St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-08-05

VI osS~A porations?
MZIlEk This question
MI/LEIk4S5 /1Iaskedo of Isaac
NfEIIESWKHNN U n e rmeyer,
NI{IyANNHaSSA the counselor
lyf5tN fNNEy in the Stewart
RX1IE tSAWSSIN binding, says
TIHia 3xAA(YyafftaL writer in the
lH3kM(\lHDV New York Her
WtIli{fH2ANi'W Id. ae was
the pioneer in getting English
capitalists to acquire large prop
erties in America, and his expe.
rlence has been of much interest
So many stories have been told WITHIN
the past year of British gold being sent
over here to buy up breweries, manufact'
urlng institutions and what not. that PEG
pie have become myStifi9d and some
what incredulous. When [ asked Mr
Untermeyer If it was true that large
English investments had been maze III
the United States. he replied that ne
knew where SIT, 100000 in cold casn nae
been placed within twelvemonth, ano
that the work of organizing new com
panies was still progressing.
II wish to correct one false lmpres'
sion, however" he said, land that Is %
the formation of trusts. The Engllsh
investors are not going into trusts at all
They are simply organizing corporations
which purchase
PROFITABLE ENTERPRISES.
There is a large amount Of capital
seeking investment in England. Its
aggregate would seem enormous to us,
and my attention was first directed 70
the fact about year ago, when
learned that the English government
had decided upon refunding the British
consuls at "a per cent:
alt struck me that the volume OF cap
ital seeking investment would be likely
to be largely augmented by the reduc-
ton in the rate of cOnSuls, and my aSSo-
ciates and myself determined to float
joint stock company for the pur'
pose of buying and running a few
American breweries. Thus the forma-
ton of the New York Brewery COM
pany followed. and has almost become
a matter of history. This enterprise
was well placed in London and was a
great go from the start, but the most as
tonishing fact about it was that stock
to the amount of s35 100000 was sub
scribed for when the capitalization was
only a mere matter of $4,000, GOO.
Nearly eight times the amount asked
for was offered, and the shares were
allotted pro rata to the bidders. "Talk
about the wealth of India; why the
amount of money accumulated IN En-
gland is
SOMETHING FABULOUS.
The people there did not wish to ac-
cept the rate of 215 per cent on consols,
aud were eager to invest savings in en-
terpIiSeS rea Sonably safe and profitable.
Yes, it opened my eyes 10 the financial
tI,a tnr yxhQn /
the rush for shares in the first English
brewing company formed for America.
The phenomenal success of this enter
prise started the story that British gold
was being rapidly exchanged for Amer
lean breWeries to be formed into a gi-
gantic trust. Of course there was moth
ing of the kind on foot, although num-
Der of separate companies have been
formed and others are under way.
These Corporations, however, are en-
tirely distinct,a nd have no connection
with each other. The same may be said
of companies formed for the purpose OF
engaging in manufacturing.
'FSince the first success, we have
launched the Frank Jones Brewing
company. which took in the Portsmouth
and Boston ale breweries of eX-COn-
gresham Jones, of New Hampshire.
This has a capital of about S6,500,0 900,
but double the amount was bid. such
was the universal desire to secure the
shares. The United States Brewing
company. with a capital OF about S, $500
600. including brewerieS in Newark, New
York and Albany and
ALL THE STOCK
was taken in day or two, which shows
the confidence felt in England in safe
and profitable joint stock concerns.
Besides, the system OF floating new
company in London is more complete
and satisfactory all around for the leglt-
innate enterprises which have merit. In
the first place, under the companies
acts and the limited liabilities acts we
must secure firm or bank or reputable
and wealthy person to engage IN the
underwriting of the proposed scheme,
and to enter into guaranty that,
after certain fixed date. all
the stock left unsubscribed for will
be taken by the guarantOr. This is to
insure the speedy organization OF the
company. In most of the corporations
formed there are issued ordinary shares,
preferred stock and mortgage deben-
lures, aud after the prospectuses are
distributed a certain day is fixed to re-
ceive applications for the stock, ETC..
and the whole amount is sometimes
taken in twenty-four hours. Of course
all these companies must have directors
in England and also in America and
committee of management in the United
States, besides the regularly
AUTHORIZED BANKERS.
solicitors, auditors, brokers and deben-
ture trustees. Who are the heavy Eng
lish capitalists who invest all this
money? There are none! The share
holders are mostly from the middle
classes of tradeSmen, and the holdings
are in small amounts. The stock is
usually issued in shares of f10 each, 80
that the artisan and wage-earner can
invest. In one of the companies | have
mentioned there are 1000 shareholders,
and an individual holding large block
Of stock is rare indeed. The principle
OF small and large investors alike in
England is pretty much the same as the
world over. They distribute their saw
ings and spare cash among a number of
enterprises, SO that a failure of one
company would not be seriously felt.
"The largest single stockholders in
these Anglo-A merican enterprises are
the vendors, the original owners. who
are allotted in most instances One-third
subscriptions for stock in our companies
came from people in London, Liverpool,
Manchester, Glasgow. and, in fact, from
every part Of the island. The prospectus
of each enterprise was advertised in the
newspaper in the ordinary way. and the
freedom with which applications for
shares came in by mail showed that
MILLIONS OF POUNDS
sterling must be actually boarded by
the great middle classes of England.
For years railway shares have been
popular for investment, but of late man.
ufacturing enterprises, breweries, tele-
phone and electric lighting companies
have gained in favor, and if any scheme
can be shown to be safe and to pay a
profit of not less than per cent yearly,
it can be foated without difficulty in
London.
my brother Samuel is now in Ireland