Evening journal., 1916-03-27
L.C.S. Students NOW.
Face A BIC Loss
Shareholders in T. ]. FOs-
ter'S Companies Likely TO
Lose Investments
FAILURE OF CONCERN
CARRIES OTHERS DOWN

tAKklEN " f1EkS DOWN ~
SCRANTON. Pa. March 26.-Stock-
holders OF the Lackawanna Coal and
Lumber Company and the Coal Lands
Securities Company. hundreds of
whom are believed TO have been form
or students OF the International Cor
respondence Schools. and to have pur-
chased the stock on the strength Os
President +. j. Fosters connection
with the companies, will be the main
losers through the sale OF the hold
ings Of the Paint Creek Galleries
Company in Charleston, w. Va, last
Monday, TO Colonel L. A. Watres, rep
resenting the bOndholders' protective
committee for 100000. This is due to
the fact that the three companies were
closely interlocked and that both of
the former were large holders of the
common stock of the Paint Greek
Company. which will probably be
wiped out by the sale.
The Paint Greek Company went into
the hands of receiver on May 20 OF
last year. on petition Of the bond
holders, the company having default
cd i'm payments of interest from Jan
uary /. 1918. W. l.. Connell. president
Of the company and one Of the Organi-
zers. was named as receiver. At the
time of the receivership Connell was
authorized to issue receivers certif-
Gates. and about the same time the in
dependent bondholders. representing
about two-thirds of the S3.0OO.0O0
bonds issued by the company, enioin-
ed the company from disposing of
some OF the leases on coal lands held
by II.
Connell failed TO raise funds by the
sale of receivers certificates. and the
property was sold Monday. being bid
i'm by the bondholders' committee. Ap-
parently this climates the COnnell-
Foster interests. and along with them
the Lackawanna Coal and Lumber
Company and the Coal Lands SecuIi-
ties Company
When Paint Greek stock was first
offered TO the public In 1908, il did not
sell as rapidly as its promoters hoped
for. and accordingly they decided to
sell il 10 the Lackawanna Coal and
Land Company. which had been newly
organized. Accordingly they took
81 900 worth OF the bonds and the
entire S5.O00.0O0 worth of the common
stock issued by the Paint Greek Com
pany and placed them i'm the treasury
Of the new company. and they are
now part Of the assets Of the coal and
lumber company. This was simult-
taneous with the exchange by the coal
and lumber company Of it's bond and
stock holdings in the Crescent Goa
Lumber Company and the Coal Valley
Land Company. two subsidiary con-
Germs. for the new bonds of the Lack.
awanna Company. which left $780,
GOO i'm treasury bonds of the latter
company. TO he sold to raise working
capital
These bonds were disposed Of
through the selling organization OF
the International Correspondence
Schools. and for about year weni
pretty well. But in 1912. there came
falling of in sales. and then the
Connou- Foster interests organized the
Coal Lands Securities Company, Will
Connen as president and Foster as
treasurer. IL was capitalized at SO.
OOOOCO and the same selling agency
was used 10 dispOsee OF the stock
the proceeds beeing Invested II
the bonds Of the Lackawanna Coal an'
Lumber Company. which owned all o
the the stock and one-third of thu
bonds Of the Paint Creek Company.
Students Of the correspondence
schools were canvassed and recan
gassed in efforts to unload this stool
and the bonds Of the Lackawann'
Company, and many holders o
Textbook stock were persuaded
TO exchange their holdings TO
the new securities. the bond ant
stock statesmen being furnished wit
lists Of the students and stockholder
to aid them i'm their work. II is al
legged that between the organization O
the Coal Lands Securities Company j
1912 and January !. 1915. more tha
100000 worth OF the securitie
stock were sold i'm this manner tn
proceeds being invested i'm the bond
Of the coal and lumber company.
The failure of the Paint Greek Com
pany virtually carries with it the Othe
Two companies. J. X. Griffith. vice
president of the two concerns, calle
upon stockholders to raise the sum q
100000 within seven days after tn
receivership of the Paint Creek Com
pany was announced TO put the Pain
Creek and Lackawanna Coal an
Lumber Company into good hnancis
working condition They have faile
to raise this sum and the consequenc
is that those who were persuaded
purchase Lackawanna Coal and Lun
ber bonds will lose whatever they II
vested
"TRAIL HITTERS- At FIRST.
rhn rnnn,. rnnniinr In the Eirs