The commonwealth. (Greenwood, Miss.) 1896-1923, 1908-01-24

property or securities. without really
assuming any general financial or
moral responsibility for those Gecuri.
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 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 msy 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 a 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 a
guarantee OF value, There are almost
as many different kinds Of trusts IS
iheFe are different transactions, the
trust company undertakes the respon.
stbtlity OF doing a certain definite and
particular thing and nothing more:
II may be TO foreclose II a mortgage
Il not paid. or It may be to issue so
many shares Of q certain stock To a
certain person whes a stipulated mum.
Der OF shares Of another issue are
surrendered.
but there are very few men even
fairly familiar with business routine
WAC do not form an Impression that,
somehow. the big trust company is
behind the stocks for which IL actg AZ
transfer agent or perform any other
act Of trastshlp. /, Is almost lmpossi.
oIo to drive this idea out Of the minds
OF mea who are not really familiar
with corporation matters from an Ia.
side viewpoint They will Insist upon
attaching 10 a limited service an IN.
limited moral and financial responsi.
bility that does not exist.
1t Is, therefore, Of the highest possi.
bic importance II you Hud yoursel!
tempted to go into AZ investment that
you learn from ,he trust company
mentioned in the literature q the ven.
turc exactly what "Irust Il, has m.
dvrtaken to perform. II Il is a really
reliable and established trust com.
pany with a genuine Grancjal stand.
ing It will make the limitations az it,
tTust very ciea.' u 900: 1, Si,i tan.
special pains to make you understand. (
Tor example, thar It's only function
in the matter In question and in con.
nection with the company concerned,
is the purely technical one Of seeing
that a certain issue Of bonds Is
made in form whom the technical
prelIm inaries have been complied
with and that It does not give an
ounce of It's prestige or moral support
TO the bonds themselves or stand le-
bound for a penny of RESPONSE.
bility in connection with them. An.
other word Of caution: Whenever
you see the name OF an educator. a
'Or a popular politician or any
other leader having a hold on the sen.
.iment OF a community, used in connec.
ion with an investment offering, look
ntc IL carefully and take no step until
he person mentioned has been ques.
toned directly by you,
know of an instance where the
loor people Of a parish were victim
Ged because the INSCRIPTIONS agent
lad attached to his prospectuses and
circulars the name of a popular priest
VI that region, These poor victims, in.
.tead Of going to the reference" sim
,ly said; III the fathers In it, sure
ts all right" and they were relieved
# their savings before the father
earned of the use of his name-which
vas wholly without his knowledge.
The solicitors FOR this swindle had
a bold game and banked on
heir knowledge of human nature to
he effect that most persons will take
reference" fofa sLnted instead of
it for she Non. 'e of seeking in.
ormatlon. There ais very few of the
lists OF men and business or financial
named as references in the Mt.
of scaly investment concerns,
which do not contain some unauthor.
1cd names names of some persons
Who, If questioned. would have given
warning instead of an endorsement.
Copyright, by Joseph u Bowles.D