The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-05-21
Mr.. J. L. Davis, Editor
Caldwell Tribune,
Caldwell, Idaho.
New York, May IL, 1915.


Dear Mr. Davis
am receipt Of letter of May LIST asking opinion
gardng the Empire Home Company, which
intention of many your their in
the bonds Of this company After rather detailed examination the
prospectus issued by this would have hesancy
answering your question to its being sound SAFE and practical
the negative
understand of course that the most important con-
sdeaon matters of this kind the
who the head of this company unquestonabe
tegty and they sufficient to make good
their promises is reasonable to that whatever they offer
they will carry through As the
better opinion this of the distance
it is rather difficult to give you any advice on score
would like however call your matters in
the prospectus which do not fair and reasonable
In comparison No. 1" of $1,000
home $295525 This however figured per
but if you ask of local lawyers he you
legal rate OF interest in per cent In carrying this comparison
the that by their $1,000 would cost
only S994o In other words they will $1,000 in
payment sum less than this by So How they do this bust
ness proposition is more than is the surface
: IN comparison No. = the company takes the of
Building Loan Associations charging interest at
cent these figure yearly
by the borrower each month the Immediately
the borrower and this which they
Loan Associations charge loan these
earnings reduce the 81 per cent Con
slider also that Building under the usic
ton the State Banking Department permitted
duct their any way they fit Therefore comparison
No. is properly Building Loan method
does not compare unfavob that shown Company
In comparison No 3" the Company the usual rate
of interest 10 which illegal this same
comparison in figuring the total local
bank the Company figures $1,000 each while showing
their advantages they figure that $500 paid
Just be made
person that equal conditions should prevail That
each the local bank be collected is
not 9oOO ms unfair unfair
sons look suspicious.
Now consider the standpoint of the investor
who asked to buy the bonds of the by the
company that after the of $40 the
investor will receive $780, $500 profit If the investor
had placed $40 in the savings bank at
eed the end of 100 months $2l3O In $1,000
therefore, the interest be AZ per cent In
other words the
at per cent How business can be conducted this principal
: difficult to understand
The of lower Of ;r+o
not by any means proposition but which
basic principals of paid on loans are that the more
liquid the security Chat is the readily CASH
the lower is the interest
Farm lands of value only when producing and unless
hands OF those who make them advantage
hy are not liquid security That why interest
have always been higher than those demanded of business
men and merchants who are able which
transformed INTO cash should become The
rich Monetary Commission Reserve Board State
Local Commissions and bankers who the country
at are all ANXIOUS to relieve the farmers burdens but
be done in scientific willing lose money
aburd business standpoint and cannot nos
sb be done Phanhropis who plenty money and are
one hand to be Id f upon the investments on the
hand has little chance start with consider
able capital they of course keep going capital has been
emily p
In its circular the Company states that its
auhorzed capital $5OOO 1t does however how much
this capital subscribed paid 1t only the paid in capital
that can be actually work !
have somewhat this mater and perhaps
you dissent from of the have made; but LEI
me again refer to original namely that if men of
unquestionab integrity and reliability
sound business judgment and experience and conduct
the affairs OF this company their great deal
but somewhat studied examination not look
10 DC Ta very sale investment to men of limited
The bo,d.
the east will be hroughtto the
teety that
DC hoaed IN eastern financial
PROMPTED from investment by the and the life in
companies financial institutions of cyo @
eripton Private investors have so many excellent 90
pones nearer at home that they will hardly to put their
funds into such proposition " - !
You perfectly welcome quote my remarks ON This subject
il " ' ''''N'
Yours truly
w, S. COUSINS Editor.
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