The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1886-06-16
rLoAr,No a COMPANY.
How Euslish Financial Agents Eject the
Sale OF Questionable Stocks.

How English Financial Agents Eject the
Sale OF Questionable Stocks.
There exists in the city of London .
somewhat numerous class of men who
were formerly called promoters Of
companies, but who have Of late years
assumed the more sounding title Of
financial agents. Let us suppose that
to one of these gentlemen there occurs
the happy thought Of starting Fiji
Island tramway company. He loser
no time in putting his scheme into
shape, and the following may be taken
as fair example of how he carries out
his intentions. His first work Is to get
together board of directors, and this
supposing he has had . fair business
experience, is not so difficult as might
ut first be supposed. Together with
the financial agent another class of
men has been called into. existence by
the great extension of the joint stock
company system. The gentlemen who
help with their names the floating of
such enterprises form distinct class
of themselves, and are termed 'guinea
pigs" most probably from the fact
Of each ordinary director receiving a
guinea for each meeting he attends.
In order to be considered of any value
as director of company guinea pig
ought to have handle to his name.
A Lord, a Baronet or even Knight is
looked upon as unexcept: enable, and
may almost command his own price;
for it is not to be supposed
that . director is to work for
nothing. His value. like most
other things, varies with the quail
ity of the article. A Peer who has a
seat in the Upper House will probably
not allow his name to appear on a
prospectus under $500 to f4OO year,
besides some SO or 100 fully paid-up
shares. And he is worth the money.
The financial agents are well aware
that when Peer of the realm is Sc
cured and heads the list of directors,
the most difficult part of the task is ac-
complished. What remains will fol-
low as matter of course. The next
step is to write or to get some one to
write-for the promoter has generally
a soul above literary composition
that portion of the prospectus begin.
ming "The object for which this com.
pany is formed" and so on. This is
quickly accomplished. There are Ger.
tain gentlemen who describe them.
selves as connected with the press
whose specially is to compose these
prospectuses. The charge for such 8
document varies from two to five
guineas. and they are cheap, even al
the latter price. There is, perhaps
no kind of writing which requires more
skill than this. In the case OF the "Fij
tramway company" the writer mus
make it appear that no undertaking Sc
purely philanthropical, or so sure tt
cause so much prosperity to Fiji. ha'
ever been proposed either by Govern
ment or private enterprise; while a
the same time he must, as it were, al
J low to escape from his pen the fac
that tramway company in the FIJI
Islands is certain to be exceedingly lu
crative to all concerned. To repea
the old French joke, he must not lie il
what he writes. but he must economic
/ the truth. The prospectus written
! and the officials, such as secretary, SO
licitors, bankers, etc., chosen, an es
pensive step comes next-namely, yer.
long advertisements in the leadin,
daily ,,ers and elsewhere. But her
. also modern enterprise comes to tn
help of the promoter and sees him owe
I the difficulty, which to an outside
might seem almost insurmountable.
, Chambers Journal