The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-05
Continued from First Page.

Continued from First Page.
$4,000. 900 preferred stock and about
$4,000. 900 common stock In the |. e. j.
for the foreign rights to our textbooks,
the use OF our plates. We not only
sold through our selling agency part
OF the stock which the textbook com-
pany had received for its rights. but we
handled stock FOR the foreign company.
Limited selling Agency.
Outside the work that the selling
agency would have done for the Edu-
cation General Corporation In selling
stock n outside Of selling stock of
tho Hover Incubator Company the
selling agency OF the textbook COM
pany never handled any OF the othe:
stocks and bonds Of the other compa-
MES In which 1 have been Interested.
AZ a matter OF fact / absolutely for
babe our agents In the field to handle
the other stocks and bonds"
Mr.. Foster then went on to explain
the purpose OF the Education General
Corporation. a concern with 100000. 900
capital which he and his associates
have organized with the idea of teach
ing domestic science to women. such as
sewing. dressmaking. cooking and the
like. The stock OF that ompany was
TO be controlled by the International
Educational Publishing Company. which
Ia In turn controlled by the International
Textbook Company. He admitted that
he had sold a little stock In the new
company. but the need OF money for the
| textbook company had compelled him
to give up for the present tho project
OF financing the third educational en-
terprtse In which he hoped to appeal to
1 the milliOpR of women and girls In th.
country.
War Stops Dividends.
Those three enterprises represent q
par value OF $50, 900. 900. The textbook
company and the foreign company both
paid dividends last year. The war hi,
the foreign company so hard that 1;
was compelled TO pass its dividends
The textbook company has been an ex-
cellent money Garner. having paid more
than $1,000. 900 in cash dividends and
$l,s75,O0O stock dividends.
The prosperity OF the textbook com
pany. its rapid growth and the increase
in capitalization won such a reputation
for the Foster enterprises that wher
the International Education PublishinG
stock was offered five years ago II was
taken up eagerly by students who knew
OF the growth OF the first company
Then when the sock in the second com.
ANY began to pay dividends the fane
OF the correspondence schools as an ex-
cellent investment spread wider and
more effectively than ever.
In the meantime Mr.. Foster had been
earning 100000 "a year salary as presi-
dent of the correspondence school com
panies and had been drawing dividends
from his textbook company stock. He
did not think. apparently, that he ought
to invest more extensively in textbook
stock. as he was advising his friends
and students to DO. lie decided 10 pu
his money in other fields. Why he
looked to other places for investment he
refused to say to-day. At any rate he
and his associate officers in the CORE.
spondence school companies began &c
pour their savings into new fields,
Formed New Companies.
The result was that Mr.. Foster and
his friends bought up or leased proper
ties or other companies and began tt
recapitalize them, Only one Of thes'
companies Is paying = dividend now anC
many of the companies are In need Of
money to tide them over the presen
stringent times. One of the companies
is In the hands of a receiver.
AZ soon as the new company wa
formed the bonds or the preferred stool
were offered to the public with the ION
mon stock as "A premium. Many per
sons say that agents of the lnternationa
Textbook, who had been selling tn
stock in the education companies, Wen
around peddling the new stock. Their
IL no doubt that hundreds of persons
relying on the fact that Mr.. Foster wa
interested in the new company, bough
the bonds or the preferred stock. ex