The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1903-07-17
A Warning Word to Small
Investors,

1t may not be out of place for the
News-Democrat to sound note ol
warning to local people about the
dangers of buying stock in companies
purporting to develop lands" etc. in
foreign countries. Almost invariably
these schemes come to grief and the
small investor, who puts his hard
earned savings into Inc stock, receives
but experience in return.
The usual plan is for these COM
panies to give for some service or an
other, stock to people of standing, and
great deal of confidence is inspired
by these stockholders, who probably
have not a cent of cash invested. 1t
is doubtful If fifty cents on the dollar
can be realized upon the investment in
most of these stocks today, and in the
judgment of the News-Democrat, but
little, if anything will ever be saved
from the principal invested.
The principal owner of the News
Democrat spent a portion of two win
ters In Central America and had un-
usual opportunity Of investigating in
the paradise Of that country; namely
Costa Rica. OF the properly conduct
ed and conservative plantations in
that country there is not one that can
not be purchased at fifty per cent. of
the actual investment. Companies
there, in which small investors of this
nation have put their money as a rule,
are rank fakes. Salaries, commissions
to solicitors, who sell the stock. the
excessive price for practically waste
land, ETC., eats up the money as fast
as it is poured in. The great promoter
OF that country, Keith, the head Of
the fruit trust, when asked whether
1t was wise for strangers to invest in
plantations there, summed it up in the
single word, Don't" and it is to the
interest Of the man, who said it to en-
courage the development of the coun-
try. He stated there is an opening for
settlers who would till their own
ground. but for strangers to invest in
tho average promotion company is
rank folly.
II money cannot be made in Costa
Rica where climate, soil and the gov
ernmental conditions are so favorable,
it. means that In less favored countries
the odds are so much greater against
the small investor.
IL these Improvement companies
could enlist the patronage of the
moneyed men Of the country, men who
could afford to lose, there would be
little cause for complaint. But the
stock solicitors dodge the big fellows
and come to the fifty-dollar purchas-
ers. School teachers, clerks, day la
borers and domestics furnish the field
In which these fellows find their har-
vest. Enticed by rainbow promises
these persons convert their savings
into stock. 1t is an easy matter for a
company, receiving thousands of dol
lars in this way, to pay out few hun
dred each year from the principal in
the form of dividends" But like all
the rest of these pneumatic schemes
the puncture comes sooner or later
and then the deluded stockholders
stand about and watch the deaation.
The people Of Stark county, who are
tempted to make real estate invest
ments should put their money in Stark
farm land or town property and not
In swamps or South Amer
lean jungles. Stark county real estate
may not pay 25 per cent. year but it
is here when you want it and will ul-
timately prove more consoling to the
eye than bunch of stock in a defunct
company with no visible assets except
a couple of thousand acres of malaria
breeding marsh land, letter press and
a roll-top desk.
~ -