The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-06-09
THE PLAN WORKS
Many People Appeal to j. n.
D0lley for Advice
Regarding Proposition to Buy
Stock From Agents.
CASE OF A WIDOW.
Who Was Offered Thirty Per
Cent on Investment.
An Explanation Regarding Bank
Commissioners Department.

The plan started some weeks ago by
Bank Commissioner j. N. Dolley to
conduct an advisory department cn
stock investments in connection with
his office has proved of great practical
benefit A large number Of requests
for advice On proposed investment
schemes holding forth glittering prom
ises Of reward have been received at
the bank commissioners office. Also a
great many of these companies selling
stock in Kansas have proved, or at
tempted to prove, to Mr.. Dolley that
they are legitimate concerns.
This new department of the bank
commissioners office is much more i'm
portant than might be considered at
generally, and especially the farmers,
are prosperous. The field, therefore, is
rich for the travelling agent with stocks
to sell. Some of these propositions are
legitimate, but majority of them are
either doubtful or worthless, accord
Ing to the bank commissioner.
The Widow and the Agent.
Some of the cases that have already
come under the bank commissioner
notice have alone more than paid him
for the extra trouble and worry of such
a department.. The other day a widow
whose husband had left her three thou
sands dollars insurance in a fraternal
organization came to the commissioner
and asked his advice on a proposition
made to her by an agent who had
stock to sell. She was contemplating
investing all of her $1,000 in this con-
Germ. Shit said she had been told by the
agent that this stock would pay 30 per
cent on the money invested. On the
showing made by the agent alone, Mr..
Do1ley advised the lady not to invest a
cent in the proposition The widow
was saved the loss of all the money
she had in the world and this single
case makes the advisory department
well worth while, according to Mr..
Dolley. '-''-'--,-
you can have no idea,,'' said Mr.. Dol
ley today in discussing the matter.
chow many people are interested in
these stock schemes as outlined by
smooth talking agents. And they are
people too. who pass for being shrewd
and Iong-headed; people who have
a,nassed some property or money. They
are caught by the bait of big dividends
promised. Now legitimate company
cannot pay big dividends at the start,
unless 1T is a gold mine with a big vein
of richly laden ore. When a company
promises 80 per cent as that widow was
promised, I am suspicious before hear
another word about it. a new stock
company, even If it was honestly pro-
NOTED and well managed has a rough
road for the first year. Yet here comes
an agent and promises so per cent in
THESE fake companies get the
s,noothest promoters available. To hear
the agent talk the stock looks as good
as New York Central preferred, when
in reality this mans word and a stack
of printed stationery and bonds are all
are being stung every day by these
fellows The Kansas money spent this
way is a dead loss to the state Not a
single pound of merchandise is brought
into the state with 1t; not single
workman is placed on a payroll as a re-
suit; not a single natural resource of
any comm unity is developed; not a
grain is planted; not a steer is added
to the herds 1t is simply a case of no
return for the money. No benefit o any
body within the borders of the state"
Get Farmers to Sign Notes.
Mr.. Dolley then went on to tell about
the plans of fakirs to get farmers to
sign notes for stock. Every conceivable
subterfuge is resorted to, and they
sound plausible to the victim. Some
times a local banker is imposed upon
to lend his aid, and occasionally this
banker shuts his eyes to the bad look
of the scheme to which he lends his
Iame.
Mr. Dolley told about an agent who
came to him the other dav to explain
how strong and reliable company he
had behind him. Dolley asked the
agent if he could bring to his office five
citizens of Topeka who had made
money out of an investment in stock
company. There are hundreds of To-
peka people who have invested i'll such
companies in the past few years, but
the agent would not agree to under
| take to find a single person who had
made money out of his venture. The
stock companies referred to were for
eign companies. Local companies with
| local men behind them engaged in To-
cal business about which every man
| has a chance to know something are
| a different matter.
The Fascination of Uncertainties.
There seems to be something fas-
cinating to the average citizen about
| a proposition to buy stock in a COM
pany that is undertaking to build a
railroad, or dig a mine, or plant fields
of rice and tobacco. burrless cookie
burrs. or build a steamship. or start a
manufacturing plant where none had
| ever grown before. Mr.. Dolley cites the
present great and rich Santa Fe rail-
road as an example of a stock COM
pany. How many men of the promo
| ters and first stockholders of that COM
pany who entered via the ground floor
made money out of it? Not one; any
way, not five. The Santa Fe like most
| of the other big railroads of the coun-
! try, passed through one or more re-
ceiverships before it was finally built
| big enough and run by big enough
men to make it pay. One share OF
stock in any company under the s,1r
is worth just its market price, and thai
is set by the earning value of the com.
pany's property or plant Again, thu
| man who owns one thousand share;
has 2 much better chance to realizt
than the little fellow who owns onI,
| five or ten or twenty shares
| Not Question of Good or Bad.
| Mr.. Dolley does not pretend tc
preach against stock companies il
/ general. but he wants to sound a note
/ of warning that will reach the spo
against the promiscuous habits O.
Kansas people at this time to bu,
stock from every agent who come,