of dollars rr I 71 Usually the promoters of the these se s schemes hemes fir first i make a contract with some charitable institution j t 3 to cond conduct ct a a c campaign for funds on o or j 1 behalf of the institution They are to rub rut run m the campaign in the name of the institution and nd share the proceeds The whole whore scheme e l i I r J is often one of deception To those who x t have been led to believe that their contrib contributions J I go practically per per c cent nt to charit charity y f I the following case we investigated should prove prove- illuminating fA f 1 A number of promoters recently contract contract- contracted Y ed with a charitable institution to put on a A campaign to raise funds by the raffle raille of a anew aa a new automobile So far as the public could tell from from the banners used in displaying the h i Jl 1 automobile the full amount of the sale PrIC price W w. R R R. MORE H E of the tickets went vent to the institution There was nothing to convey any other impression Apparently it was open and above board and was vas being conducted by me men mein w who were contributing i their time ne gratuitously 11 For r seve ral t da a a noro- noro t bit 1 vy w UJ Y Q a a. a Ln new H au omo e mounted on a truck was driven up and down the streets with banners telling lelling about the drive for funds fo for forthe forthe the charitable Institution One day the truck would go by displaying one of ot the popular makes males of or automobiles A few tew days later It would parade by displaying some other popular make Periodically the truck would pull into the curb where It would park for sovera soy sov era oral eral hours while the promoters pleaded plead plead- ed with passers passers-by to take lake tickets on the raffle raffie and thereby help a deserving charitable Institution to meet its Ila bills Thousands Touched Th d f 1 s o UL people touched oy uy the no appeal for tor help bought tickets the total sale running Into Inlo the thousands of ot dollars Contrary to the belief belle of oC the ticket buyers their contributions did not go per cent to charity charily Instead the charitable Institution received re reo re- re but 26 cents centa on the tho dollar the promoters getting gelling 62 cents on tho dollar as their net profit or twice the amount received by charity charily while the remainder of at 22 cents on each dollar represented the amount charged against gross sales by the promoters aa as expenses In other words every person who bought a 50 cent ticket for the sake of ot charIt charity contributed but 13 cents to charity and 37 cents to those promoting promoting promote ing the scheme Whether you give to charity or make an Investment It tt win pay you to get the facts Unfortunately there fa la a general Impression Impression Im Im- Im abroad that wildcat promotions promotions promotions promo promo- are confined to oil mining and new Inventions Tho The truth is many stock selling promotions are operated under the name of ot other allier industries F False Cl Claims A 4 certain r aln group of at promoters investigated Investigated In in- yes offered for tor sale Bale stock toc In a proposed woolen mill In order to sell the stock they resorted to the use of at misrepresentation and false falso claims claim After renting space space- on the ground floor of ot an office building fronting on a busy street they began their cam cam- Orally and by printed advertisements advert adver extravagant claims were made for tor the proposed corporation which were grossly false 1 fl 1 t s i II w t t. t V 1 It was claimed that the he had the support of the tho Chamber of o 01 Commerce but it did not have ha n such an endorsement It was claimed claimed d that tho the corporation had a Q signed co conj conk J tract for tor the sale of or millions of ot dollars 1 worth of or Its products orders products orders enough to keep leep the mills running day a and night for many years and accordingly Insure its success but all aU that It bad was a valueless fake agreement It was waa claimed by two of ot the pi prig prill cipal promoters that they had had hd many years of ot experience In fn the mani mane maDU facture of woolens woolens woolens-In In fact tact bad had or or I 1 n 1 Iii b and anu financed a Ii woolen m WI which Is tho the largest In the Unite States The T e facts were these two pr f l. l t j I i Q a B The Ch Charity Drive price II I rooters had not been connected wit Nit with j jany any mills for over twenty years ears RO as they had attempted at different times times' Um fj to promote mills all nil of ot which ha had had- j l failed One of or the tho promoters ferm represented t t that formerly ho be was president Ie and general manager of one of or the 1 I largest woolen mills In Canada Canada- Th The If fact tact was tho the mill referred to bad gore gone goren- goren s sInto inlo Into bankruptcy and he had been tar tare care taker Laker Qt t the J t This star story of or misrepresentation c rap bo be duplicated in practically fly Ilia tha Industrial field and und because our I iu 0 are helm being exploited ft with Kb i II tent to defraud It behooves every lad vestor to Investigate carefully U. U I should COD consult UIt his banker ha before drat dra draw j J JIng Ing his savings s out and in Ing themon them on some Bome wildcat investment Iu I |