Willmar tribune., 1909-06-09

between these departments and not |
. little jealousy. 1t is only as last |
resort that our branch of the ma |
chinery of government is brought into
requisition, and not until the post |
office inspectors have failed utterly.
l was visiting at the home of Capt. |
Dickson, who had once been high in
the counsels of the United States
secret-service but was now retired.
Each of us had cigar in our fingers
and before us was sherry decanter-I
the captains favOrite beverage. He
knew what I was there fora story,
and he was willing to tell one as soon
as he could find the lead. And the
interesting feature about his expert
ences is that they are true happen
ings, and his simple way of telling
them made the picture he drew stand
out the more clearly. couldn't i'm
prove on them if tried to embellish
them, so l repeat his words as I re.
member them.
a case of this character occurred
a few years ago in one of the larger
western cities.
1t was a mining-case-a company
backed by $50,OOO,OOO capital stock
and, to all appearances, it was q
legitimate scheme. Among it's direc-
tors were four or five well-known
western mining men, one I remember
being an eX-United States senator. It
advertised extensively in the newspa-
pers and by circulars. Orders for
stock were pouring into the company
IN such large quantities that it re-
Quired two and three mail-wagons,
sometimes, to haul a single days
mali.
The stock was sold in small quaint.
ties, no one being allowed to sub.
scribe for more than 100 shares at
dollar :. share, out of each million dol
lars Of stock issued. The stock was
it was paying annual dividends of 20
per cent. In five years the subscriber
had his money back and still owned
his stock, of course. 1t made de-
cidedly attractive investment, and
people from all over the country just
broke their necks, pardon the ex-
preston, to get in on the ground.
floor.
The advertising matter of the COM
pany, which operated under the name
of the Amalgamated Gold Syndicate,
was cleverly written. It stated that
the discoverers of the mine were two
poor prospectors without kith or kin
but with hearts overflowing with gen.
erOsity, who, from the two millions of
stock that each owned, derived a rev.
enue greater than either could spend
and, appreciating the Affections of the
poor and the scant opportunities for
man of small means to find a safe
and profitable investment for his saw
ings, they had decided to share their
wealth and prosperity with their fel-
4 low men.
The company placed $2,0O0,OOO Of
stock upon the market each year.
$1,O00,000 in January and 81, 100000 in
July. 1t advertised that no one person
would be allowed to subscribe for
more than 500 of each semi-annuai
issue and that the subscription-books
would be closed as soon as the re-
Quisite million was subscribed
The post-office department became
suspicious as soon as the advertise
ments began to appear, and the in.
spectors were Immediately put upon
the case. They worked for six months
and found nothing that supported
this suspicion in the slightest. On
the other hand, they established be.
yond doubt that the mine had been
discovered by two poor miners who
had no relatives living, so far as
could be determined; that they had
induced capitalists to invest $1,000, 900
IN cash in the venture, and had then
organized and incorporated the Anal
gamated Gold Syndicate with a paid
up capital of s5,00O,OOO, selling the
mine to the corporation for $4,000
of stock. The mine was called "The
katydid," and # had been worked for
time by the corporation at a big
profit. The two miners, poor no long.
er, had, after a time conceived their
charitable scheme, and had put it
through much against the wishes of
the minority stockholders, who were
poWerless to prevent It.
Accordingly, the capital stock had
been increased from $5,00O,000 to
$3O,OO0,000 and the charter authorized
$2,000,0O0 of the increased stock to
be sold each year.
The company apparently did every
thing that it advertised. 1t regularly
paid its stockholders an annual divi
dend Of 20 per cent. No one person
was permitted to take more than 10C
shares Of the various semi-annual is
sues. Cases were found where money
had been returned to subscribers who
had endeavored to secure larger Quan
titles, and many instances were dis
covered where checks for stock-sub
scriptions had been returned with q
brief letter stating that the semi-an.
nual issue had been exhausted before
the subscription had been received
On it's face, it was the fairest sort
of a deal, although the plan of the two
benefcent miners did not exactly
average up to the standards of human
nature that the world has come tc
expect in businessmen and especially
in promoters of mining companies.
Hudson, one of the miners, was
president of the company, and in
charge Of the offices it maintained II
the western city, which have alread1