Northwest Arkansas Times from Fayetteville, Arkansas on September 8, 1974 · Page 3
Get access to this page with a Free Trial
Click to view larger version
September 8, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 3

Publication:
Location:
Fayetteville, Arkansas
Issue Date:
Sunday, September 8, 1974
Page:
Page 3
Cancel
Start Free Trial

Page 3 article text (OCR)

Said Number One Consumer Fraud In U.S. Northwest Arkansas TIMES, Sunday, Sept. 8, 1974 FAYETTEVILLE. ARKANSAS 3A Pyramid SeSBmg Schemes Delude Many By FREDERICK L. BERN'S · TIMES Washington Bureau r ' WASEflNGTON - "Would you : be interested in earning up. to .'''$500 a month working p a r t- - time?" the unidentified caller Basked. "Sure," replied Mrs. Smith (a ° ficlicious name). "Then come to the local rno- ' tel tonight," the caller told her. · "You'll learn about the opportunity of a lifetime." So she went. About 100 people '.'· were there: jobless veterans, widows, young couples and ;' other housewives, all listening to a smooth-talking promoter promising to triple their income : in a year if they joined his multi-million dollar corporation. '· They could earn more than 5 $40,000 annually, he promis- ; ed.by investing in a soap and ' dry cleaning products company for $2,995, recruiting others to The next day, Mrs. Smith borrowed $3,000 from a f i n a n c e company to buy her "distributorship." Then she paid $250 to attend a sales school. For weeks slie attempted in vain to s i g n up salespeople Then, oul of desperation, she tried to sell the $3,000 inventory door-to-door herself. After six months, she. had earned less than $;100. Her basement was packed with products -- and she owed the finance company $3,000. Mrs. Smith, like thousands before her, was the victim of a practice she probably never heard of -- pyramid selling. Her sell the products the commissions. and keeping story, recounted Sen. Walter F. recently Mondalc, Minn., at a Senate committee hearing, describes what has become a major fraud problem. RIGHT TO RECRUIT Pyramid selling, a technique in which a company provides a prospective salesman w i t h products but is mainly interest- ed in selling "the right to recruit," is what Mondale considers "the number one consumer fraud problem in the United States." The Senate has passed Mandale's pyramid sales bill, a measure that sets a maximum penalty of five years in prison and a $10,000 fine for persons who "sell participation." In pyramid selling, a person Is compensated for inducing one or more persons to join the plan .The new recruits then become eligible for the same kind of compensation when they bring still others into the plan. Wbat Mondale calls the "essential vice" of pyramid selling is that there are not enough people to keep the chain in motion, and to result in a profit for an individual who must recruit to make money. If Mrs. Smith had recruited five persons, and each of them recruited five, the number of "recruiters" would exceed the U.S. population by tho time tho pyramid reached the thirteenth level. The Security and Exchange Commission (SEC) has estimated that pyramid sales enterprises have defrauded the p u n . lie of at least $300 million. But congressional staff aides say the figure is far too conservative and note that the SEC has with "Holiday Magic, Inc., taking $250 million from 80.000 investors. Such pyramid schemes ,,,, "Dare to be Great" and "Kos- cot" 'have operated similarly --offering products ranging from cosmetics to personality im- ing the sale of rights." provement courses and stress"recruiting RIGHTS' PEDDLED These "rights" are frequently peddled at rallies at which glib promoters convince flieir audience that buying a "distributorship" and convincing others to do likewise will bring them great wealth. The rallies, according to a report compiled by the Senate Commerce Committee, take on the air of a religious revival meeting and include "a crescendo of testimonials, singing, crying and exhortations" that lead to "group hysteria which extinguishes the prospects' normal inhibitions and powers to reason." Variations of t h e pyramid scheme have developed. One requires a person to buy 20 cases of a company's product at a "wholesale" price of $4,000. The person then earns the right to recruit others, and get a !i5 es have legal action pending a- per cent profit on the $4,000 purchase which each new re. cruit must make to enter the plan. Legal action against the largest pyramid sales firms has been painfully slow. The operations of one of the biggest firms, headed by Glenn Turner, have finally been dismantled by a settlement in which 75,000 claimants will d i v i d e about S3 m i l l i o n . The Federal T r a d e Commission (FTC) has been M a g i c after group the Holiday for three years, b u t n o t h i n g h a s been resolved. At least six stat- gainst the organization. About 20 states have laws referring to pyramid sales fraud, but, as the Commerce Committee noted during a probe of the problem, "The pyramid promoter is still able to move into other states that have not yet acted and take substantial sums of unwary investors there." Mondale's bill, which makes pyramid sales operators liable for three times the original distributorship charge as