The Greeley tribune., 1908-01-02

N
ouiries OF them. Again, some man ot
prominence and great faith may nave
heen. at the start. believer IN me
enterprise and willing to say, WITHIN
certain limitations, that he believed
the venture could be made a success II
conducted according to certain plans
and under given restrictions This
does not signify that he Will continue
10 retain that confidence or that he
is willing to be understood as giving
the venture his unqualified endorse
meut or to say to the public which
respects his name and position: Come
and share this enterprise with me:
put your money into 1t. for it's
good thing" But you may be sure
that his name will always be used to
create this Impression il there has
ever existed a shadow of warrant for
using it. under whatever restrictions.
Therefore. take nothing for granted
with regard to references or other
names which appear. in the advertis-
ing matter of concern which applies
10 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" compapies.
| use the word services" because .
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 \ 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 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 q Ger.
tain bond issue there Is NO warrant for
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 different kinds of trusts" as
there are different transactions; the
trust company undertakes the respon-
sibility OF doing a certain deiinite and
particular thing and nothing more:
1t may be to foreclose II \ mortgage
fS u ~
many shares Of certain stock to n
certain person wher 4 stipulated mum.
ber OF shares of another issue arc
surrendered
But there are very few men even
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 Al
transfer agent or perform any other
act Of trustship. 1t 10 almost impossi.
BILE to drive this idea out Of the minds
Of men who are not really familiar
With corporation matters from m In.
side viewpoint. They will insist upon
attaching TO q limited service IN nm.
limited moral and financial responsi.
hility that does not exist.
1t Is. therefore. Of the highest posi-.
BILE importance II you and yourself
tempted to go into an Investment, that
you learn from the trust company
mentioned in the literature of the ven.
ture exactly what trust" It has un.
dertaken to perform II 1t is a really
reliable and established trust com.
pany with a genuine financial stand.
ing 1t Will make the limitations of its
trus. very cieA.' u ..u; ~ VII taks
special pains to make you understand,
Tor example, that Its only function
In the matter in question and In con.
nection with the company concerned,
10 the purely technical one OF seeing
that a certain issue OF bonds is
made ''in FORM when the technical
preliminaries have been complied
with and that it does not give an
ounce OF its prestige or moral support
to the bonds themselves or stand le.
gally bound for a penny Of responsi.
bility in connection with them. An
other word Of caution: Whenever
you see the name of an educator, q
pastor or popular politician or any
other leader having hold on the sen.
timent Of community. used In connec.
tion with an investment offering, look
into 1t carefully and take no step until
the person mentioned has been ques.
toned directly by you.
l know OF an instance where the
poor people of parish we're victim.
lied because the INSCRIPTIONS agent
had attached to his prospectusas and
circulars the name of popular priest
OF that region. These poor victims, in.
stead of going to the reference" sim.
ply said: IF the fathers In 1t. sure
it's all right" and they were relieved
OF their savings before the father
learned Of the use of hIs natna-whinh