St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-07-29
HOW THEY WORK.
A Minneapolis Gentleman's NO
ton of English Syndicates.

ton of English Syndicates.
A gentleman well known in Mime
apolis business circles, who has had
little to do with one Of the English
syndicates that tried to buy up Mime
apolis manufacturing concerns, offers an
explanation of what he called the craze
for investing in foreign securities which
affects England and London just now.
at is" he said. "a scheme, d plan of
operation on a wide but not very solid
basis: for, in fact, it has no bottom or
stability. | was asked by the agents OF
one syndicate to get an option on The
Orth brewery. | received letters first
in which was offered $4,000 to get an
option on certain terms, but paid
little attention to them. Then an
agent came on recommended and
introduced by Eastern friends of mine,
and did little work to aid him, and
thus [ came to learn the plan OF opera
lions. 1t is Just this: There are COM
blnations of Englishmen in London,
with brains and influence, who want to
make money rapidly and who have
adopted this syndicate scheme to ac-
complish 1t. They send over agents
and get an option on American proper.
ties like the Detroit breWerieS or the
MINNEAPOLIS mills. They get access to
the books and learn the profits of the
business for years back. These are
tabulated by their experts and brill
liant statement LAID before the London
people, who have craze for this kind
of Investment. The statement shows a
profit of so many per cent a year; a
stock company is formed and
the London public is invited up
to invest in shares of the stock.
They rush up just as the French people
went down into their stockings and
bought Panama canal shares. If the
thing takes the option is closed, and it
is never closed unless public interest in
the investment is promising. Now the
long-headed men in the combination
bond the property for about what 1T is
worth. AT least they get all they can
at as low rate of interest as possible.
A liberal slice goes to the syndicate,
their attorneys and agents. And what
remains for the stockholders? Simply
an equity in the property which will
soon be wiped out. 1t doesn't seem to
me natural or permanent KIND OF III
vestment, because after the debentures
are floated there is nobody left to take
personal interest in the property. 1t is
CIdZS luQU w III OOOii NJ hietNS oPPethS v
when a few hundred good people
of moderate means, who have their five
or ten pounds in stock. find that their
five OF ten pounds is gone.
1.-The Pillsburys, l think, went into)
the thing reluctantly and after they went
in would willingly have drawn out.
Charles A. Pillsbury might have been
caught by the idea of being the gen.
eral manager of such an immense con-
Germ, but the governor was opposed to
it and would never have consented but
for that priests Decoration DAY speech,
which was communistic attack on
employers. That settled him. and he
thought for a while that if that
were all the credit or honor there
was in being an employer he
would get out. But it would
have been a mistake. The Pillsburys
all have sons. What better thing could
they do, then, to hand down to them the
Pillsbury system of mills and the Pills
bury name? lis an honorable business
and a profitable one, and should be
perpetuated in the coming generations
of PillSburVS"