well as court costs and attorney's fees, has been endorsed by the SEC, the FTC and the Association of State Attorneys General. Supporters a r e pushing f o r House action on the bill before this session of Congress ends. The'sooner the bill becomes law, the better, according to the vice president of Direct Selling Association, a trade organization of the 100 largest door-to- door s a l e s companies. The Association also supports the Mondalc bill. "The people trained in those larger pyramid scheme companies could easily start their own schemes." Neil H. Often warned in testimony before the Commerce C o m m i t t e e . "There's a potential for even greater abuse." Vice President For Agriculture John White To Retire From UA Dr. John W. White, vice pre- i sident f o r agriculture at the University of Arkansas since ,1959, is requesting early retirement, Dr. Charles E. Bishop, ,UA president, has announced. Dr. White is relinquishing his full-time duties but will remain available for part-lime duties ; until his successor is named. He has headed all the Univer- . sity's activities in agriculture, ; including the teaching program at the Fayetteville campus, the Agricultural Experiment Station · and its Branch and Substations throughout the state, and the Cooperative Extension Service, ' which is headquartered in Little -:Rock and reaches into every county. Dr.. Bishop said a search committee, headed by Dr. Charles W. Oxford, executive vice president, will he named to make recommendations for Dr. White's successor. Bishop p r a i s e d White's "superior achievements" in Arkansas agriculture. "The work he has done during his long and distinguished career at the University of Arkansas has contributed greatly to the unpre- cendented progress that agriculture fn the state has made during this same period of time," the new UA president s a i d . "His professional reputation is exemplary, not only in Arkansas hut throughout 'the nation." : '·-*··-·'· "·* ·:! Dr. White is ending 39 years on the University of Arkansas faculty or staff. He joined the institution immediately after receiving his bachelor .of science degree from the UA in 1935. He earlier had attended Arkansas A and M College. His first job with the University was a field agent for the Department of Agricultural Economics and Rural Sociology. He then was an assistant county agent with the Agricultural Extension Service for almost two years in Lawrence' and Craighead Counties. From 1938 until -1940, he served as cooperative research supervisor at the Cotton Branch Experiment Station in Marianna. Meanwhile, he had earned a master's degree from the University of Minnesota Department of Agriculture Eco- from the University of Minnesota in 1943. Dr. White is a native Hamburg. He was reared on an Ashley County cotton farm, attended rural school in Ashley County through the 10th grade and graduated from Hamburg High. He was promoted to assistant professor in 1942 and was named extension economist in marketing for the Agricultural Extension Service. In this capacity, he worked throughout the state on marketing problems. In April 1844, he was appointed assistant director in charge of the Rice Branch Exeriment Station at Stuttgart, where he worked with all phases of the University's research program on rice. Dr. White returned to the Fayetteville campus in 1947 as professor and head of the Department of Agricultural Economies and Rural Sociology, where he taught courses in marketing, farm management and policy, and conducted research on land problems, labor problems, farm management and marketing. In 1953, he became associate director in charge of the Agricultural Experiment Station, which position he held until assuming the vice presidency. In 1957, Dr. White was named "Man ot the Year,in' Arkansas Agriculture" by Progressive Farmer 'magazine arid tha same year received the Distiri f uished 4-H Club Alumn ward. Dr. White was married in 1939 to the former Trannye Mae Odqm of Marianna. They ,no children. have DR. JOHN WHITE .to retire from UA position Underground Cave Found By Archeologists Hurt In Accident John Patrick Porter, 18, of Little Rock is in good condition at Washington Regional Medical Center after being injured in a motorcycle accident on the parking lot of Maple Manor Apartments, Hwy. 71 bypass and Wedington Drive, early Saturday morning. Porter told Fayetteville police that he was turning a corner on the parking lot when, his motorcycle went out from under him. MEXICO OITY (AP) -- Mexican archeologists have found a cave underneath the Pyramid of the Sun used by the Teo- tihuacans about 300 A.D. which may soon shed more light about the origin and customs of the mysterious race, officials have reported. Thfi cave, running east to west and about 328 feet long and about 13 feet high, is 16 feet underground exactly below the center of the 820-square-foot base of the Pyramid of the Sun in the Teotihuacan archeological center 30 miles northeast of Mexico City. It was found by a team from the Mexican National Institute of Anthropology and History two years ago. But it has not been studied completely and the annoucement of the find was not publicly made, Dr. Jorge Acosta, institute pre-His panic department chief