Imperial Valley press., 1920-06-14
(Copyrlght.0

lie mdu WIN lIluhS uc 10 ludhluS
money by buying his goods from mall
order houses has only to read of the
amazing profits made by some Of these
big corporations to realize that oil the
money is being made by the man on
the other end of the deal.
The stockholder in big mail-order
concern tolls not and neither does he
spin, but he piles up his money SO fast
that it makes the ordinary mans head
swim to read about 1t. Here is the
experience Of the stockholder in one
of the large mail-order concerns, as
told by a reliable financial journal. It
gives a glimpse into the inside work
ings 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 600 shares
Of stock in the mail-order corporation
in question when the stock was selling
around $40 share, the 600 shares
costing him little less than $4,000.
In 1911 the company declared stock
dividend of 33 1-3 per cent. In other
words the company after paying cash
dividends regularly, had accumulated
a 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 in the busi-
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
600, increasing his holdings to 800
shares, without his having put any
more money into the business.
Another stock dividend of so per
cent was declared in 1915 and this
added 400 shares more to his holdings,
giving him 1000 shares in all. A third
stock dividend of 25 per cent was paid
early in 1917, bringing this mans
stock holdings up to 1,5O0, shares, still
without his having paid in any more
money. On this 1900 shares of stock,
cash dividends of IS share are now
being paid. This investor therefore
is now receiving $4,000 year from
his original investment of about $25,-
600, and as the stock is now worth
around $16O share, the present mar
ket value of his stock is S240,000. Civ
ing him a profit of $215.000. in addi
ton 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
stockholder in one mail-Order concern.
A profit of more than $215,O00 made
by one small stockholder in nine years
on an investment of less than 25,C0O. !.
1t reads like fiction but it is financial
history. There are hundreds of other
stockholders in this and other mail
order corporations, some of whom
have made millions while this man
made thousands. Add the profits of
all these stockholders together and the
result is sum that staggers the imag.
nation.
Small wonder that the men who own
the stock of the big mail-order houses
can live in palaces, ride in the highest
priced automobiles, own palatial pri-
vate 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 flow
ing into the Golfers of the mail-Order
do oil yNnScihln
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 luXuries for the
stockholders in these corporations.
Present From MaiI.Order Buyers.
These men who have piled up such
big fortunes in the mail-Order busi-
| ness have not even had to pay for
much of the stock from which they are
now drawing princely dividends. The
people in the country and the small
| towns, generous souls, have bought it
for them. This is shown in the case
of the stockhOlder just mentioned, who
originally invested. The generous
mail-order buyers have made him a
present of $215,0OO worth Of stock and
| he has not had to turn his hand over
! to get it. He has never even had to
| so much as write a letter to get it.
The generous mail-order buyers have
handed it to him Oh golden platter.
There's money in the mail-order
| business without doubt, but its on
| the side of the man who does the SELL
ing and not the one who does the
buying. If you must do business with
| the mail-order house, buy some of its
stock and let the fellow in the next
town buy you automobiles and private
| yachts while he struggles with the
| hard times that come from draining
his town of the cash that goes to keep
you in luxury.
| PHONE 7O-J
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