Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1890-07-24
Another Humbug Company.


Press refers TO a company that has
been extensively advertised by the
Free Press and many other state pa
pers, under contracts made by Frank
Ii. Baseom Of Montpelier. Ii says
The New York Sun makes good use of three
columns of space in its Tuesdays issue in ex-
posing one of those temper cent guarantee
stock affairs that find such ready and willing
victims among thrifty New Englanders.
According TO the Sun, ''the Northwestern
Land and Coal Company which is the name
under which the new scheme sails, has paid
two dividends and guarantees to keep on
/ paying dividends regularly at the rate of ten
4 per cent yearly from the profits on compress
ed coal, manufactured on an imaginary plant
I from mines which do not exist, upon land
which the company does not own, and dispos-
I ed Of under mythical contracts with the
/ Northern Pacific Railroad company and other
! large corporations including the state Of North
Dakota. There is nothing Napoleonic about
the Northwestern Land and Coal company,
says the Sun, but this very lack of the audaei-
/ ty which captures large Investors probably
makes more successful the eompany's appeal
TO the great mass of small investors, rural cap
! italsts, women and Others who are easier
caught by cheap and nasty swindle than by
I great fraud.
The extent Of the business done by this
company is not known outside of the compa-
ny S office, though it is believed that its
| victims are numerous. Ia reference 10 the
claims made by the company President Oakes
of the Northern Railroad company makes the
/ following statement:
The facts are that this Northwestern Land
and Coal company hasn't bought single acre
of land from the Northern Pacific Railroad
company, nor, so far as we can discover, does
il own single acre in Dakota. Certainly il
cannot own 5000 acres in Hettinger county
without having bought from us, for all that
county is covered by our land grants, dividing
| the land in alternate sections between the
railroad and the government. Our lands they
have not bought, and the government lands
I can be obtained only by actual settlement.
There is no railroad anywhere near that Sec
tion, none in construction and il is news 10 me
If one is even laid out. The land is the ord-
nary land Of that part Of the country, worth
from few cents TO three dollars an acre.
There are deposits of Ignite all over that sec
ton Of Dakota but the stuff has never been
put to any practical use, except in a small way
/ for domestic consumption, and it is not taken
into account in estimating. the value Of the
land.
The original scheme seems 10 have been 10
start another New England City, in the
West, but failing in this, compressed Goals,
called "briquettes. were used bait with
more or less success 10 catch the unwary. Yer
mont is represented ON the board Of directors,
but the Sun says that il is presumed that Mr..
Frank III. Bascom Of Montpelier, the Vermont
member Of the board, was led into the thing
innocently through friendship for the prime
movers.
The Rutland Herald has this further
information
Montpelier has some % or 20 people who are
not in the happiest frame Of mind over the
I'll. tho
Land and Coal company. There are some 500
shares of the stock Of the company owned in
Montpelier, there being three holding 100
shares each. one 50 two D and the rest 10 and
~ each, the total value of stock held there
being about S440O.
| Frank H. Bascom. through whose efforts all
the stock in Montpelier and the bulk of that
in the State was sold, was called ON at his
home, where he is confined by asprained ankle
and asked what he could say of the matter.
He gave the following story Of his connection
with the company: During August. 1889, he
received two letters from w. n. Titus, the
president of the company urging him TO take
hold and help sell the stock. He did not re-
ply but when attending the Supreme Masonic
Council in New York City, Sept. 20 to ., he
there met Josiah III. Drummond, Sr., promi
nent lawyer, Mason and politician of Maine.
who had been mentioned in the letters of Mr..
Titus. Mr.. Bascom asked him about the
/ matter. lie dSStiitu luFs IDttHtunl Nitl ttc
company which was organized in his office and
of which Josiah II. Drmmond. Jr., his son
and law partner, was clerk. was legally organ
ized and that from his long acquaintance with
Mr.. Titus he knew him to be an honest man,
and that he had great faith in the enterprise,
being himself director. Mr.. Bascom, on
these assurances, when he returned TO Mont
pelier, wrote Mr.. Titus and the latter came to
Montpelier. the result being that Mr.. Bascom
became selling agent, and in the consideration
of the purchase for cash of lo0 shares of stock
for $500 he was made director at the next
meeting of the company. After he became a
director Mr.. Bascom learned that instead of
having any title TO the Dakota lands the COM
pany only held an option ON 5000 acres.
which, ON payment of one-fourth of the pur-
chase money by June !. would become positive
and that the company was relying the sale
of stock to get funds to make the payment;
and il was expected that Randall Foote. a
New York broker who had the agency at the
metropolis would be able TO sell the stock to
an English syndicate. Mr.. Bascom worked
earnestly and quite successfully until May Il,
when he was in New York City and called ON
broker Foote, expecting to find that the bulk
Of the stock was disposed of and was great
deal surprised TO learn that that gentleman had
not disposed of single share. He immedi-
ately resigned as a director of the company
and has not sold share of stock since then.
Mr.. Bascom is pretty sore over the outcome
as he is quite heavy loser. his commission on
sales being only small percentage Of his $500
paid for stock. He does not place any blame
ON Mr.. Titus saying that he considers him an
honest man and that he has conducted the at
fairs of the company in a most conservative
manner He attributes the result of the en-
terprise to an overstock Of booms which made
it inevitable that some Of them must go to the
wall and the NOrthwesterner was the one e
first succumb to the pressure through the
failure of Mr.. FOote to sell the stock. He as
serts that all he said or did in the matter Wa
in the utmost good faith and exhibits his re
ceipt for $500 paid in as an evidence Of th'
fact. He also says that had the other agent
sold as much in their territory in proportion
to their chances. as did Mr.. Titus and himself
who practically sold all the stock there wa
disposed of, the enterprise would have gon'
along all right.
The moral of all this is very plain
Be satisfied with reasonable returni
and safe investments right here in VT.
where the money win help develop the
resources of your own state and wher'
it win be under your own supervision