The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1910-05-29

of the organization company.
A charter was secured very quickly
note that the first young man had
political affiliations-and an office was
rented at once. That was little
more than twelve months ago.
Right away, one of the typical pros
pectus booklets was drafted and
printed. 1t is neat but not gaudy.
This statement applies only to its
physical appearance. Its contents are
gaudy but not very meat" Some OF
the statements contained in it will be
touched upon in slight detail later on.
Thousands of these booklets were
distributed among the business men
of New Jersey. They found their way
into the hands Of most of the respon-
sible business men and manufacturers
of all the cities from Atlantic City to
Paterson. At the same time, adver-
tisements were inserted in the papers
calling for stock statesmen.
Nobody, according to the prospec
tus, could buy more than 250 shares
of the stock of the new company,
worth $4,000. The price of the shares
was fixed at $40 and the surplus So
so that buyer of one share of stock
paid 500
Things started out with a rush. A
| board of directors was gathered, in
Guiding many men whose names are
we'll known both in the larger bust
ness circles of New Jersey and to
Messrs. Dun and Bradstreet. The
company went on record as declaring
| that none Of these gentlemen received
any special inducements to serve.
Some of them, however, got their
stock at a discount of 40 per cent on
| the surplus-20 per cent. on the total
cost-while others had private agree
ments with the agency that their own
casualty business would be written
for them at discount of 20 per cent.
| Lest this seeming contradiction
should seem to impugn the honesty
| Of the company, it may be added that
| the statement that no special induce
ments were offered was made by the
! insurance company, while the special
| inducements were really offered by
| the promotion company. Thus it will
| be seen that Truth is still held in high
repute and honor in New Jersey
! There were, during the early months
Of the life Of this company. q few
burning moments Several of the di-
rectOrS, when they found out by read
ing the prospectus and the newspapers
that they had been made directors,
came around and gently removed
their names from the list. These were
thin-skinned gentlemen. There were
plenty of others to succeed them. IN
time. list of thirteen directors was
held together. including some of the
most prominent politicians, eX-state Of
icers. manufacturers, and even bank
ers in New Jersey. These gentlemen
today guide the destinies of this COM
pany.
The fiOtation year was not exactly
a bed of roses. In spite of everything,
the stock went out slowly. To be sure,
the promoters made statements every
now and again 10 the effect that it was
fully subscribed even, quite
lately, they raised the price But the
statesmen found it hard going, and one
by one they turned their backs upon
it. Around the turn of the year the
situation was critical. The company
was not supposed to Degin doing bust
ness until its stock was paid: that is
the law. At hat time a little more
than half was really paid up, and a
good deal of the rest was contracted
for by the promotion syndicate and
other stock-seIling agencies.
1t began business. If any one VINO
reads the law wants to know how it
was managed, Trenton is the capital
/ of the state of New Jersey. and it has
an insurance department. Ask it,
| Presumably the law was met. II is to
I be presumed that somewhere in the
| Trenton records there is an affidavit
/ signed by responsible officers of the
company to the effect that all it's cap
! ital and surplus have been subscribed
and paid for in full. Anyway, bust
ness has begun.
| 1t is we'll TO summarize the position
of the promoters-remembering at the
same time that it was begun and
| founded at the instance of a Jersey
brewer who had figured out that some