Omaha daily bee., 1906-11-18
Egg stock GOOD seller.

Absurd as this whole proposition was,
there were enough investing idiots walk
ing around loose in New York City to
"uibble' at this bait to the extent of
over $4,000 in cash. And it was stated
on good authority that most Of these sub
scriptions came from New York City peo-
pie who had never seen a chicken farm
in their lives, and probably didn't know
any more about the chicken and hen lay
ing business than the chickens themselves
knew about the preferred stock they were
assumed to be guaranteeing the dividends
on Shortly after this exploitation the
promoters quietly folded their tents and
stole away, as certain kinds of promoters
have a way Of doing, with the result that
the innocent but superficial investors are
still waiting for their dividends, and are
holding their stocks as permanent invest
ments."
Another instance Of the get-rioh-quick
scheme which fooled a large number OF
supposedly sane investors was the promo
ton of the sea water gold" enterprise
a few years ago. A certain man named
Jergensen, who was more avaricious than
honest, happened to discover an article
in an encyclopedia which brought to his
knowledge the fact that sea water con-
tains a small percentage of gold. but that
no method has ever been discovered
whereby the separation Of the two could
he brought about. He then devised
scheme for pretending that he had hlm-
self invented a secret process for doing
this very thing, and thereby induced in
vestors to pass their ready cash his way.
He built a small plant on the waters edge
at South Lubec, Me, a portion of the
plant being constructed out of sight and
under water. He then secured a small
quantity of gold bullion "a small genuine
gold bricE) and exhibited to certain people
in the city Of Boston, at the same time
making the statement that 1t was the
result of a test OF his secret process for
washing gold from sea water. His in
credulous listeners were invited to go to
the government assay Office with him to
test the genuineness OF the little brick.
This they did, and, to their surprise,
found that it was all pure gold. Then,
as a further proof of his discovery, Jer-
gensen invited them to so to South Lubec
with him and see his plant. They did so,
and saw the mysterious looking machinery,
part Of which was under water. They
were duly impressed. He then explained
that he could not let them see how he
did It, as he must naturally guard his Sc
cret. But the next morning he appeared
with a small can full of new gold dust,
which he said he had secretly washed out
during the night. After that, for a whole
week, while his visitors remained, he APP
peared every morning with a moderate
quantity of gold dust, which he exhibited
as a result of the previous nights work.
AS this production steadily continued, his
audience grew. Others came on from Bos-
ton, and the wonderful discovery was on
the lips Of a steadily increasing number Of
people When he next went to Boston
taking the gold dust with him, and con-
verted It into cash at the assay ONCE
many apparently shrewd people were thor
oughy convinced and regarded his claims
as absolutely proven. He then organized
a company TO sell stock, and as the snow,
ball had begun to roll. It very quickly in
creased to gigantic proportions.