The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-10-12
IS new STOCK
SALE VENTURE
BONA FIDE?
Information Concerning New
Steel and Iron Company
Indicates Speculative Ma
ture of Stock Offering.
WEAKNESSES EXPOSED

A campaign for the sale of stock of
the Silver Steel & Iron company,
which, according to a prospectus dis
tributed to prospective investors, pro-
poses to locate it's plant in Richmond,
has been in progress in this city for
several days.
Information concerning various men
who are behind this project indicates
that it is stock promotion scheme OF
a decidedly blue sky nature.
The Silver Steel & Iron company
was recently organized under the laws
of Ohio and, later, will be reincorpor-
ated under the laws of Indiana. The
company's prospectus shows all the
officers Of the concern are non-resi-
dents of Richmond. with one excep-
tion, Ray K. Shiveley, a Richmond
attorney, who is listed as attorney"
Mr. Shiveley stated that he was not
an officer nor a director in the COM
pany, that he had no interest in the
company, and that he had nothing to
do with the sale of stock
The capital stock of the Silver Steel
& Iron compony is 100000, with $780,
600 preferred and $150,0O0 common.
The promoters propose to sell the pre-
ferred stock issue in Richmond.
Get Big Commission
The promoters are to receive Is
per cent of all stock sales as promo
tion commissions. In the organiza-
tion of legitimate enterprises promo
tion commissions vary from one-half
of l per cent to 2 per cent on stock
sales. The plan usually followed in
the organization of such stock pro-
motion schemes as the the Silver
Steel and Iron company is said to be
for the promoters to help them
selves to exhorbitant commissions in
the disposal Of as much stock as is
possible, then depart with their loot,
leaving the stockholders to hold the
bag" which bag" generally includes
a partially paid for factory site and
an unequipped and unpaid for factory
building.
1t is stated that the Silver Steel
and Iron company promoters have Sc
cured as a site for the proposed fac
tory ten acres of the William J. Grif-
fin subdivision in West Richmond.
The prom represent that the
price for this property was $4,000.
1t is stated that the promoters have
actually made an advance payment of
$500 on the property and that the
deed for it is being held in escrow by
a local bank until enough stock can
be sold to pay the balance.
Listed as President.
Walter R. Munger is listed as pres.
ident and general manager of the
Silver Steel and Iron company Nun
ger has had an interesting career as
a stock selling promoter. About a
year ago he promoted a manufacture
ing concern in a neighboring Citv.
Three months ago the factory erected
for this concern was standing in sea
of weeds. Not a wheel was turning
in this plant for the very good reason
that there was no machinery in the
plant with which TO turn the wheels.
1t was also ascertained at the same
time that the company was threatened
with financial difficulties which the
stockholders were trying desperately
to solve. Mr.. Munger resigned as
an officer of the company some time
after the stock selling campaign had
been successfully concluded Having
received his promotion commission,
Mr.. Munger apparently lost interest
in the enterprise.
The other listed officers of the Sill
yer Steel and Iron company are S. C.
Ligett, vice president, F. C. Hem,
treasurer. E. L. Adams, secretary, and
William J. J. Miles, director.
None Of these men reside in Rich
mond, and very little is known about
them. 1t is stated that the promoters
propose TO have only two Richmond
men on the board of directors.