Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1915-04-01
State Charter Board COmpeis Some
Changes
TO DEPOSIT 100000 OF STOCK
Several Matters in Management Dc
Not Meet with Approval
Conditions Fixed for
Continuance


Botkin, and Bank Commissioner
Benson held three hour hearing OF
the charges against the Ball Manu-
featuring Co. which Is operating In
dickinson and other counties OF
Kansas. At the end It refused to
revoke the permit issued by the old
charter board in May, 1914.
But the charter board also re-
fused to indorse the innovations
along business lines introduced oy
Doctor Ball in handling his mall or
der business. Doctor Ball is to place
his half-million dollar promotion
stock in the hands Of the state bank
commissioner, with written stipu-
latiou that none Of 1t shall be sold
for at least twenty years, as a guar
antee that he will stick to business
and not sell out some day when he
is not feeling we'll.
A deputation Of retail merchants
headed by J. e. Brewer of Abilene
and A. o. olinger, secretary OF the
LYON county cooperative associa-
ton, appeared as compliments
against the company's methods OF
selling stock, and obtained an or
der from the charter board restrict
ing the company and its operations.
The company's chief place OF Dusi-
ness is at Hutchinson.
The company was organized ABOUT
a year ago by DR.. s. e. Ball. for-
merlv the manager and owner OF
the Ball Medical company, OF Fort
Scott. It was chartered in Delaware;
with a capitalization Of 100000.
OF this 100000 was retained by
Ball as promotion stock. The other
$500, 900 was placed on the market
as treasury stock.
Gets Permit to Sell Stock M
Then Ball, after locating at Kan
sas City, Mo-. and obtaining permis-
sion to sell his stock in Missouri,
applied to the Kansas charter board
in May, 1914. for permission to sell
his treasury stock in Kansas. Tne
charter board records show that ne
was given permission to sell $Se'-
900 worth of stock. He maintains
that the certificate issued did mott
contain any limit on the amount to
be sold in the state. The certificate,
issued by Carl Peterson. then In
charge Of. the blue sky department
allowed him to dispose OF any
amount, Ball asserts, and Sam Sea-
ton, now holding Peterson's job
corroborates his testimony.
At any rate some $250,00o worth
Of the treasury stock has been sold
in Kansas. This treasury stock IL
TO. draw per cent. After the Z per
cent has been paid. the promotion
stock. all of which is held by Bali
himself, may then draw 8 per cent
ANY further dividends go half and
half between the promotion and
treasury stock.
Balls Unique Scheme
Doctor Ball calls his company
commercial cooperative concern.
Its operations are based on the
proposition Of selling to stockhold-
ers, on the mail order plan, general
merchandise at wholesale prices. CO.
operative clubs are formed in diff
ferent towns, buying the goods In
carload lots.
Then Ball evolved further
scheme. His agents are selling GER
tificates Of commercial co-opera-
ton" BY the terms of these certiti-
rates the holder designates, for the
sum of five dollars year, that the
Ball Manufacturing company shall
act as his purchasing agest for a
year. These are sold to .non-stOck-
holders. The holders of these certi-
lficates are entitled to receive the
wholesale prices on goods furnish
/ ed through the company. but do not
1 participate in any dividends the
company may make.
The charter beard yesterday re-
fused to stand back Of these certi-
ficates Of commercial cooperation
Doctor BAH was put on the grill
| BY s. n. Brewster. attorney gen
eral.
4 There Is nothing In this arrange
ment to prevent the money receiv'
ed for these certificates being used
TO pay dividends is theres" asked
Brewster.
'sThey could be used for that pur-
pose, / believe" said Doctor Ball
'sThen, II Senator Brewer here
. AT