The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1918-05-16
HOME COMPANIES
GIVEN BIG BOOST
South Dakota Securities Com
mission Raps Concerns Sell
ing Oil and Mining Stocks.

TieIrc, -. u, May lS.-Tne annual
report Of the state securities commits
sion, popularity known as the blue
SKY commission, the purpose of which
BOARD is to examine companies desir-
ing TO sell corporation stock in South
dakota and pass upon its honesty be-
lore such can be done, Is inst issued,
and 1T points out the desirability Of in
Vesting in home elevator and OF
ative companies. showing them to be
very profitable--and on the other hand
AZ d~iscourages the investments in the
oil and mining stock companies, stat
ing that the total sun of money really
thrown away upon these enterprises is
a tremendous drain upon III re
sources"
The report says of the elevator and
cooperative companies:
From the foregoing figures
1t is amply shown that the small CO.
operative companies of the state are
being conducted or a profitable basis.
This Is especially tru of the elevator
companies. The reports show that
each elevator is using from $20,000 to
$500 of borrowed money obtained
from banks n commission companies.
Notwithstanding the payment OF con-
siderable sums for interest, the busl-
ness Is highly profitable. h leads to
the suggestion that much more capital
could be employed in these elevator
Nllao hS
for so much borrowed money n saw
ing large sums now being paid for in
terest. The commission has a right to
feel q pride in the success Of the CO.
operative companies. 1t means that
South Dakota people have the ability
to cooperate and make the best use
Of their combined capital and credit.
The facts also prove that the farmer
should realize that he can find a far
safer and more remunerative invest
ment at his own door and one that Is
very much better than the average
stock proposition offered by other cor
~porations. q
1t saws of the oil and mining propo-
sitions:
1.-The oil and mining companies con-
stitute one Of the serious problems be-
fore the commission. The total sum
of money really thrown away upon
these enterprises annually is a tre-
mendous drain upon our re-
sources. Our records show, however,
that this class of companies have been
reduced more 80 per cent In the past
few months, and from the same rec
cords it would appear that only in
special cases should any new ones be
admitted" 1t says further of the oil
and mining companies: There are
16 oil and mining companies upon our
records showing a total outstanding
capital of $7,535,61S. Not one OF
these companies shows q gain and no
facts are submitted which indicate
any great progress in the way OF ex-
ploration."
The report shows that log compan-
les made and filed annual statements
during 1917, representing a capital OF
$A9, 1854 5. A total gain on these
was $905,512 or an average OF l.S per
cent on the entire outstanding capital.
OF this total there were 3S domestic
corporations, engaged in operating
stores, elevators and creameries, with
a capital Of 1881. $40, the total gain be-
ing $110,310 or 80 per cent on outstand'
ing capital.
Twelve companies miscellaneous,
with total capital Of $21, 059, 256, showed
| gains of $795, 202 or 31a per cent on
capital. Under his head however, Is
included a report Of one Of the largest
light and power companies In America,
which sells stock here, consequently
the other IL it will be understood We're
small companies and the gains nomi-
nal.
Forty miscellaneous companies with
a capital totaling $21 ,112,7 51 report no
gains, and in many instances show
losses. and this materially reduced the
average gains as shown on all COM
panies.
AS noted about 16 oil and mining
which showed any gains.
The report in closing says Of sale Of
stock. ION the whole the reports show
that the sale OF stocks in the different
enterprises results in much waste Of
money and in idle capital. OF course
under the law 1t Is a question OF hon
esty and IL no actual or inherent fraud
appears the commission cannot sue
cessfully prevent sales. 1t would seem
however, that a more intelligent public
opinion would aid materially in curing
the situation, and 1t is therefore sug-
gested that the foregoing figures be
punilsned Tor b benefit Of the people
OF the state"