Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1915-01-01
HOW FAKERS ABUSE
COOPERATIVE PLAN
STOCk.SELLING SCHEMES AMONG
FARMERS ARE EXPOSED-
DETAILS TOLD.

: (From the Northwestern Merchant J
Stock promoters have recently been
canvassing the Wenatchee valley for
the sale of stock in alleged CO.
operative stores in Spokane and Se-
attic, claiming to prospective pur.
chasers that by purchasing stock in
these stores they would be enabled to
buy all necessary supplies, from gro.
cerles to orchard tools, at greatly re-
duced prices. Thorough investigation
has been made of both these concerns
which results in showing them to be
purely stock promoting schemes.
The agent canvassing for sale OF
stock in the Seattle concern claimed
that the company had 100000 be
hind it. If he had added "on paper"
he would have spoken truthfully. An.
other assertion he made was that the
stock of the Spokane concern, which
shows par value of $40 per share
was now worth 500 per share anG
that this was wonderfully successful
enterprise.
! Tells of Spokane Concern.
A signed statement, made by the
president of the Spokane concern in
January last, and which statement
by the way, was given the best show.
ing possible for the purpose of trying
to boost its credit, disclosed that
1854 shares of stock at $40 had beer
issued up to that time, showing a
total value of $113,O8O. At the same
time officers of the company were en-.
deavoring to sell and actually were,
under what amounted to false pre-
lenses, reselling this stock to farmers
for $50 per share, but in no case has
anything in excess of $40 per share
reached the treasurer of the corpora.
ton.
The corporation also had contracts,
but evidently with it's own officers or
dummies, for the sale of 3,245 shares
at $40 each, which would produce a
total of $64,900, or a total of stock
sold and contracted for of $177,980,
| leaving over $4,000 worth of stock
still unissued. The statement further
| shows that of this total of $177,9S0
worth of stock either issued or con-
tracted for, the unpaid subscription
on the same amounted to $143,950,
so that the total cash really received
by the corporation for the sale of all
the large block of stock up to January
21, 1914, the date this statement was
made, was only $4,000.
Notwithstanding that this concern
does strictly cash business and has
sold or contracted for sale nearly one
third of it's capitalization, it still owes
$4,000 on its building, which is
worth approximately double that
amount and owes over $4,000 on
open accounts payable.
What Agency Says.
Report of one of the big mercantile
agencies says:
"While this company possibly repre-
sents some net worth, authorities are
of the opinion that until the outstand-
ing obligations are materially reduced
they do not feel justified in placing
any estimate on their worth or in rec
ommending general trade accommo-
dations."
The Seattle concern is controlled
by the same man who has the con-
trolling interest in the Spokane con-
and it's general reputation in Seattle
is that the company was organized as
a stock promotion scheme. AS stated
above, it's capitalization on paper is
s5OO.O0O with stock based at a par
value Of $40 per share.
The stock selling agent who worked
many of the ranchers in this valley
claimed that the business was so prof.
table that the stock was now worth
$40 per share and sold number OF
shares at that price. On this basis
the beautifully Autographed stock
certificates of this company, when
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