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B6 - Wednesday, August 10, 1983 - North Shore News

Lav Socios of British Columbin

GET-RICH-QUICK schemes are characterized by, high-powered promo- tional sales and spell-binding descriptions of potential pro- t. ~The

most commonly pyramid scheme where the investor puts up some money for a product. He then recruits other people to buy into the scheme with the idea that he will get a percentage of their - investment. In turn, those people recruit others, with all those above them gaining a share of the investment. The problem is that usual- ly there is no product to sell or, if there is, no-one is ac-

BURRARD YARROWS Corporation completed a contract in early August, awarded by Zanen Verstoep N.V. of Holland, to fabricate and. install a 75-tonne helicopter deck on their latest trailer-suction hopper dredger “Cornelis Zanen”.

The dredger, the most ad- vanced of its type, is destin- ed for the Beaufort Sea in Canada’s northwest Arctic region. It is under a three- year contract with Esso Resources Canada Limited of C

Cornelis Zanen which was built by LH.C. of Kinderki- jk, Holland and delivered in October 1982, is 128 metres in length by 23 metres beam. It has a load capacity of 11,860 tons, a hopper capacity of 8,000 cu. metres

and 4 maximum dredging

depth of 31 metres.

The vessel is powered with.

Twin Stork Werkspoor 9 T™ 410 engines developing a

ware the ‘too good

tually selling it. Thus, only the investors at the top make any money.

In the early 1970's, B.C. passed the Pyramid Distribu- tion Act, which is designed to regulate pyramid schemes. It is very simple in that it prohibits any partici- pant in a scheme from recruiting new investors un- til he has been with the scheme for more than one year. ‘

Thus, the participant makes no profit for a year, or else the scheme must ac- tually sell a product. The ef- fect of this Act has been to put pyramid schemes out of business.

To get around the Act, several other | marketing schemes have developed. One is the multi-level

Jew contract

total of 13,800 horsepower and electrical power is a 6,000 volt A.C. frequency

controlled system. The helideck was prefabricated at Burrard

Yarrows’ Vancouver Divi- sion in readiness for in- stallation on board the vessel on her arrival in Vancouver on July 3, 1983 prior to her entering the Beaufort Sea where she will join the “Hen- drik Zanen” and “Aquarius” already operating there.

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accounting programa.

distribution scheme.

It combines an incentive to recruit other people with actual sales of products, usually consumables such as cosmetics or cleaning pro- ducts. This scheme can be a useful way to make a modest amount of money but will not make most people rich.

A second way to get around the Act is franchis- ing. There have been some spectacular successes, such as McDonald’s or Midas Mufflers.

When an investor buys a franchise, he is paying $5,000-$50,000 for the name, the goodwill attached to the name and the right to sell the products. If the name is not well-known, chances are that the investor is not buy- ing anything.

o be true ’ schemes

There are several things to watch for. If the financial statements are not audited, they should be taken to an accountant for assessment.

Investors should check the location. Often, promotors tell the investors that the locations are excellent, but they turn out to be other- wise.

Another promise usually concerns an_ exclusive market, the right to be the only one selling the product in an area. Often, others have been given exactly the same right.

' An investor should check to see where the company is incorporated, as it is more difficult to sue a company originating outside B.C. Also, an investor should get business and marketing ad-

vice to understand the the person will send $10. nature of the product and ‘What the person gets is the competition in that area. __ usually a letter telling him to Finally, an investor should place a similar ad in a news- consult a lawyer before sign- paper.

ing anything. Thus, if the scheme

A third way to get around sounds too good to be true, it the Act is the chain letter. A probably is. chain letter is the letter sent to a person where the person is to mail $1 to the top name on the list, add his name on the bottom and send the let-. ter to 10 other people. This scheme is illegal under the Criminal Code. Also, since there is no product, there is no chance of profit. The people on the bottom of the list get nothing out of it.

A fourth scheme involves ads in newspapers or magazines, which promises to send a person a secret for- mula for making money if

in tough economic times you simply have to invest your advertising dollar where you get most in return. And right now, there’s no wiser place to advertise than in the Yellow Pages.

Your ad can be seen all year round, reaching prospects with a powerful selling message just as they are about to buy.

Remember, Yellow Pages is distributed to every business and residence in British Columbia with a telephone. It’s a tremendous opportunity to tell your story, influence sales and improve your market share.

When you deal directly with a Yellow Pages representative from Dominion Directory, you get a lot of extra benefits at no extra cost. You'll be given sound, professional advice - on getting the most from your Yellow Pages ad budget, selection of different product classi- fications, and proven methods of making your business stand out amongst the competition. CALL 438-5535 (collect).

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