The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-02-11
GUARANTEES STOCKS AND
....:~ - BONDS ...:.=>:
Plan Used Successfully, In England for
Last Fifty Years. = ~.

Plan Used Successfully In England for
Last Fifty Years. 49,.
. The Pacific Underwriting & Trust Conn
pany Of California is the first company
to guarantee stocks and bonds of other
corporations in this country. This same
plan has been used in England for the last
fifty or sixty years with great success.
According to Bradstreet's report the Pa
cif1c Underwriting & Trust company has
resources OF s10,000,000. !. ,:.,...;1
Underwriting, as applied to: stocks or
bonds. means that the investor is abso-
lutely guaranteed against loss Of principal,
and the only chance that he takes is that
he viii get interest on his investment.
This, Of course. is left to him to decide
on the proposition which is presented, the
possibilities being much less when under
written or guaranteed stock is offered on
account Of the rigid examination which
is made by. disinterested engineers and ex-
perts of the property; SO offered. The Pa
cif1c Underwriting Company in all cases
thoroughly Investigates the proposition be-
fore accepting the application for the
same. Furthermore the company informs
us that they are very: careful regarding
the officers OF the different companies
which they underwrite not to have any
stock jobbing propositions put before the
public under the guaranteed plan.
The Pacific Underwriting & Trust Com
pany has an unique plan, for protecting
their bonds, besides the assets of their
company. as they place in trust with To-
cal trust company real estate mortgages;
which are placed on, local real estate in
the vicinity where the stock is disposed
or. If the investor desires. he can obtain a
security for the bonds issued by the Pa
cific Underwriting & Trust Company, the
bonds Of prominent railroad companies
municipal bonds Of New York city and
Chicapo or TTnitnd Stafe9 m
bonds. s
The Pacific Underwriting & Trust Com.
pal1y in some instances where the prop.
erty is not thoroughly developed and able
| TO pay a dividend in a short time issues
bonds drawing small, or banking IA tt
Of interest. until the property is in sucf
position as to pay dividends ON thefl
stock. The underwritten stock in all in.
stances goes for the development Of the
company and is treasury stock of sale
companies. There is no promotion stocl
sold to the investor through this plan
This is another safe guarantee to thu
investor when he knows what he puts il
goes for the development Of the propesi
ton, and not in the broker'ssor promoter
pocket. zs AK
| The bonds Of the Pacific Company llav,
| a loan value of so per cent, of their face
plus the accrued rate of interest.sfrom thu
time they are issued, and are. equal t,
buying stocks on margins, as you cal
carry the stock and get a loan on thi
bond from any express company, banking
company or trust company in the Unite,
States. There Is every reason to suppos
that man taking his chances on stool
would invariably demand guarantee,
bond for protection, as the numerous com
panies which have been exploded within
(, the last year or two would teach a lessor
i in this line .