The weekly Iberian. (New Iberia, La.) 1894-1946, 1920-06-12

the broker four dollars, and cost us
one dOllar-which we've already got
back from the brokers, and we've still
got the half Of those 10000 shares Of
ours left besides! So here's the final
balance sheetw He hastily tota!ed
the list, and handed II over to Cullen.
Capitalization 1900 0OO-2oO,ooO shares at
$40
Stock paid to individual
owners Observation-Disclosures. 200 shares
Stock sold to syndicate for
$l2u.OW .........................12 900 shares
Total .......,..................20 200 900 shares
OF our 10000 shares
We sell to brokers'. .... 10000 shares
Leaving NEUTRALITY-SUSPICIOUS.. $1,000 shares
We give brokers two year
option at IS apiece on...... 10000 shares
Leaving NEUTRALITY-SUSPICIOUS.. 900 shares
We pay lawyers, experts etc. 10000 shares
Leaving .................. 10000 shares
"And that balance Of 10000 shares"
he said, belongs to us three. The
brokers are making market and es-
price; and In order to pro-
tect themselves, they can't afford to
let the stock sell under the price
they're charging the public-because
If they did, the public wouldn't buy up
the rest Of what the brokers have to
sell, but they'd buy 1t in the open mar
ket. SO the brokers protect the mar
ket by what's considered perfectly
legitimate means, although some folks
call it manipulation, and they keep the
price up by main strength until the
first dividend Is paid, and after that
they don't have to worry, because now
everybody sees what good thing it is,
and flocks in to take advantage of 1t,
and the quotations jump up to twelve
or fifteen. Everybody's made money
the brokers have made theirs; the pub
lies making theirs, and when the price
s right the syndicate sells in open
market the 10000 shares 1t had left.
and you and Angela and I have each
made a quarter of million dollars
without really risking single cent
Because, as l said, we got our money
back right at the beginning"
Angela, who had followed the in
ricacies Of the setup with the liveliest
interest. turned pale; and Cullen's jaw
Jagged. Hilliard, returning his foun-
ain pen to his pocket with the utmost
had no more apprehen-
lion left In him, for Cullen had swal- |
owed the bait whole. Cullen, Average
Nan that he was-a good enough |
manager of his own small enterprise,
tut woefully ignorant Of the financial |
world at large-Cullen coughed rasp-
ngly.
IT'S a very pretty picture, but sup
,ose the market never goes up?"
ut will as soon as there's dividend
n sight; that's inevitable. And even
1t stays pegged at seven or eight,
here's a huge profit for us, isn't
herew
But suppose there's never a divi-
end|
"Don't we know there will be?
,idn't say we control the board of
irectorsY'
But suppose you can't find brokers
D."
Hilliard gesticulated broadly.
"Why, as a matter of fact, we don't
are very much if we don't! That's
he commoner method. and that's the
-ay to get our money back almost at
nee, and then play on velvet But II
lstead Of working through brokers.
re were willing to tie up our capital
little longer we'd make considerably
,ore money In the long run, az you
an plainly see We'd advance our
undred and twenty thousand dollars,
ait until dividends could be declared,
nd then get the stock listed on the
urb and begin to feed 1t out to the
ublic through fiscal agency. There'd
: twire m much In Il for us, but we i