The Montgomery advertiser., 1902-03-02
BUSINESS HAS PR0sPERED
Largest of Kind in the United
 States. j.
Stock Will bs sooo, 900, s5o,ooo of Which VIII bs Prsfsrrsd-shares
 of 41oo Each VIII be Sold to
 Citissns of Alabama Only.

Twelve years ago Mfr. B. E. Forbes came to Alabama and established a business for the sale of Pianos. Organs. Musical In- struments, Sheet Music. Sewing Machines. etc. By close attention to business, up- right methods and conscientious treat ment of his patrons. business prospered from the start. and from a very small beginning. his has grown into one of the largest commercial interests in the State of Alabama.
 Branch houses were opened in Birming-
 ham. Anniston and Mobile. Ala. and Rome. Ga. Men of ability and experi- snce were placed in charge of these branch houses. and under the supervision of MT. Forbes. the business in these cities, like that in Montgomery. grew and prospered. Today MT. Forbes success is the talk of Alabama, and 1t Is safe to assume that in a few, more years his business will be one of the largest of its kind in the United States.
 To conduct business of this character, where goods are sold on. long time. large amount of capital is required. and in order to be in a position to further increase his business, MT. Forbes decided to incorporate 1t. This step was taken a short time ago, and in future the busi- ness will be known as the E. ID. Forbes Piano Co.,, with capital stock of $20O, 900. Qse, 900 common and $50,000 preferred. The entire issue of common stock,. Q5o,000.
 was subscribed for and is owned by MT. Forbes, and his business associates. J. q. Holcombe and A. o. Mallory. who are the officers of the new company. MT.
 Forbes being President, MT. Holcombe vics-President, and A. O. Mallory Sec retary and Treasurer. These also com pose the Board of Directors.
 As soon as the incorporation was per- fected, Mir. Forbes received officers from
 a number of the large musical instrument
 manufacturers throughout the country to take stock in his company, but not being
 willing to have foreign capital in his business. these offers were declined. his idea being that it would be for the best
 interest of the company to have the pre-
 ferred stock held by Alabamians. At recent meeting of the Board of Directors,
 they decided to offer to the citizens of
 Alabama an opportunity of becoming stockholders in their company. and with this end in view, the s50.0o0 of preferred stock is offered for sale. This stock is in shares of $1o000 par value. each, bear ing per cent interest, payable annually, and Is practically the same as first mort gage bond on the property of the com pany, as the dividends are absolutely guaranteed to be paid each year regard less of the amount of earnings the com pany may make.
 MT. Forbes states that 1t is his pref erence to sell the stock in small blocks. as he believes 1t would be to the interest of his company to have a large number of stockholders. preferably one in each town in the State. In this way, every stoclxholder would feel a personal inter- est in the success of the business, and would naturally do everything in his or her power to throw business in the way of the company. It would. therefore. seem that this preferred stock offers to investors an unusual opportunity. and one that Is as safe as Government bonds and solid as the rock if Gibraltar. Un- der the bylaws of the new company, the officers would have to lose every dollar they had invested in the business, before the holders of the preferred stock could lose a cent. as the dividends on the pre- ferred stock have to be paid before the holders of the common stock can receive a dividend.
 It is seldom that the public has an op- portunity of buying preferred stock in a business that has been in existence for so short time and on paying basis from the beginning Mir. Forbes stated last night to a reporter of The Advertiser that his business had paid a handsome profit from the start. and that the net earnings for last year were 2 per cent. on the capital invested. His firm Is today recognized as doing the largest piano, organ and music business of any similar concern in the State. It does not have to sell it's stock to carry on it's business, but Mir. Forbes believes that on a co-opera- tive plan. greater success can be accom- l plished; hence his decision to incorporate his business. and his determination to sell a small portion of the capital stock of the company.
 To make the investment an inducement to these who have few hundred dollars saved up. MT. Forbes Is willing to obli- | gate himself to buy back any of the pre- ferred stock that any stockholder may have on January 18th. of any year, pay ing therefor the full face value of s10o.0o per share together with accrued interest. In this way. 1t makes the investment to any one who may have a few | hundred dollars to invest
 MT. Forhes gives as references to the | financial responsibility of his company the Merchants and Planters National Bank of Montgomery, and Messrs Hollo- | way & Holloway. Attorneys-at-Law. l Ala. Either of the officers | of the new company will be pleased to | consult or correspond with any one in- | terested in making a safe and profitable | The preferred stock of the company is as safe an investment as | Montgomery real estate. and will unuues- | pay a larger dividend. In addi- | tion to this fact. the stockholders will not | have to pay taxes on their holdings, as | all taxes are paid out of the gross earn | ings of the company.
 MT Forbes, the President of the com pany, has just issued a circular letter, | fully outlining his plans and copies of | this letter have been widely circulated | throughout the State of Alabama The | following is a copy:
 "The writer has been in the music business for about twelve years. alone l You have doubtless heard of his success, | which is acknowledged to be greater | than that of any other music dealer in | the South He recently incorporated his | business into a stock company with the | intention of running in on a cooperative 1 plan, giving his salesmen, managers and |