The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-11-29

promlncnce and great faith may have
been, at the start, believer in the
enterprise and willing to say, within
certain limitations, that he believed
the venture could be made a success il
conducted according to certain plans
and under given restrictions. This
does not signify that he will continue
TO retain that confidence or that he
Is willing to be understood as giving
the venture HIS unqualified endorse.
ment or TO say to the public which
respects his name and position: Come
and share this enterprise with me:
put your, money. into it, for its .
good thing" But you may be sure
that his name viii always be used to
create this impression IL there has
ever existed shadow II warrant for
Using It. under whatever restrictions.
Therefore, take nothing for granted
with regard to references or other
names which nppear in the advertis.
ing matter of a concern which applies
to you for the privilege of spending
Your savings.
But let me place special emphasis
upon the crafty use which these com
panies make Of the names and the ser.
vices of reputable trust" companies.
l use the word services" because q
trust company may execute trust
in connection with bonds, stocks,
property or securities, without really
assuming any general financial or
moral responsibility for those securi
ties or without becoming a sponsor
for them. In a word, the trust com
pany may engage to act as an escrow
agent to see that certain technical
transaction is completed and nothing
more. That means this: The trus,
company consents to hold the stakes
between two parties but without the
slightest responsibility as to the value
of those stakes or what may be dout
with them after the stipulations as tl
the conditions precedent to deliver,
| have been fulfilled. Because q trus
company acts as the trustee of Ger
I tain bond issue there is no warrant fo
4 prospective investor to feel that thu
| resources of the trust company arr
In any sense behind those bonds as
guarantee OF value. There are almos
as many different kinds of trusts" a
there are different transactions; th
trust company undertakes the respon
sibility of doing certain definite an,
particular thing and nothing more
It may be 10 foreclose If a mortgag
is not paid, or 1t may be to issue s.
many shares of q certain stock to
cestain person wher a stipulated nun
Der OF shares Of another issue ar
surrendered.
/ But there are very few men eve
fairly familiar with business routin
Who do not form an impression tha
somehow, the big trust company /
behind the stocks for which 1t acts a
transfer agent or perform any othe
act OF trustshlp. 1t is almost imposs
dc to drive this idea out of the mind
II ine3 who are not really familia
With corporation matters from an il
( side viewpoint. They will insist upo
attaching to limited service an III
United moral and financial respons
5ility that does not exist.
1t is. therefore, of the highest poss
bic Importance If you find yourse
emptcd to go into an investment. ths
you learn from the trust compan
mentioned in the literature OF the vel
iure exactly what trust" II has IL,
/ lertaken to perform. If 1. is a real
reliable and established trust con
Gany with n genuine financial stan
Ing 1t will make the limitations of Il
trus. very ciea.' le ,.u; ~ Wal tan
special pains to make you understan
for example, that its only functio
IN the matter in question and in co
pection with the company concerne
is the purely technical one of seeir
that a certain issue of bonds
made lin form" when the technic
preliminaries have been compile
With and that it does not give q
ounce OF Its prestige or moral suppo
to the bonds themselves or stand
gally bound for penny Of respons
bility In connection with them. A
other word of caution: Whenev'
you see the name of an educator,
pastor or a popular politician or an
other leader having a hold on the Sc
tiInent of community, used in come
tion with an investment offering, loo
into II carefully and take no step uni
the person mentioned has been que
toned directly by you
know OF an instance where Il
!, poor people Of parish We're victir
lied because the unscrupulous agel
, had attached to his prospectuses al
. cir culars the name of a popular prie
of that region. These poor victims, |
stead of going to the reference" sir
ply said; III the fathers in it. su
! it's all right and they were relieve
!. of their savings before the faith
! learned of the use of his name-whit
was wholly without his knowledge.
|, The SOLICITORS for this swindle h;
a played q bold game and banked {
!. thpir knowledge OF human nature
;. the effect that most persons win tai
9 a reference" for granted instead
0 using II for the purpose Of seeking /;
n formation. There are very few OF Il
/. lists of men and business or iinanvi
A..,u..v mod ,nfarnnnocs In, tho