The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-05
les HEAD STILL BELIEVES
HIS COMPANIES WILL PAY

learned that IN agent of the textbook
company In a Western city was boom
ing some OF the outside stocks and was
using my name TO do It. The moment.
however. that | heard of that / i'm
mediately put a stop TO II.
AT various times I learned that per-
sons who claimed to be representing
me went to stockholders In the Text
book company and the I. r. p. and
urged them to sell or exchange their
holdings, which then were paying d.vi-
dends. for stock IN the new companies.
/ Immediately took steps In every In
stance to tell the purchaser OF the new
stock that l was being misreprescnted
and made arrangements to have the
original stock returned 10 the man II he
desired Il.
Il never sent out CIRCULAR letters TO
students OF the correspondence schools
urging them TO invest In the stocks of
these various enterprises. 1t is true
that ! wrote TO friends OF mine at the
time OF the organization OF the Lacka-
wanna Coal Company. advising them to
buy. but they were not students of the
schools. Finally l decided that this
was not a wise thing to do, and bel,ev-
ing that my letter might be used for
purposes Of misrepresentation l stopped
4.
onc y to Rule.
There was only one exception to my
rule OF not using the sales agency OF the
textbook company to handle the stock
OF the outside companies. That was Ia
the case OF the Hover Incubator Com.
pany. which controls the largest poultry
farm in the world. The company gave
the textbook company 500, 600 of pre-
ferred stock in return for Advertising
which II G<DpNfp1 70 uat for I've ,,rpAs,NtS
I permitted tho sales agency 10 dispose
OF 100000 Of preferred stock In that
company. but that was ALL"
Mr.. Foster explained in detail from
memor the capitalization of the differ.
ent companies. the amount OF preferred
stock and bonds sold.
In every case in the outside COM
panies," he said. " the common stock
was given as a mi My stand was
that everybody should have an equal
chance to share in the success OF the
company"
Mr.. Foster. of course, did not refer to
the textbook company. which has only
common stock. or TO the ]. +. p. which
gave some OF the common stock as
bonus with the preferred and also sol!
some OF the common.
Another thing" said Mr.. Foster,
people believe that l am a millionaire"
lie stopped ana smiled.
Well. l am far from it. have my
holdings In the Textbook company l
own some bank stock, hut. as you must
admit, my holdings in many OF these
companies at the present time would
not bring much.
Has Bought Up stock.
Yet I am a believer in those com
panies and ! have bought in the open
market many shares of the common
stock, which originally was given as 4
! bonus with bonds. | have 90, 600 shares
! Of the common stock of the Lackawanna
Coal and Lumber Company. for / believe
that property is worth 1926, 00O. 900. Why.
that is how Harry Thaw's father made
his wealth. out of coal properties"
Returning TO the education companies
which at the present time are the grea,
concern of the bankers of Scranton. Mr.
Foster said he expected To effect big
savings within a month. He explained
frankly tina he had asked FOR a loan NJ
$500. 600 from the banks, hut said tina,
by July Is he would begin to make a
saving of $50 600 a month. and by cut
ting dow or the preparation of text
books he would make a saving OF 500.
400 a month.
lie admitted that the Textbook com
pany had been spending money freely
lDdt II nHu gwen llHdVtldl support u
the International Educational Publish
ing Company. which in England alon,
had suffered a loss of 81, 900, 900 becaus
of the war.
The Textbook company has been II
difficulties for several months, MI
Foster tried to borrow money in New
York and in Philadelphia, but was re
ferrcd back TO the Scranton banks, TIL
situation become desperate last week.
hanks Agree to Help.
The bankers of this city realized ina
the schools employ 1000 persons Il
Scranton, with n payroll of 500, 900
that the collapse of the schools woul,
be a big detriment 10 the city. The,
arranged TO have some of the bank
advance $500. 600 on the understandin
that the banks should be represented Il
the directorate of the !. r. and tn
|. T.. L. as they are called. and tina
there should he general retrenchmer
all along the line. Three OF the hank.
however, declined to advance their pr
rata share. with the result that tn
100000 fund Is still $50. 600 short.
Mr., Foster says his salary of SEQ. 90
viii be cut 10 per cent. and that ~
same rule will apply TO all persons earn
ing more than $40 a month.
There are hundreds Of persons I
Scranton and vicinity who hold stock |
the educational companies and in IN
other concerns. Many Of Fosters en-
ployees bought stock in the texthoo
company several months ago. borrow
ing money from the banks. With IN
increase Of Mr.. Fosters troubles tn
banks began to call the loans or Sc
the stock, with the result that the sav
, ings OF many persons have been wipe