European Stars and Stripes (Newspaper) - June 20, 1980, Darmstadt, Hesse                                Friday Juno 20, 1980 the stars and stripes Page 19 Washington warning commodity Markel now heavy in frauds anyone.  for a Chance to Cash in on Quick profits in the commodity Market should get the facts before  s the word from Esther Peterson director of the . Office of consumer affairs. Though her Ai vice is directed mainly to people within the ., americans overseas will find it applies a Hyrc they arc . Just recently for example. German authorities ordered an investment firm dealing in commodities. Belcher management Consul urls Bic. To Slop doing business. The firm which dealt mainly with americans and had offices in Heidelberg was not registered As it should have been and its business transactions arc now being closely investigated by the City proc Csutor s office in Wuerzburg. Being sure that a firm is properly registered where it is doing business is an important consideration according to Peterson who pointed out thai there is a new and rising tide of fraud in the Field of off Exchange commodity in  to Register a firm must prote its stability and fulfil requirements thai protect he investor. Those thinking about dealing with a firm doing Busi Ness in the . Should Contact the commodity futures trading commission a Etc to see if it is registered. The address 2033 k. Is. . 20581, Washington . Overseas the problem becomes More complicated. Capt. John Krump Legal adviser to the Tri service armed forces disciplinary control Board who said he considers such investment very risky notes that he does t have the Means to investigate such companies. Sometimes such firms he said claim to be registered in the . While in other cases they claim to be following european Law. Krump. Who can be reached at the Usa eur Legal assistance office in Heidelberg Heidelberg military 8213 or 7340will however give whatever assistance possible in checking out such firms. Those operating in Germany must be registered with the Burnacs Ausich Sami fuer Das Kredi tween a Federal watchdog Agency in West Berlin. As to that danger of fraud Peterson said that the a Etc which has jurisdiction Over most is. Commodity transactions including futures contracts dealing in Silver Gold Oil and Swiss francs to name a few is extremely concerned and has asked her to spread the word. Following is a typical example of what is happening All Over the ., according to Peterson. Late last year she said a Man who lives in the Midwest received a Telephone Call from a woman who said she represented a firm dealing in Silver a popular commodity at the time. After a most persuasive sales talk the Man decided to buy $1,800 Worth of Silver. The contract was $17.50 per ounce for 1.000 ounces of Silver and would expire february 15, 1980. On that Day the Man called the firm and was told the person who could authorize payment was sick and would return the next Day. After Many Calls and no response the Man wrote to the Fri detailing his grievances. In the meantime he was told the phone was out of order and finally disconnected.  the firm is in bankruptcy the Man has lost his Money and stands a Good Chance of never seeing it  to keep something like this from happening the a Etc said you should be sure of what risks arc involved and most important what you stand to lose. Here Are some other Points Peterson said that the a Etc wants you to consider before you invest. Be especially suspicious of any unsolicited Long Dis Tance Calls you May get from a salesperson you Don l know representing some company you have never heard of. Some arc legitimate others arc not a Etc can Tell you if a firm or employee is registered or if there Are any prior or pending Legal actions against the firm or individual. A Etc cannot however make any recommendations or vouch for the firm s or individual s reliability. Develop a prove in to me attitude and resist any pressure to make hurried uninformed decisions. Ask a Tot of questions such As where the seller got your name and if the company is currently registered Wilh a Etc or any other regulatory Agency. Check Wilh Hal Agency Ihnn to see if this is indeed the Case. Also ask what your Loial Cost will be and How much is Lakin Oul in commissions fees discounts and other charges. Most of All ask whal you have to  a legitimate commodities broker according to Peter son will give you a risk disclosure statement. Why is an increase Anli Cipale in commodity inc so Mcnol fraud Pelc son said it s because people arc so eager to Pul i hair Money some place where in won t be eroded by inflation. In used to be Hal buying a Home was the Best hedge against inflation thai no Mailer