New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1906-03-21
.COMPANY'S AFFAIRS SHAKY
Bond and Investme nt Concern Ask
For Receiver.
Worthless Investments Of Fund
Said to be Cause.
Many New Ulm People Hold Cert.
ficates in Company.

ficates in Company.
A short time ago a couple of we'll
appearing young men were in this city
and formed the acquaintance of most
of the business men of the city. They
were good takers and apparently nice
fellows, they had the backing of repre-
sentative men of nearby towns as we'll |
as the assurance that one of the banks
of this city was on their guarantee
that what they represented was all
right. They may have acted in good
faith and probably did, and for that
reason were able to get a large number
of the men and some of the women of
the city to go into the proposition they
represented.
This was the American Bond and
Investment Company of Chicago. The
project was to sell bond of the in
stitution for as many hundred dollars
as the buyer wanted and allow him ten
years in which to pay it, either in
monthly, semi-yearly or yearly pay
ments, and he might if he so desired
pay the whole of it at once and get
that much more accrued interest which
compounded every year and Melted HIM
at the end of the ten years at the rate
of fourteen per cent dividends and he
had his money returned to him.
It now appears that the company
has made an assignment, brought
about by the worthless investment of
| funds or some other reason, it is suffi-
cient, however, that an assignmentha has
been made and the money invested by
the many people who were looking for
more than the ordinary returns on
their money has been ]eopardized. 1t
is unfortunate as all over the land
there have been agents of this kind
and money has gone into the concerns
in a stream and as a rule from clerks
and others who have been anxious to
make their earnings bring them in as
much as they could.
While the affairs Of the company
may be righted and the business placed
on good financial basis, it is hardly
probable, and the lesson there is in
this is that it is better to look for the
investment of money nearer home and
with men who are handling something
you are able to investigate. The past
year or more has seen too much of this
wild cat speculation and this city, con-
sidered so uniformly conservative in
these matters, has been worse hit than
most Of the others.
The investment in Oil stock, mining
stock, air burning stove stock, and
or less shady appearance, has been
something remarkab when it is con-
sidered that a home concern needing
money could not receive anything like
the encouragement. There is some
thing in having faith in your home
people and assisting wherever there is
an opportunity in the projects that are
undertaken by them rather than send
ing the money where at best it is risky
| and is helping to build up the materi-
al welfare of some other community.
i The Review has not attempted to
) find out how many or who are in this
t bond investment deal, but it is said
that there are a number of the business
men of the city, some of whom are
E quite heavenly involved in the enter.
. PRISE. The fortunate thing is that it is
E new and most investments have beer
: made only for the first month.
d The basis of the theory Of the shaky
q condition of this concern comes from
n an associated press dispatch of recen
o date emmating from ST. Louis, which
e is as follows: Charges of fraud AM
S Insolvency were made in a suit FLEE
here against the American Reserv
Bond company of Chicago, asking 70
the appointment Of a receiver for tn
II concern. Millions of dollars belong
g ing to investors all over the Unite,
IS States are involved. The company j
Q the largest and one of the few remain
d ing of the numerous sbond invest
ct ment' and serial bond investment
lie companies which flourished extensivel
ID in many states for several years.
n BREAKS CONDITIONS OF PAROL