Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-03-17

other half until they have been reim-
bursed the amount, with fifty per cent.
added thereto, Of ali the expenses they
have iEcGr~ed In connie ion with your in
vsntloD. You can either IasnsFs your
hAii of v"''~ '7van' ION yoUrsals. or Iseve
II to them 4lIs g s1lshs of the company II
conjunction with their own half, and
they will pay over to you one-half Of the
net proceeds ofsales.
THE CONTRACT.
II this proposal il accepted by the In
ventor, contract, embracing its terms, is
drawn up and signed By him and the pres
ident of the company. The invention Is
forthwith perfected snd patent obtain ed.
The company, then, through their agents,
either make contracts for its manufsc-
ture, for O rOydlty, or sell State and county
righta IS they may dsem best. Suppose
they have been at an expense of $500 In
psrfecting the invention and getting 1t
patented. This, together with the $1,000
they have paid Tor one-fourth in
terest in the invention makes $500
the amount of outlay by the company in
connection with the invention. But ac-
cording to the agreement with the in
ventor, so per cent. upon this sum, $3.50
must be added, making S2250, which must
be reimbursed to the company before he
receives anything from tbs proceeds of
the sales Of his invention. The mem bers
will not be permitted to withdraw any Of
this sum, but IL must remsin in the COM
pany as an addition to It's cash capital, 30
that the cash capital, instead of being
diminished, Will be Increased, Ind the
company will be enabled to extend its
operations.
THE PROFITS.
The dividends Of the company must be
nom the net proceeds OF the sales OF the
inventions Now, suppose the invention
has seen sold for $50, 600 over and above
the expense of sales. From this sum must
first be deducted $1,000, which will leave
sl7, $50. Ona-half of this sum belongs to
the inventor, and the other half ($SS75) to
the company. This lstter will be the sub
jsct Of the compsny's dividends. It will
pe seen that this Is over $50 psr cent. upon
the outlay made by the Company, after
deducting the original outlay to be re-
tanned, and 30 per cent. thereon to be
added thereto, as ths cash capital of the
company. It may at first appear that this
scheme is not very favorable to tho in
ventor, but when it Is considered that he
has become sEockholder in the company
to the amount of twenty shares, without
paying in any cash, and will bs inter-
ested to that extent in sill its future opsr.
ations; 1t will be found that he will be
placed upon an equal footing with ths
original stockholders, whose cash has
snablsd him to bring out and rsalizs q
large profit from his invention. This
sbhems is not only entirely practicable,
but if managed with discretion and pru-
dence, can bs made the best paying stock
in the country.
THE MEN FOB THE BUSINESS.
All that is necessary is to organize It
properly and put upon the board of di-
reotors and various committees intelli-
gent practical men, like Barke. Randall,
Hslstead, Bruce, Drew, F1rris, Rosa and
othsrs who viii take sn interest in IFS
management, and its success Is beyond q
doubt. With such men to direct and
manage its business there is 10 necessity
for the company sver TO lose cent, snd
it should, and will make q largs profit
upon its investments in every invention
which it takes hold Of If $50 600 worth of
stock Is subscribed, payable ons-fourth
in cash and the balance in quarter annual
instsllmsnts OF fone-fourth each, it is more
lhsn probable that the stockholders will
never be called on to make second pay
ment. Their dividends, in all probsbil-
ity, will more than pay up the remainder
of their stock, In what can the capital
ist invest few thousands that will pay
him half as great a per cent. and the
sans time do more than the same amount
invested in anything else on earth to
build up MemphisP