The citizen. (Honesdale, Pa.) 1908-1914, 1911-11-24
MUCH COLUMBIAN
STOCK IN TOWN
Professional Men Bought
Heavily Of Magazine
Stock
SOME OF THEM GOT LARGE
DIVIDENDS, AND MAY RECEIVE
PART OF THEIR MONEY BACK
WHEN COMPANY'S AFFAIRS
ARE SETTLED UP,

The fact that scores of small in
vestors in Honesdale and vicinity lost
money in the ill-fated Columbian
Magazine has been learned in connec-
ton with the latest developments in
the financial muddle which occurred
couple of weeks ago in New York,
when Frank Orff, president of the
Columbian Sterlings Publishing Co.,
and ]. F. B. Atkin, an attorney con-
nected with the concern, were ar
rested on charge of using the mails
to defraud.
1t is said the local investors are
confined principally to professional
men of the city. 1t is known that at
the time the Columbian Magazine
was started some years ago the So
licitors worked this section very ex-
tensively and scores of men invest
ed small sums. 1t is claimed that
one Honesdaler invested to the extent
of $1,000, and is probably the heav-
lest loser in this section of the state.
The proposition looked legitimate
and was open and above board. The
stock sold at $1.00 principally in
blocks of ten. The average investor
purchased ten shares of stock and
secured a two years subscription to
the periodical for $13. The extra
SO covered the cost of the subscrip-
ton for the magazine which was a
meritorious publication.
The investors do not lose the en-
tire sum spent for stock, as consider
able dividends have been paid and
there is a possibility that a certain
percentage will be realized when the
affairs of the company which are now
in the hands of a receiver, are ad-
justed. One Honesdaler who in 1907
purchased 20 shares of stock said
yesterday that he had received Ga
per cent. of his money back through
dividends He received a quarterly
dividend of per cent. for four
years, making a total of GA per cent.
The Columbian Magazine Company
apparently enjoyed smooth sailing
and prosperous business until some
months ago when the Hampton Mag
azine was purchased. Stockholders
in both companies were asked to ex-
change their stock for shares in the
new Columbian Sterling Publishing
Company, which it was announced
had taken over the business of both
magazines as well as the plant of a
third periodical which had been en-
tered in the combination. 1t was
figured that dividends were to be
paid at the rate of 12 per cent. and
a dividend of 2 u per cent. was de-
clared only a few weeks ago. Coin
cident with the last dividend came
an effort to sell more stock in the
reorganized concern.
Many of the stockholders, among
them the Honesdale investors, had
declined to turn in their original
shares of the Columbian company.
Rumors regarding the questionable
financial condition of the new COM
pany spread rapidly An investiga-
tion was started by a federal grand
jury when New York shareholders
took the matter in their hands and
asked for a receiver who was ap-
pointed.
A stockholders committee was
then organized and made an attempt
to raise funds through an assess
ment of shares. The money raised in
this manner was to be used in firm
ly establishing the business of the
new company.
Honesdale investors received fire.
quent communications asking for the
payment of a stock assessment to
raise funds to continue the business,
suggesting 10 per cent. as a reason
able assessment. AS far as known
no local investor has shown any dis
position to throw good money after
bad"
1t is said with one exception the
majority of Honesdale stockholders
are involved to the extent of less
than 500. So many persons bought
stock, however, that the loss in this
city will total $4,000. One investor
is thanking his lucky stars" that he
sold out, just before the crash came,
at As. What some of the other in
vestors think wouldn't be fit for pub
lication in a family paper like The
Citizen.