director, told the Associated Press in an interview. He said a great quantity of pre-classic period broken pottery and ceramics were found in the cave. No sorting of the pottery has yet been made. "But the study of the cave and the pottery may help uf know more about the mysterious Tcotihuacans whom we know very little of indeed, Acosta said. So little is known of the people who Inhabited the region that the original name of the place remains a mystery. Teo- tihuacan is an Aztec dialect name meaning "place of the The ancient Aztecs, who arrived in Mexico about the 9th century A.D., already found Teotihuacan deserted but considered the city sacred. ORIGIN UNKNOWN Acosta says that the origin of e Teotihuacan race is totally the be Tapes Found NEW YORK (AP) -- Som 1,000 tapes made by Jimi Hen drix have been discovered an five albums will come out o Warner Brothers. The first. October, was cut with guitans ·John McLaughlin. There are excursions iriti jazz and blues among them Alan Douglas, who produce the sessions, is putting the a bums together. He also has re ceived word from Warne Brothers that it will withdra\ the three albums it put 01 ·fter Hendrix died in 1970 an rerelease the best materif Jjom them on one album, th« original plan had been. nknown. The enigma of st , people may never of the lack of codices about lived because ocuments or em, he said. "They came and disappeared ithout leaving much trace," e said. But the discovery of le cave, he added, may help hed .new light on the mys- Tious culture which built the lassive soil and clay pyramids f the central nlulr.au. Besides the 170-feet-high yramid of the Sun, the- TCP- HANES ALIVE BEAUTIFUL SUPP' This week only September 9 to 16 only Save 1.00 on Hanes ALIVE Support Pantyhose. Save 70c on Stockings. Style 809--Reinforced heel toe . -Al Sheer -.*,..,,,,-,.,, Reg. ..5.95 ,.5.95 --Support Stockings .,,,.or.*.---TM.,.*.,.,.,-.·.3.95 SALE 4.95 4.95 3.25 Colors: Barely There Town Taupe Gentlebrovm Barely Black STOCK UP Buy Now South Pacific Driftwood White May fair NOW AND SAVE for Future Gifts Boston Store Shop Northwest Arkansas Plaza 10 AM to 9 PM DAILY Use Your Boston Char,e Master Charge or BankAmericard tihuacans also erected a smaller Pyramid of the Moon. However, no cave has been found underneath the other pyramid. The discovery of the sun cave was accidental after a heavy downpour which uncovered the opening of the tunnel-like cave, Acosta said. On entering, the archeologists saw the cave walls smoothed out with dark clay but there were no engravings or decorations on the walls. On the floor and in a chamber-like area at the end of the cave they found broken pottery. Almost at the end of the cave, Acosta said, the archeologists found three pathways opening up like a three-leaf clover structure. "We believe the cave may have been a ritual chamber," Acosta said. The institute plans to issue a complete report on the find in a few months, he said. THE NEW DIRECTIONS BEAUTY KIT... "WTiy can't I HEAR?" Thfc man's bearing is fading. He is beginning to enclose himself in a lonely Sttte world, unconsciously shotting himself off from family, friends and social Sife. Becoming "deaf seems to him like the end of the worH. The worst part is that it may take him a king tine to find out that be can be helped. Hearing loss is America's most common physical impairment, affecting mSions of people. Happily, mostof them haw found that a hearing problem need not be a handicap. We have been bdping people return to the wonderM world of sound for more than 30 years. If you or a friend or A, retatiw has a hearing problem, chances / anewecan help. You can find out with- oat obligation. Send the coupon for i. Ml information on the Maco , Method of Better Hearing. __ I SM.I Morrnrtfei · See Our Display At the Washington County Fair \ A 19,90 VALUE . . . .Yours free with any purchase of 6.00 or more from our 'Ultima' II collection of makeup, fragrance, and skincare. Limited one kit per customer HERE'S WHAT YOU GET: 1. Translucent Wrinkle Creme. Intensely concentrated so it works on dry skin lines. Yet amazingly sheer and non- greasy so you'll love wearing it to bed. 2. Luscious Lip Conditioner. Just what your lips have been craving. Silkens even the driest mouUi while it protects against wind, sun, indoor heat. Sheer and glossy. 3. Eye Creme Concentrate. Sleep with it every night and see dry lines, pouchiness, crepe-y skin--all the distressing signs under your eyes--all but disappear. 4. Transparent Creme Gel Makeup (Tawny Beige). The sheer makeup that goes beyond naturalness. It makes you look radiant with sun-warmed color. 5. Luscious L»sh Makeup (Soft Black). Exclusive creme formula gives fuller lashes without layers of mascara. Yet it's easy to take off. .Ultima Eau de Parfum Spray 2 oz 6.50 . .Ciara Corvcentretad cologne spray 80 ilrength, Th oz ''00 .Beautiful Nutrient Makeup Aurora Beige --Bronze Umber -- Natural Beige -Tuscan Beige .Firming Peel-Off Mos'que · .Milky Fociala Bath 7.7 oz .C.H.K. Moisture Concentrate 3 oz 10.00 Store II Boston NORTHWEST ARKANSAS PLAZA Use Your Boston Store Credit Card, Master Charge or BankAmericard

Get full access with a Free Trial

Start Free Trial

What members have found on this page