Lower coast gazette., 1913-12-13
The Story Of Sealshipt
Oysters.
Report Of President H. o. Underwood,
to the Stockholders-A Story. Which
Reads Like Romance.

dent H. o. Underwood to the stock.
holders, which should be of general
interest to the trade:
Gentlemen and Fellow Stockholders:
So far your oyster company has proved
a losing proposition. Fortunately, or
unfortunately, my share has been
great because I put a large amount OF
money into it, and induced my friends
to do likewise. For that l owe an apol.
ogy, but the apology is just for one
thing, and that is bad judgment-bad
judgment in going into the company
so heavily, and in the prices we paid
for properties. From the time the
preset management took control of
the property l feel there need be no
apologies to anyone. In my opinion,
the best possible has been done with
the assets and the business of the
company, both in the growing and SELL
ing of oysters.
I can explain best the present situa-
ton and causes that have led up to it
by stating how l became interested in
this company and my subsequent con.
nection with it, especially as my story
is very much that of my fellow>direct-
ors.
Some time during the spring of 1910,
a business man of prominence ap-
preached me and said that he had
what he thought was a splendid propo-
sition and asked If l would not look 1t
over. l begged to be excused, saying
| had not the time to look into any.
thing. He then said, Wont you do
it for your friends !"'If Two of your best
friends here in Boston think this pro-
position is sound and will be glad to
put money into it if you will pass on 1t
as a good proposition" Because of
this l consented to Investigate. AS a
result, Mr.. Brooks came over to e
me and / spent two or three hours
talking i've the oyster proposition
with him. 1t struck me as being an
excellent one. Please let me say right
here, / believe Mr.. Brooks considered
that every statement which he made
was absolutely true. l believe Mr..
Brooks is, and always has been, an
absolutely honest man-but he is a ire
medous optimist, and that combined
with persuasive personality makes him
often deceive not only himself, but his
friends wholly unwittingly.
At that time we looked up Mr..
Brooks carefully and received nothing
but the best accounts of him. A West
ern friend of mine, on whose Judgment
l relied, told me in reply to a personal
inquiry that he considered Mr.. Brooks
the ablest young man in the Middle
West.
Following this, we made visits to the
oyster properties, looking over the
beds and the way the business was
managed, and the proposition seemed
to be perfectly sound. AS a result, |
became a stakeholder in the company
along with my friends of whom l have
spoken Things went along favorably
and reports as to profits were excel
lent In the fall of 1910 Mr.. Brooks
proposed to enlarge the company by
buying other properties
On the strength of Mr.. Brooks recon-
m%endations, supported by those Of
Capt. F. S. Beardsley and other oys-
termen, as to benefits and profits to-
be derived in additional properties, an
issue of preferred stock was author
lied, to provide the necessary money.
This issue of preferred stock aggre-
gated 10000 shares and. was u%nderwrit-
ten and offered for sale through Horn.
blower & Weeks, as agents for the
underwriters. The underwriters had
the option of taking over their proper
ton of the stock underwriting and
many of them did so.
AS an indication of the opinion of
those interested in the property at
that time, I will say that certain par
ties offered Mr.. Brooks $50 per share
for a substantial block of the common
stock of the company, but Mr.. Brooks
refused the offer. / was so pleased
the prospects of the company that
l took 100000 OF the underwriting.
This underwriting was all taken up, in
fact, there was not enough to 20
around. l took up and paid for all
the stock l had underwritten, not al.
any of it to be sold, although
| had appeals from many of my friends
to let them have some of my under
writing.
AS soon as the stock was all placed,
a new board of directors was elected
the oyster company, consisting Of
Messrs. L. c. Brooks, G. L. Brooks,
Henry H%ornblower, Alvah Croker, An !