Arizona republican., 1904-06-15

writing, based upon safe and conserva- tive principles. Among these later companies. and standing in the very first rank, for the merit of it's plan and the strength of the security 1t offers. is the Granite Securities Co.,, of Los Angeles. California.
 In addition to furnishing q security, that is as good as anything. except q government bond and such ns but very few banks could give. its charge for underwriting is very reasonable, being just one-half as much as some of it's competitors charge.
 Its plan is, briefly, as follows: l. will issue it's contract to undeTwri;e Q $50, O09.O0 worth of sthe stock of a cor pcration. composed of reputable men, whose enterprise is of such a character. as to offer the average prospects of success. compared to other legitimate business undertakings. The ire for un- derwriting this amount (and it will not underwrite q less amounO is S250, or, one half of one per cent. This contract binds the Granite Securities Co. to is sue to the purchaser of the stock of the underwritten company. as the stock is sold. it's gold bond. guaranteeing to
 
 of the money he invests, at one of sev- eral periods, seven, ten. fifteen or twenty years. according to the propor- ton of the purchase price of the stock deposited with the underwriting com pany For instance, if the guarantee is that the money invested by the pur- chaser cf stock shall be paid back to him If he wants to surrender his stock) at the end or twenty years. then. g per cent of the purchase price of Tne stock must be paid over to the under writing company, thus leaving 61 per cent of the proceeds of the sale of stock to go into the treasury of the un- dervritteu company. to go to the de- velopnent of the enterprise it is en- gagged in. This money (the 29 per cent above named is paid by the Granite Securities Co. to the Realty Syndicate of San Francisco. one Of the largest corporations in the state of Califor- ria. with assets of nine and a half mill lion dollars. according to late special reports of Dun's and Bradstreets com mercial agencies and according to the statements of bank officials and other reliable sources of information. Upon receipt of this money the Realty Syn dicate issues to the Granite Securities company its investment certificates, promising to pay enc dollar in twenty wears. for every 39 cents so paid to it. or a like promise to pay s1 in a short CT period, for a proportionately larger payment. If money is worth per cent to the Realty Syndicate. it can afford 10 do this and it will make a fair profit on the transaction, besides.
 When the Granite Securities company receives this investment certificate from the Realty Syndicate, it deposits the same with a trust bank which is employed by it for this purpose, and this trust bank certifies to the stock purchaser that it has been so deposit ed. as collateral security, for the pay ment of the bond which the granite company has delivered to the purchas- CT Of stock This investment certificate is thus held by the trust bank until the purchaser of stock decides whether he wishes to have his money back or to hold his stock. If he elects to take his money he receives it from this invest ment certificate, which natures at the time fixed in the contract he made with the company, when he bought the stock. If, however, he is satisfied with his investment, then this money is paid the underwritten company and becomes one of it's assets. In the meantime, should the investor meet with misfor- tune and need some part of the money he has paid for stock, he can borrow so per cent of the cash value of this investment certificate, from the Gran ite Securities Co, by simply depositinG with it. as collateral security. it's bond, which he holds.
 It will be readily. seen that this plan enables the underwritten company to sell its stock at par. or, many times , more than it could otherwise do, and. ! thus, obtain much more money for the development of it's property than it. could, by any other means and that, at the same time. it furnishes absolute security to the investor for the money