The Greeley tribune., 1912-03-07
THE GET RICH QUICK" CT q
GENHEIMS

AS the struggle tor existence mas
grown fiercer. there has come IN
creasing fear of the poor house, so
that even the most thoughtless Try
to Law I'D something against old age
such as these GO to make up the
Investing public'-countless nun
arads of men and women eager TO
put their savings in some security
that will ephance in value as the
years go by,
AS a matter of course. swindlers
have arisen to take advantage OF
these small investors. Scarcely a
dav goes by that we do not read OF
prosecutions commenced against
scoundrels who have promised toF-
tunes from asbestos. mines, ruober'
coffee or companies or one KIM or
another. The Investing public IN
consequence, has grown wiser, ana
are no longer easy prey for the get
rich quick fellows who have no
other assets than an advertising ap-
preparation.
This new wisdom, however. has
not vet extended to others than the
petty grafters The great names OF
finance. just as unscrupulous as the
fake promoter. but infinitely more
cunning and respectable. still job
and juggle stocks to their own en-
richment and the utter ruin OF the
small fry" They are seldom prose-
cuted and their operations always
have certain legal color. but in the
last analysis their methods are Just
as reprehensible as those of the man
who capitalizes one rubber plant for
a million, and then puts the pro-
ceeds in his pocket.
In 1905 it was announced that
the Federal Mining & Smelling
company was now "Guggenheim
proposition. insomuch as control
had been bought by the American
Smelters Securities company. own
ed by the Smelter trust. This fact
of Guggenheim control was print
ed in Moodys Manual and other
authoritative books of financial ref
erence. and was not denied. The
capitalization of the Federal Min
ing & Smelling company, it may be
mentioned, was $SO,OOO.0O0.
In 1905 the Federafs affairs
mon me,e .snel aans ns,:, .1H M per a-snt. = ava
sold as high as 1879 The preferred
shares paid their per cent and
sold at 112 rs. The proposition
looked good to the Investing pub
lic", for was the company not con
trolled by the great Guggenheims
and since it paid so well in 1906
what more reasonable than to as
sumo it would pay better each sue.
ceeding year. The stock sold like
| hot cakes, not only in this country
but in Europe.
In 1909, however. Federal com.
mon stock paid dividend of l n
per cent, and has paid none since
Its value has dropped from 1879 tc
10. The preferred stock still pays
its per cent, but it has not earned
it. and from 1877 rs its value haa
dropped to 40. These figures rep
resent RUIN-the utter despolia.
tion of all those unfortunates who
bought Federal stock
But the Guggenheims are not tc
blame. A month ago, in q signed
advertisement. they expressed re
gret that their names should have
r
eral stock selling. In panied words
they denied having control of the
company, expressly stating that the
American Smelters Securities COM
pany had never owned but ONE.
SIXTH OF the Federal capital stock
1t is not for simple Western folk
to surmise or accuse, but Garet Gar.
rett. the financial editor Of Collier 4
Weekly. may be looked upon al
something of an expert. Here ii
; what he says:
) The riddle is: How did
Federal Mining and Smelling
; shares get sold to the persons
! who now hold them at heart
, breaking loss2 The shares
must have sold themselves, of
course. They sold themselves
| to credulous people not only in
this country. but. strangely
enough, especially on the Con-
tinent, where the seven Messrs.
: Guggenheims are great travel
ers. If NJ. Gugsenhelm's sons
did not know in 1906 that Fed
; erai Mining and Smelling
shares were either selling
themselves or being sold on
the Guggenheim name. they
were the only seven men in
tne world of finance ignorant
or 1t; and If they did not know
mat they We're either selling
themselves or being sold at
, fantastic price value. then
, there is no accounting for the
, ,act that NJ. Guggenheim's sons
nave got rich in mining and
smelling shares.
t ana no simon Guggenhelm is hailed
/ as -coiorado's sayior'" = Denyer