Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-05-21


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 Sheet" He hastily totaled
the list, and handed it over to Cullen.
capitalization $1,000 oO-2OO.OOo shares at
$40.
Stock paid to individual
owners Observation-Disclosures. $1,000 shares
Stock sold to syndicate for
$4,000 .....................12O,OOO shares
Total 200, 600 shares
OF our 10000 shares
We sell to brokers'. -. $4,000 shares
Leaving Observation-Disclosures. 10000 shares
We give brokers two year
option at IS apiece on...... 10000 shares
Leaving ....................... 10000 shares
We pay lawyers. experts etc. 10000 shares
-----
Leaving ..,S..................6 10000 shares
land that balance of 10000 shares .
ne said, belongs to us three. The
brokers are making market and es-
tablishing a 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 1t 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 1t is.
and f1ocks in to take advantage of it,
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
is right the syndicate sells in open
market the 10000 shares it had left,
and you and Angela and l have each
made a quarter of million dollars
without really risking single cent |!
Because, as I said, we got our money
back right at the beginning"
Angela, who had followed the in
tricacies of the setup with the liveliest
interest, turned pale; and Cullen's jaw
sagged. Hilliard, returning his foun-
tain pen to his pocket with the utmost
nonchaIance, had no more apprehen-
sion left in him, for Cullen had swal-
lowed the bait whole. Cullen, Average
Mon that he was-a good enough
manager of his own small enterprise,
but woefully ignorant of the financial
world at large-Cullen coughed rasp-
fngly.
cts a very pretty picture, but sup
pose the market never goes up?"
st will as soon as there's a dividend
in sight; that's inevitable. And even
if it stays pegged at seven or eight.
there's huge profit for us, isn't
thereY'
"But suppose there's never divi-
dend?"
"Don't we know there will be?
Didn't say we control the board of
directors?"
"But suppose you can't find brokers
to"
billiard gesticulated broadly.
"Why. as q matter of fact, we don't
care very much if we don't! That's
the commoner method, and that's the
way to get our money back almost at
once, and then play on velvet. But if
instead of working through brokers,
we were willing to tie up our capital
= little longer, we'd make considerably
more money in the long run, as you
can plainly see. We'd advance our
hundred and twenty thousand dollars,
wait until dividends could be declared
and then get the stock listed on the
curb and Begin to feed it out to the
public through fiscal agency. There'd
be twice as much in 1t for US, but we