The Idaho Springs siftings-news., 1907-01-12
Forty-Eight Per Cent. a Year.

An institution or corporation offering
such an Induccmcnt to the public tor
the purpose OF raising funds to carry
IN its operations Immediately offers it.
self as a target for the most searching
criticism Indeed. such an offer in New
York City. where money is considered
to be so plentiful. and. as we are told
goes begging for tri1e over six per
cent per auuum, is looked upon in the
light of financial treason by the money
kings
he public announcement and promise
TO do such things is bad enough in all
conscience. but to actually perform these
promises By paying such dividends is
likely 10 create a great stir
The advertisement reads four percent
a month. paid monthly, twelve times a
year, and further adds that it is posi-
tive, absolutely secure and certain Such
assurance in business backed up by
actual earnings and managed by men of
business knowledge. character and abil-
ity. is certainty tempting enough to ex-
cite ones business nerve to the point
OF taking flyer.
4 representative paid 4 visit to the
Multiphone Operating Company. No. 2.7
Park Row, New York expecting to find
a modified t-rch-quick scheme in full
Mast, receiving money by the carload at
one window and handing it out at the
other as dividends His astonishment
may be imagined when, after the most
searching kind of an investigation, he
found the company was not only paying
dividends OF four per cent month regu
iarly. but were earning even more than
-that The result was that he, too, emptied
his pockets of the greenbacks he had with
hun to be converted into veritable gold
nuggets by this very up-to-date and en-
tcrprising company.
D.. We all know that forty-eight per cent
year is nothing II .sual for corpora
tion to earn on the capital invested. but
It is very unusual, indeed for such earn
ines to get past the officers and direc-
tors Of corporations earning these enor-
nous dividends Take for instance the
Pullman Company's recent announce
mcnt OF S55. 10000 surplus. The news
papers stated that this large amount OF
-Stored-up earnings was to be divided
among its stockholders but what acttl-
ally happened was this: The company
increased its capital stock ard then
handed the certificates 10 its stockhold
: ers. True II is saleable stock, and may
: be converted into cash, but al what tle
= ure depends entirely upon market con
ditions; the S35oooooo in cash, how
ever. never left its rnoorings and anchor
which is very usual
Investigation shows that the officers OF
the Muitiphone Operating Company. VII
are also its uanal lrs. receive no saIariC
and depend entirely upon the earning.
of their stock, which, by the way, never
more than equals the amount purchase
for cash by investors. At first blush tli.
appears to be little enough, but il til,
plans carry out as Outlined they ar,
mighty well off A visit to the factory
showed signs of the greatest activity
smoke going out OF the chimney an.
every one working to get the instru
meutS out The nroen.ctr, gives
glowing account OF the Mu'tiphone, and
in our opinion, It is not cT rStatcd i
ore p7,f.cular. The trsiers ',e. be-
srcceSsfui from the start and the divi
denls are paid regularly.
Ii Is refreshing to know that 4 hol'
of men are willing to stake their none,
.'s@nd time with that of the customer i
an honest effort to produce diyideuds
r,ad then equally divide the product, g.
this :s what is actually being promise,
ard fulfilled 1t is also Somcthi"g c.
tire,y novel to be allowed TO feel tn
real old fashioned hard coin as il aces
muIates instead of reading about it be
Ing stored up for safshecpi in til
hands OF others.
The plan is departure from the or
dinary business methods bat only in il
fairness to investors We should iik
to see it einulated by other financial in
stitutions or corporations who take gre5
pains to enrich themselves al the cS
pense of the public, with little after
thought OF their interests-NereaHtil
Financial Re7'ifar.