Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-03-19
|. c. s. UNDER FIRE
IN MASSACHUSETTS
Scranton Correspondence School
Corporation Affairs
Attacked.
LOST 100000, Says AGENT
Former Representative in Bay
State Legislature Refers to
Sale of Stock as "Wild
Cat Scheme"
LOST 100000, Says AGENT

| Boston, March 13.-Sharp criticism and
vigorous defense of the International Cor
| respondence Schools of Scranton, Pa, and
their relations with corporations which
have a capital of more than sl0ooO0,Ooo
were voiced before the legislative COM
mittee on mercantile affairs to-day.
1t was claimed that the cause of educa-
ton was being prostituted for the mar
ketlng Of stocks through agents of the
scholarships. on the other hand, friends of
the schools scored its opponents as inter-
ests for material reasons in lnjuring the
stocks in question and fatty denied that
the schools had any physical connection
with the other corporations.
| The committeeman showed much inter-
est and expressed a desire that both sides
submit evidence of the claims made.
The bill under discussion was drawn
| by former Representative Clarence A.
Barnes and would require all correspon-
ence schools to file a copy OF their by
laws and charter at the state House I'M
der penalty, and make It possible for vic
| tins to recover damages If they suffer-
| ed through false representations by agents
or advertising conflicting with the papers.
It specified that a bond Of $4,000 be filed
SAY BILL AIMED AT SCHOOLS.
While the bill was general, it was the
claim of the international Correspondence
schools representatives that it was aimed
at them so they objected to it only be-
cause of the spirit behind it, favoring thu
III Go, -toff
The first of these schools, said Mr.
/ Barnes was opened in Scranton in 1892,
with 10000 capital. In 1891 the capital
was made sl5o 900; in 1895, s25oO00 in 1897,
$4,000. in 1898, 100000 and in 1912 the
International Text Book company had
s., 600 900 capital.
| a number of companies were named as
having upwards OF slOo,0O00O0 of capital
and Mr. Barnes claimed that all of these
We're owned or controlled by the prime
movers of the schools. The companies
marketed their securities. he said, by
stock statesmen working through the per-
sons who sell scholarships and live tips
on prospective buyers. Mr.. Ba rnes said
that it was about time for the Legisla-
ture to take notice of such wild cat
schemes"
| J. Affleck Robertson OF Cape Town, who
was the agent for the schools in Africa,
claimed that he had been ousted unfairly
and had lost about 100000 as a result. He
had come here he said, to get justice and
save the public.
CAPITAL OF s20OOO,OO0
I'm 1902" ne said, IT entered into a con-
tract with the International Text Book
company, proprietors OF the International
Correspondence Schools of Scranton, to
act as general manager for the company
for the whole of Africa. Some time In
1909 / was requested by r. J. Foster TO
handle in addition to the scholarships the
sale and exploitation OF correspondence
securities. On May II. 1905, the Interna-
tional Educational Publishing company
was formed with capitalization of so,
100000 the sole asset OF which consisted OF
business in Africa. England, Australia
New Zealand and the FIJI islands placed
on the books of the I. L. F. c. at s2,999,-
555 although Africa cost them nothing, in
fact 1t showed a clear profit to them of
$4,000; while had lost $4,000 at that date
refused to put out these securities
among my students and the public un-
less was furnished with a certified COPY
|
the expenditures and revenues OF these
companies"
Rev Joseph II. Odell until recently g
member of the school committee of Scran
ton, opposed the bill. Nothing would
please the school better" he said, thar
to have the matter referred to the com
missioners OF corporations and education
Every facility would he given for gettini
at the books which are audited at reg
ular intervals by leading expert &C
countants"
, He attacked the motives of Robert
son, and also said that 1t was preposter
| Gus to charge that the school owned OF
was interested in these other companie.
because its officers were interlocking di
rectors In some other company.
PRESIDENT SPEAKS
Scranton, Pa. March 13.--T. j. Eos
, ter, president of the international cor
respondence schools. late tonight is
sued a statement on the Legislative
) hearing in Boston to-day at which
the schools and the companies were
? attacked. He details the work of the
schools and in direct reference to the
Boston charges says:
| INT International Text Book company
owns the International Correspondence
schools and has no objection to the pas
sage of the Massachusetts bill. The cash
receipts of the schools since they were
esta blished in 1891 have exceeded sS7, 900.
600. To conduct such a business a capita
of $S,500.0O0 is required.
THE International Poultry Sales com
pany is not owned by the students OF
the schools, All the capital received fol
it Is invested in the business.
y. Affleck Robertson is a discharged
, and dsgruntled employe who claims tc
have grievance against the company
His case was tried in the courts of Cap,
Colony The company paid him the bal
ance of $50 due him by the decision of tn,
referee, He attempted to interfere will
the schools there and was ordered b,
the court to deslst "