The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1905-09-28

promoters who make high art OF their
calling.
Another field which they love. and IN
wnish they are sa IN AZ ssess asms sas sd y ;ne
dustriai companies with about $4,000
In real assets behind them. t.
Some promoters ont require even
that much In the form OF assetnL They
are telling q very good little story just
nov In WAL street about ave promoters
moter-the notation" OF a company
that did not exist at all. 4
The nve met one day Inc compared
notes. The promoting business wasl
dun. One 90 them had . scheme.
Within q month q company Was in-i
Investment company n pretty close tot
the real name OF n. IL was q modeetl
little affair-oaiy a 1000. 900 concern.
shares t1o0 par. The total investmcnti
In cash was the cost OF the h~andsomelys
engraved stock scrtincates and the in-i
by law 10 be-paid I'm" was paid BY ouet
OF b ave. who was promptly elsctsdt
president. and IN promptly took the
money down again M hs salary. pay
able IN advance.
None Of the names OF tho other four
promoters appeared In the paper g
the company. With the exception OF
the president. all the officers were
clerks or humble acquaintance OF the
~nnancier&- One WAS a porter. Another
was the shocblack who had been pol
ishing the p~residcnt's hoe IN credit
for some weeks.
Between them the Ave promoters had
$40. 900 In real cash. Each took $4,000.
and within a week h ave had opened
accounts with az many big banks. each.
In his own name.
The accounts became highly activel
Immediately. Every day each promoter
would draw checks Ca favor OF the rcat.
There were busy days when each gen.
Jus would do a business running up 10,
$4,000 or $4,000. and yet az h n OF
h day the original deposit 90 $4,000
would still be I'm each bank.
In The meantime curb brokers werrl
getting modest orders at intervals OF.
two or three days for Loyalty Gold
Bond Investment company stock But
there was none IN the market--for the
very good reaso that ~ was all locked,
up I'm n safe. Being un~attainabie. tt
assumed a certain value. like all other
u~nattainabls things.
When that happy state arrived. .
curb broker who received an order for
200 shares was delighted by learning
that a man was willing TO sell that
quantity. But he was COY on being
approached. and demanded n higher
price than the brokers customer had
authorized. After a brisk negotiation,
the customer agreed TO pay the asked
figure.
Then small blocks OF the jealousy,
guarded stock began to appear. They
were snapped up eagerly. The stock
began TO set a recognized position.
For n year the sales and purchases
continued. OF course. Wall street
confined TO the 1--WE promoters n their
ngure-heads. and that all the stock sold
and purchased found Its way back TO
the same safe.
Tapping" the Banks.
IL cost the syndicate n woeful mount
I'm brokers commissions, but that was
money well invested. for when the
stock had reached a respectable quota
ton. the v promoters. honored and
appreciated clients OF 1--WE large banks
by this time. began TO send I'm large
checks 20 be certified. and ZACH man
In turn covered the ~certification by
placing In his bank all the money that
the other four had.
Now. Decentralization IL a very.
very wrongful and unjustinabie thing.
morally and also legally. Yet II must
be confessed hat IL Is not an uncom-
mon weakness. as the world learned
by the sworn though reluctant testi-
mony OF certain great national bank
officials recently.
so there came a few days OF feverish
business. n the Ave banks In turn
over certified the Ave o In
amount ranging from $1,000 To $40. 900.
The r-certihcations were made
good" promptly. Their came another
still more busy rush. n the over-cer-
tifications amounted TO as much as
$4,000 by each bank I'm turn. And
again they were made good. by the
very simple method OF putting into
each bank In turn the total assets OF
the secret syndicate.
|, But the third time the over-certinca-
ton was on the banks--and unhappy
each had over-certiied to h une OF
$4,000. Each bank promptly ~"saueal-
ed" and each promoter promptly In
formed his bank that "a big financial
operation" was o. but said each.
Il M cover you thoroughly. I have
$1,000 900 worth Of stock OF the big 10y,
atty Gold Bond Investment company.
n 1 VIII put IL In as collateral to COW
er the c~erfifcation."
The banks looked up the quotations,
found hat the stock had been In great
demand by Investors" sighed, accept
cd IL, and certified the checks.
Next day each OF the I'VE accounts,
became suddenly. depressingiy. mon
otonously and completely inactive.
After q few, more days the i've bankers
~reproached their Ave clients for having
become 80 koid and distant. The i've
clients replied that they were up
against IL: that they couldn't meet the
over-certiichtfon. but" said they,
you know tou have lots OF collateral
no you're alt right" I
Alasl The banks found that they
were all WRONG. The buyers OF Loyalty.
Gold Bond Investment stock. formerly
tearfully easer for II. had vanished,
from the faf OF the earth. The Ave:
promoters vtnished. too. temporarily,
though they aid this only from nm ex-
cess OF prudtece. for the banks really
couldn't dare 10 do anything except 20
bear their paid In silence.
Between tn first kind OF promoter.
who fools hin 3elf more than he ever
does others. t&rause his schemes re-
quire too muh imagination for the
average invest4. and the second kind,
who are comniYn swindietR. there are
all kinds and d4Erees.
Promoting lel4imate business entecS :
prises has becotf a recognized profess
sion. and there - many hundred pros
porous, highly REPUTABLE and influential 4
men In any larg, fity who pose frankly
and undisguised 4 as promoters.
IA