The silver messenger. (Challis, Idaho) 1890-1912, 1908-03-24

Deen, at the start, believer in the
enterprise and willing to say within
certain limitations, that he believed
the venture could be made a SUCCESS II
conducted according to certain plans
ana under given restrictions. This
uoes net signify that he will continue
10 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 It's a
good thing" But you may be sure
Shat his name will always be used to
create this impression If there has
ever existed a shadow of warrant for
using 1t, under whatever restrictions.
Therefore, take nothing for granted
with regard to references or other
names which appear IN the advertis.
ing matter of a concern which applies
70 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 a
trust company may execute a 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
Tor them. In word, the trust COM
pany may engage to act as an escrow
agent to see that a certain technical
transaction is completed and nothing
more. That means this The trust
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 done
With them after the stipulations as to
the conditions precedent to delivery
have been fulfilled. Because a trust
company acts as the trustee of GER
tain bond issue there is no warrant for
a prospective investor to feel that the
resources of the trust company are
in any sense behind those bonds as
guarantee of value. There are almost
as many differant kinds of trusts" as
there are different transactions; the
trust company undertakes the respon-
sibility of doing a certain definite and
particular thing and nothing more:
II may be to foreclose if a mortgage
is not paid, or it may be to issue so
many shares of a certain stock to a
certain person wher stipulated num-
Der of shares of another issue are
surrendered.
But there are very few men even
J fairly familiar with business routine
! who do not form an Impression that,
somehow, the big trust company is
behind the stocks for which 1t acts as
} transfer agent or perform any other
act of trustship. 1t is almost impossi.
+ bio to drive this idea out Of the minds
r of men who are not really familiar
: with corporation matters from an in,
}. side viewpoint. They will IN sist upon
D attaching to limited serfiHe an UNI
r limited moral and financial RESPONSE
e bility that does not exist.
j 1t is, therefore, of the highest posi-
y BILE Importance if you find yourself
I tempted to go into an investment, that
d you learn from the trust company
r mentioned in the literature of the ven
ture exactly what trust" it has un
e dertaken to perform. If it is a really
e reliable and established trust com
II pany with genuine financial stand
g ing it will make the limitations of it
/ trust very CleaI' u yOd; IL w1Il tax
l special pains to make you understand
n for example, that it's only function
% in the matter in question and in con
g nection with the company concerned
10 is the purely technical one of seeing
T. that a certain issue of bonds
e. made "in form" when the technica
'e preliminaries have been complies
a with and that it does not give al
y ounce of its prestige or moral supper
g to the bonds themselves or stand le
e gally bound for penny of responsi
'r bility in connection with them. Ar
If other word of caution: Wheneve
ID YOU see the name of an educator,
10 pastor or a popular politician or an
IL other leader having hold on the ser
ID timent of a community, used in connect
u ton with an investment Offering, loo
lie into it carefully and take no step unit
is the person mentioned has been que'
is toned directly by you.
Ie I know of an instance where tn
poor people of a parish were victim
re lied because the INSCRIPTIONS ager
u had attached to his prospectuses an
70 circulars the name of a popular prizes
le of that region. These poor victims, Il
r. stead of going to the reference" sin
r. ply said: IF the fathers in it, SUI
5n it's all right" and they were relieve
re of their savings before the fatht
ne learned of the use of his name-whic
le was wholly without his knowledge.
- The solicitors for this swindle ha
- played a bold game and banked c
their knowledge of human nature
= the effect that most persons will tai
~ a reference" for granted instead
~ using it for the purpose of seeking l
~ formation. There are very few of Il
lists of men and business or tinanct