Western liberal. (Lordsburg, N.M.) 1887-1919, 1918-02-08
The Truth About The
Mail Order House

1nore Us one way 90 Uabe money by
dealing with the mai-ordcr houses but
81 Isn't by buying goods from them.
The man who thinks he Is making
money by tuying his goods from mail
order houses has only to read Of the
umazing profits made 10y some of these
big corporations To- realize that all the
money is being madc hy the man on
thc other end Of the deal.
The s%tockholder I'm a big mail-order
concern tolls not and neither does nc
spin. but he piles up his money so fast
hat Il makes the ordinary mans head
swim TO read about e.. Here Is the
experience Of the stakeholder IN one
Of the large m%ail-orler concerns, as
told by q reliable financial Journal. II
gives a glimpse into the inside work
lngs Of the mail-order business that
should be of interest to those who
have made such things possible.
How the Game Works.
In 1908 this man bought COO shares
Of stock in the mail-order corporation
In question when the stock was selling
around so a share, the 600 shares
costing him q little less than $4,000.
In 1911 the company declared a stock
dividend Of 33 1-3 per cent. In other
words the company after paying cash
dividends regularly, had accumulated
n surplus profit OF one-third of the
amount Of capital invested In the
business; but instead of distributing
this profit among the stockholders the
company kept the money IL the bust
ness and issued stock for that amount
TO the stockholders. By this action
200 more shares Of stock were issued
to the man who had originally bought
GOO, increasing his holdings to 500
shares. without his having Fut any
more money into the business.
Another stock dividend Of 80 per
cent was declared IN 1918 and his
added 400 shares more 10 his holdings,
giving him 1900 shares in all. A third
stock dividend of ~ per cent was paid
early In 1917. bringing this mans
stock holdings up to 1900 shares, still
without his having paid IN any more
money. on this 1900 shares Of stock,
cash dividends of So a share are now
being paid. |'his investor therefore
Is now receiving $4,000 Il year from
his original Investment OF about S2j,-
600, and as the stock is now worth
around S1G0 n share, the present mar
kpt value of his stock is $4,000. Civ
ing him 1t profit of S21j,O0O, In addi-
tion TO cash dividends which he re-
ceived during nine years. amounting
to many more thousands Of dollars.
Only One Of Hundreds.
This IS the story Of just one small
stakeholder In one m|uil-ordcr concern.
A profit of more than S21j,O00 made
hy one small stakeholder IN nine years
on an investment of less than $4,000!
il reads Ike fiction but It Is financial
history. There nre hundreds Of ether
stockholders I'm his and other mail
order corporations, some of whom
have made millions while this man
made thousands. Add the profits 81
all these stockholders together and the
result is a sum that staggers the imag.
inason.
SmGn wonder that the men who own
the stock Of the big mail-ordcr houses
can live IN palaces, ride IN the highest.
priced automobiles, ovn palutlnl pri-
waite yachts and buy 100000 paint.
ings. But who has furnished the
money To- pay for the palaces and the
automobiles and the yachts and the
100000 paintings? The people In the
country and the small towns who have
kept an endless stream OF money how-
ing Into the Golfers Of the mail-order
h.frgaa I.rr. mall. all clio naueF11.
Their millions of dollars have gone to
the big cities to build up these great
concerns. Their millions of dollars
have provided The automobiles and
yachts and other luAUrlos for the
stockholders In these corporations.
Present From Hail-order Buyers.
These men who have piled up such
big fortunes ia the mJil-order bust
ness have not even had 10 pay for
much of the stock from which they are
now drawing priaccly dividends, The
people Ia the country and the snail
towns, generous souls, have bought Il
for them. This IS shown IN the case
Of the stoclJlolder Just mentioned, who
originally invested. The generous
mail-order buyers have made him a
present OF $4,000 worth Of stock and
he has tot had 70 turn BIS hand over
10 get Il. He has never even had 10
so much as write O letter 10 get IT,.
The generous m%ail-order buyers have
hauded'it 70 him on q golden platter.
There's money In the ~mall-order
business without a doubt, but It's on
the side Of The man who does the sell
ing and rot the one who does the
buying, II you aust DO business with
the Lsnll-ordcr house buy some Of IFS
stock and let the fellow a. tie next
town buy you nutcrio5lies and private
yachts while ~ s,ruEeies with the
Land tmos that come FROM draining