The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-06
SCRANTON SCHOOLS
FAIL TO GET LOAN
Syndicate Doesn't Hand Over
All Of the 100000
Subscribed.
4 MEETING SET TO-DAY
Reorganization Of Textbook
Company May Follow
the Developments.

the Developments.
SCRANTON. Pa. July 5.--1mportant
developments In the situation confront
ing the International espondence
Schools are expected here tomorrow.
tpn them may depend the entire re-
organization Of the International Text
book Company, the s10.oO0,0o0 concern
that controls the schools. and also Its
allied foreign company.
A syndicate II local bankers promised
last week to raise 100000 TO aid the
Textbook company. but not all OF the
100000 has been subscribed by the
banks to which a share was apportioned.
1t Is expected that the bankers will
have a meeting tomorrow and that
either then or on Wednesday there
will be a meeting of the newly elected
directorate of the Textbook company TO
work out the details for the trimming
Of operating expenses.
The affairs OF the Textbook company.
its associate company. the International
Educational Publishing Company. en-
gagged In foreign correspondence instruc-
tion. and the affairs of the many outside
industrial. mining and agricultural com
panies in which r. J. Foster the origi-
na,or and developer OF the correspond
ence schools system. was engaged, are
the chief subject ot gossip.
The Big Money ERrner.
1t is pointed out here that the Text
/, ok company has been the big money
Garner of all the companies in wnich
Foster was interested that the resources
OF this company with the great wealth OF
money poured into its Golfers from the
ambitious wage earners eager Tor an
education have enabled Foster to give
assistance to the |. 4. +. But Mr. Eos.
,er while admitting that he has helped
the l. r. T.. says that the Textbook
company never helped the outside cor
porations in which he Is interested
Examination OF the records shows
that the Textbook company. whose capi-
tai stock was about S6.0O0,OOO in 1910,
has increased its capital stock t. almost
sl0,OO0.000. and that the proceeds from
the sale of that stock have amounted 10
aluost 81 600 900 Furthermore. the
Textbook company disposed of some OF
the preferred and common stock OF the
I. +. p. thereby raising considerable
money. The question has been asked.
in view of the present conditions OF The
Textbook company, What became OF
this money?
Mr.. Foster, who 20 THE SUN re-
porter has evinced Willingness to dis
cuss every phase OF the financial arairs
Nd th.a nt th..r
concerns, insisted to-day that all the
money received from the sale OF capital
stock had been devoted to the company.
but admitted that part of the money re-
ceived from the sale OF the J. h. 4.
stock may have been used in the main
tenance OF the 10 per cent. dividend OF
the Textbook company. lie declared
that this was justified, as the |. r.. +.
stock held by the Textbook company
really represented earnings
Glad to Give Data.
I'VE have raised the capital stock
OF the Textbook company almost $1,000
OOO in the last five years he said.
and we got SIPS and more for every
share Every dollar Of that money has
been used for capital requirements. l
will be glad to give the exact items from
the books tomorrow when ! can get AT
them, but from memory can give you
generally the figures.
I'VE spent more than Sl,0oo,o00 in
the establishment of new routes and
more than 100000 in the starting of
new courses. Why, TO prepare course
I'm architecture cost MS more thau sso,-
OOO We spent probably SlOO,OoO In
working out the details OF the new do
mestic science courses and that was
lust preliminary work. Furthermore,
to h. II
Then, too, we put more than Sl,oo",Ooo
in the purchase and the upbuilding OF
the Victor Typewriting Company.
"To get better work out or our
students | devised "A system OF inspira-
tional letters and every year for the last
four years we have been spending more
than 100000 on that work. Part or
that also WAS really capital expenditure.
II is true that we may have used some
of the money that we received from the
sale OF !. l.. T. stock TO pay
dividends, but we were entitled t. do
that because We received the stock in
return for work that this company had
done"
Mr.. Foster explained that it was quite
probable that the Textbook company
''had been eNtravagant.' lie became
enthusiastic as he pictured the better
work he could do with the development
which now total 2jO
Gross Income Decreases.
Examinations of MOody's Manual
shows that since 1910 the gross income
has been slowly decreasing, that the
operating expenses have been going up
and that the dividend payments have
hcen higher II seems clear that Mr.
Foster has been adding more and more
persons to the employment list of the
Textbook company that he has been
reaching out more and more extensively
with his educational system and that he
also has been helping the !. r. p while
preparing AZ the same time to launch
the Education General Corporation,
which was to teach women and girls how
TO make their own clothes, To cook and
the ike
The three educational companies OF
which Mr.. Foster is so proud have been
woven together In an unusual way The
Textbook company did all the pioneer
work, prepared all these text books and
started the correspondence system in
foreign countries.
Then the International Educational
Publishing Company was organized with
"A capital of 100000. 900 10 take over all
the rights for foreign work from the
Textbook company. The next move that
Mr., Foster and his associates had in
mind was to launch the Education Gen
eral Corporation, capital SEQ, 900.
About s4,000,000 of that capital stock
was to go to the !. Il, =,
Meantimesthe Textbook company had
been working on the domestic science
courses, which We're to he transferred,
according to some understanding, TO the
]. T.. T.. and then sold to the Education
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