In the case in which I ran into trouble on my loan I was warned in advance by another dealer or by a supplier who told me to be careful. This advice and these warnings should be enough to scare you off. If there is even a question about the man's integrity, drop the whole matter. Anyone who wants a loan must supply a balance sheet and profit and loss statement for your examination. This statement should be prepared by a reputable accountant, and if the accounting firm is not known, inquiries about its reputation should be made in the same way that inquiries about the borrower are made. This is the great value to a statement prepared by a reputable accounting firm such as Arthur Anderson, Leidesdorf or Ernst and Ernst.

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The Investment Company Act enables the Commission to sue in the courts to prevent gross abuse of trust and gross misconduct and grossly unfair plans of reorganization of investment companies. It makes embezzlement of investment company funds a federal offense, and prevents investment bankers and other affiliated persons from using their investment companies to assist them in underwriting activities. The act also provides that an investment company may maintain its portfolio securities and other property in its own custody or in the custody of brokers, subject, however, to compliance with the Commission's regulations. Otherwise, portfolio securities must be maintained in the custody of a bank, which is the usual practice. The act also provides for bonding of employees having access to the company's assets.

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60 put in in premiums, $403.94 was collected”a profit of $126.34 over 20 years, or $6.31 per year. The $277.

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Opening an Account If you have shopped around a bit and satisfied yourself that one brokerage house is both reputable and pleasant to do business with, you are ready to open an account. This costs you nothing. It is rather like opening a charge account at a department store. The broker simply needs to know who you are and what your credit is, so that he may be sure you can pay for the goods you order. And promptly. Unlike the department store, the brokerage will not send you a monthly bill.

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