Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1912-10-24
Fix the Prices

sociates entered into with themselves
through Haines as trustee, provided
| that the sale of the $4,000 shares of the
capital stock of the company, which
called for par value of only $40 each,
should be sold in five blocks of 5000
each, the first block to be sold at $40
| per share, or just twice the par value
of the stock of the concern; the second
| block of 5000 shares to be sold at $3.50
each; the third series of 500 shares at
/ S25 each; the fourth sereis of 5000 at
$3.50 each, and the fifth or final ser
les at $50 each.
| 1t can be seen from this scheme of
selling what Houghton, the representa-
tive of the Washington state insurance
department meant, when he declared
that the promoters were actuated by
desire for whatever more they were
able to secure in the manipulation of
the stock sales when the advance in
price was made
1t would be possible for instance for
the promoters to take the entire first
series at 500 per share, paying there
for only the S. cash which the con
tract required to be paid, but which in
turn went back to them as commissions
for the sale, and hold this block until
the second series went on the market
at $22.50 or the third at $25 per share,
or even the fifth at $50 per share and
then unload upon the unsuspecting pub
lie and thereby make marvellous pro
fit out of no investment at ALL
Secured Large Profits.
Mr. Houghton in covering this fea
ture, complains that it is impossible to
tell how much money was made by this
system because of the lax and incom-
plete manner in which the books were
kept by them at that time, but he says.
1.-The amounts obtained through stock
manipulation were undoubtedly large,
but cannot be fixed because of the in
definite records pertaining to the sub
scription and transfer of the original
stock
He does say, however, that the plan
of sale and the contract purchasers of
stock, 100000, Of which $25O,OOO was
to be full par value of the stock at
$40 and $25O,0OO was to be paid sur
plus.
1.-THE result however, he says, Gas
disclosed by careful checking of the
accounts available, shows condition
far different from the figures set forth
above. y A little later on he says:
''The early stock records of the com
pany are in very poor shape with not
much data to work from, but, by using
good deal of time and the help of the |
company's present cashier, the follow
ing result was ascertained which is be-
lieved to correctly represent the actual
condition of the stock FEATURE He
then gives the result by each series
showing the amount from capital stock
at $l75,5O6.0s, whereas it should have
been $250,000, and as paid surplus
$l43,012.21, whereas that amount
should also have been $250,0OO. This
gives total of only $318,418.29, where
as it should have been 100000.
Again, it should be borne in mind
that if this shows loss to the Idaho
State Life Insurance company, such
loss has been made good by the sub
stantial men who have since taken
charge of the company and routed
Haines and his associates from control,
so that the financial standing of that
company is now absolutely secure, its
resources are unimpaired and no re-
Election is made against the present
which is understood to be
absolutely upright, honest and reliable.
The public is warned against bias
against the company which has should
cred the burdens imposed by the con-
ditions discovered and has come out
as safe and as secure as any similar
company.
High Flyer Salaries.
Attention is called in the joint report
of the state officials of Washington.
Utah and Idaho that the officers of
the company, although inexperienced
and incompetent to handle that kind
of business, voted themselves immense
salaries. ''Before the company had
one cent of income" the report says
they voted the following salaries:
President, $4,000 per year; secre-
tary, $4,000 per year; agency director,
$4,000 per year; general counsel, ST.
200 per year; medical director, $4,000
per year.
Concerning the abilities of the offic.
ers who were receiving these handsome
salaries voted to themselves, the report
says:
"The actual management of the com.