The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1907-01-29
CASH TO BATES
FROM POCKETS OF
INVESTORS
Was Reward of His Sc
duClive Angling.
Some of His Circulars
Were Received in Can
ton Where They At
traCted Attention.


of one Charles Austin BATES, of
New York, who has been flooding this
and other sections with attractively
worded circulars intended for inves-
tors who have cash to spare, and per-
haps, not very great amount of
discretion.
There are several business men in
Canton who are acquainted with the
literature of Mr.. Bates. In fact it
would be possible to mention the
names of few who are 50 well ac-
quainted with the Bates investments
that they don't like to talk about
them. The following article, how
ever, should act as a warning to those
who have not already, but who are
considering the matter of taking hold
Of the seductive bats held out by the
Elusive Mr.. Bates The article is TAX
en- from the New York World:
"If can show you how to invest
$500, with guarantee OF casn IN
come of $3.50 for twenty years-and
then get back your original S500-will
you consider it?"
This is the opening paragraph of a
circular which Charles Austin Bates,
of No. 800 Fifth avenue, head of the
Knickerbocker Syndicate, is sending
into the rural districts, inviting in
yestors to buy $500 bonds in an Ohio
coal mine. The circular continues:
"Of course you don't believe . can
ia ~ IN
until you have seen the evidence l
had before l put in my own and my
friends money. Maybe you won't be-
lieve it even then"
MR. BATES EXPLAINS.
Mr.. Bates is young looking, smooth
shaven. man with pompadore hair la
Marcel. He sits behind big fiat desk
In suite of elaborately furnished
offices at No. 800 Fifth avenue. The
sutside Office is filled with young wom-
en- addressing envelopes upon type
writer's
"Why, it's this way" said Mr.. Bates
when asked for an exposition of his
plan. 1--WE represent the Consolidated
Ohio Coal company, of Birds Run,
Guernsey county, o. The company
represents the consolidation of three
companies: The Toledo Coal and Clay
company, the Central Ohio Coal COM
pany and the Indian Camp Coal COM
pany. The consolidated company owns
the coal under 1855 acres of land in
Guernsey county-owns some of the
land.
There are 20,000000 tons of coal
there in sight, as attested by e. G.
Spilsbury,. a mining engineer, of No.
AZ Broadway. Now all you have to
do is to buy 6 per cent bond for
$500 and get $500 in stock as bonus,
and lie back and draw your per
cent on the bond and SO per cent on
: the stock, or $3.50 year, and there
you are"
well, do you guarantee the so per
cent dividend on the stock?"
mot exactly; you see, it's this way.
We issue 100000 in bonds, through
. financial companies in New York and
Toledo, and $1,750,000 of stock, of
which 100000 goes to the bondholders
as bonuses, 100000 is held in the
treasury and $S50,000 goes to us for
financing the company. All we have
got to do is to mine 100000 tons of
coal year and sell 1t at profit of
thirty-fve cents ton to realize q
profit over mining of $4,000. That is
$4,000 more than 30 per cent upon
the 100000 stock issue, and within
$4,000 of enough to pay the interest
upon the bonds; see?"
eyes, but are you now mining 1,20O,-
600 tons a year? In your circular you
say: 1T is investment / offer, not
speculation
1--WE are only mining 10000 tons OF
coal year now, but we expect to use
the money we secure from the sale of
bonds for improving our plant, and in
time we shall reach 100000 tons a
year"
"This year
'Well-er-no."
"Next year?"
"Well-er-no."
"Do you guarantee the interest upon
the bonds?"
'Well-er-no; not precisely"
But Mr.. Bates was very sure that
he had the biggest investment of the
times, and that his circular is justi-
aed "You see," said he, 1--WE have
tried sending out conservatively
worded circulars and got no response.
We have got to get 'em up lurid to
attract investors, you know"
In his report to Mr.. Bates, Engineer
spiIsbury is silent as to the 10000.
900 tons of coal In sight"
Mr. Bates circular says the presi-
knt of the coal mining company is