whal happened there would always be the House she explained. That is still Irue but the Cost of real a slate and High inter Cal Rales Puls Home buying Oul of reach for Many Consumers. So consumer watch the ones with a Little Money to invest usually from is. 000 to $50,000 Are looking desperately for other ways to keep their savings from eroding More than they already  wonder thousands of Consumers wary of spiralling inflation and the state of the Economy Are victimized by unscrupulous persons who prey upon their Hopes and fears. Often they arc smooth and fast talkers who use sophisticated jargon such As equity broker s fees and limited risk Forward accounts to lend respectability to sales pitches. And there s always an air of urgency to the sales pitch whether it is in the form of shiny promotional material filled with exclamation Marks or a Telephone Call demanding Quick  she said. No recession yet for food prices  in grocery prices  prices went up 2.4 percent in Mayas compared to april. The Basket of groceries that Cost $106.53 in october of 1978, when the troop support Agency Tsa began checking prices on a 92-Ilcm Market Basket had increased to s111.47 by october 1979. For May it was up to $123.32 a 12 percent increase Over May of last year. Here arc How some of those Price trends Are going compared Wilh i Host prices of a year ago october. You la note that sugar is again on an upward spiral. In october of 1979 it was running $1.39 for five pounds. In May it was up to $2.64. A 129 percent Price increase. Produce also was up oranges 36 percent apples 27 percent cauliflower. 38 percent iceberg lettuce. 38 per cent potatoes. 75 percent. Frozen Orange juice however was Down 16 percent and so were raisins Down 39 percent. Also Down in Price were Bacon 35 percent pork Sau Sage. 12 percent canned Ham 3 percent. Beef liver was up 47 percent though and Coffee up 32 percent. Cafes bread products were up from about ii to 15 percent. Large eggs had increased 15 percent a dozen. Hough the . Economy is reportedly Cooling off. Well into a recession the trend in t showing food Labelling changes under the question Aslo what should go on the Label of a can of food is turning Inlo a Small sized War Back in .thirly-two food Industry Trade associations Are fighting Loiry and prevent the proposed food la Beling changes from being Pul into  Esther Peterson president s Carter s special assistant for consumer affairs and a coalition of 68 con Sumer labor professional and Public interest organizations icy have written to the chairman of the House appropriations committee asking Hal the new Labelling not be made a requirement for the Industry. To keep the food and drug  Fra and the us. Department of agriculture us a from doing so by Are is King that no of he appropriated for fiscal year 1�81 to pays a Row of Loose who would be involved in making the food Labelling rules. Specifically the Trade associations said Hal the Label ing changes factually hese changes Are  and us a positions nol yet proposed regulations were being made piecemeal Wilhour adequate determination of i hair economic Impact. The associations went on to say that the Labelling changes would be extremely inflationary and thai the committee should give consideration to directing that Fra and us a nol add to the current inflationary spiral by initiating consumer food Labelling changes pre  the Trade associations also asked that More consumer research be done on what Consumers wanted in la Way of Labelling information and that the associations were prepared to constructively work with the agencies to Ward improving and providing informative food Label ing they pointed out Hal Uherc had t been enough re search completed to determine the Type of information to be presented and the format to be used. Finally the associations said Markel pretesting and evaluation of any Lake changes should be done before any regulation Kec aate final. In response to the Trade associations letter Esther Peterson on May i wrote to the appropriations commit tee chairman urging the committee not to comply with the associations req Ucol. She said the proposed changes have Broad based con Sumer and Industry support and Hal the positive response throughout the country to the food Labelling proceeding demonstrates Hal Consumers truly want to know the specific Content of the food they Are buying. They need this information in order to make Intelli gent purchasing decisions and to avoid health problems related to ingredients widely used in processed  Peterson also mentioned the risk factors in High fal cholesterol and sodium intake and noted that the amount of sugar in processed foods continues to be a mystery on food labels