Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1869-03-02
How Some Joint Stock Companies are
Formed.
written for the Cincinnati Chronicle

| uaHage 10 ratsc tuo WiHu anu lt Is
more puzzling to me than ever the
pons astnoraas OF Euclid appeared to
the dullest typo that has essayed it's
solution since it was published to the
world. What can we do?"
'slf such question forces itself M
on Semmy Ford, the times are bad in
deed" responded Bill Sharp. eve
must try something new"
"There's nothing new 30 try
Everything is exhausted. | haven't
an expedient nor a resource of ly
kind left. We have attempted all
sorts of lodges engaged in magnifie
cent gift enterprises, in which every
ticket drew a valuable prize adver-
tised dollar stores, in which gold
watches worth from 500 to $500
were the principal stock in trade ];
pulled and bowed Professor Soph's
Magic Cureall, till gudgeons will bite
no more; offered The Secret of
Certain Fortune for fifty cents till
that has entirely played out ; propos-
ed to send sewing machines for $40
that are better than either Wheeler
& Wilson's or Singers, till the re
ceipts scarcely pay the advertising
bills, (Which, to be sure, is the only
expense we incur in that NATTER
and what we haven't done that hon
est men are justified in turning a
hand to, it is impossible for me to
discover"
$50 you think you have tried ev>
erything?"
Everything that a gentleman can
consistently engage in"
"But You have never formed
joint stock company"
Correct, Bill
"And it's a good spec, when prop
erly managed"
Enthusiastically. You're an angel
for the suggestion. A joint stock
company is a happy idea, and there's
money in it; but my dear boy, what
shall be the dodge? How shall it
be formed to operate La what shape
shall the little arrangement be intro
duced to the dear people p
''That will require thought. In a
matter of such magnitude we must
move with becoming elaboration"
but we can't wait you know.
We have pressing need of ready cash,
and must move at once"
"Well what say you to u Lead
Company in Kentucky, or a Coal
Company in West Virginia n
"The Lead Company, by all means.
That is more speculative. and we
can show it up ia magnificent style
in o prospectus. 1t will work to
charm, sir. We will have the ken,
lucky & Ohio Lead Company chars
tered by special act of Legislature
capital stock, S1,250,000l l know
a tract of land on the Cumberland
river, of about four thousand acres,
that can be bought for a song, and
then, as these matters are ordinarily
arranged turned over to the compa,
ny at a heavy figure. Bill, we've
struck fortune we're all right =
81 go halves, of course"
"Most assuredly. The idea is
yours; we'll work it up in partner
shin, and then divide the spols, I'll
draw up the charter and write pro-
spectus, and we'll have matters COM
fortably under way in ten days. Cad
The simple idea makes me feel like q
nabob."
In less than ten days the charter
was passed by the Legislature, ap.
proved by the Governor, and, print
ed on the same sheet with flaming
prospectus, mailed to thousands of
capitalists and business men in KenS
lucky, Ohio and Indiana. The
shares, that were nominally valued
at $50 each, were offered, 'to linn
tied amount, at so, with the assur-
ance that within six months they
would command a premium in the
market. Applications came pouring
in faster than they could be ans wered.
The office Of the company" was
crowded from morning till night by
people who, in their eagerness to in
vest, were not particular how RIDLEY
they iostled each other and it was
reported that a small man, from
Madisonville, paid q considerable boz
nus for the chance of broad-shoul-
dered individual who had elbowed his
way to the desk in spite Of all obsta-
cles, and who.only surrendered to the
sm Il man after the most earnest en-
treaty, and the payment of green-
backs Gin hand" Ford was right
when he selected the Lead Company
for q heavy business, and his manage
ment of its organization proved him
a very Napoleon OF operators"
AS this is essentially a true record,
the main interest of which centers
in its exactness, the writer has been
particular to ascertain the gross
amount of cash received for this stock,
and finds it to be S103, 700, of which
Sc 600 was paid for real estate, and
s10, 900 devoted to the working capi>
tai. The absolute control of The COM
pany was still left in the hands of it's
projectors, for they held in their own
names more than half Of its stock
and after paying incidental expenses,
they Owed cash profit of $50, 900 as
the product of a very light labor du-
ring four months Had their pro-
gramme been made on basis little
less liberal, the profit would have
been double this sum.
In this company more than one
man invested the carefully boarded
savings Of years, and only to find, at,
ter few months, that he had paid
his cash for something without value,
and intangible as dream. 1t was
the South Sea Bubble, with the scale
reduced. &.
In the past five years not less than
twenty-five joint stock companies
have been organized in Cincinnati on
no better basis than that above indi-
Gated. 1t is safe to state that many
of them were projected with no other
intention than selling out the stock at
the most it would bring and then
abandoning the enterprise. The