Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1920-06-04

we can pay ten per cent. III sht
YOU what the setup looks Ike"
wrote on the back of an old envelop
capitalization S2.000,000 20OO
hares at $40 each.
Now. the company land you mu
remember that so far we haven
my official connection with ID, agree
10 take over the property and pay n
present owners for II with 5000
shares of stock, and II also agrees /
sell to you and Angela and me tn
Their 10000 shares at dollar apiece
or $4,000, Of which we agree to pa,
half in cash, and the balance In abou
ninety days
Now then, we own 10000 shares
for which we've paid. and agreed t.
pay $4,000. That is. we've under
written these shares for a doln
apiece and paid down half the amount
Now let's begin to look at It from the
puhlic's standpoint Here's a mine
with plenty Of ore; and company
with cash enough on hand to begin
producing al profit very soon-al-
though nobody pretends that it's ac-
tually producing now. Ii has 100000
IN the bank. and another 100000 due
In ninety cafs II ran 90 ahead and
contract for mac merry and workmeu
ana II does. ana you and Angela ana
are still letting the former owners
manage il. bur since we re- in control
Of the stock, we either elect ourselves
as directors, or elect other people
whose names carry weight with the
public. so that W. can Away q rect
the general policy, and see that it's
careful and conservative. From every
angle, then, financial and moral the
venture looks like big success. So |
you and Angela and | go to a good
broker, or to group of brokers, and |
make them a proposition. We con. |
vince them of the value we have; we
let them send their own engineers out
TO make report, and as evidence of
good faith. we pay all their expenses:
we let them go over our books. Every.
things fair and square and above
board. And we agree that these bro
kers will take some of this stock off
our hands to sell to the public (be.
cause they've got a selling organiza-
non already established. and plenty of
customers who look to them for ad.
vlce) and it's agreed that they'll nav
us-say. four dollars share for what
they think they can sell. The brokers
then do some advertising, send out
their circulars and bulletins and
pamphlets to their customers. and sell
nat stock to the public for anywhere
rom six to eight dollars share. That
S, the public is glad enough, when the
prospects, good one, to pay seven or
ight dollars because every shares
'oing to be worth ten) for what cost
he broker four dollars, and cost us :
ne dollar-which we've already got :
ack from the brokers, and we've still
OF the half of those 10000 shares of D.
lrS left besides So here's the final c
alance sheet" He hastily tota ed q
lie list, and handed 1t over to Cullen
EQUALIZATION 2,OOOOOo-2OoOOo shares at Fl
ock paid to individual
'"hets .........-.............. 81 900 shares =,
ock sold to syndicate for =
i-V'oOV 900 shares M
'otal .........................2o 200 600 shares -,
OF our 10000 shares III
: sell to brokers'. -. 5000 shares tr
- br
'eaving ...................... 10000 shares h.
give brokers two year u
ption at s. apiece on...... 10000 shares pa
eaN'hS ACKNOWLEDGEMENTS. 70.Oo0 shares ia.
pay lawyers experts etc 10000 shares
eavins ...................... 6OOOO shares loo
And that balance of 10000 shares"
said, belongs to us three. The
kers are making a market and es- '''
fishing a price; and ip order to pro ~
themselves, they can't afford 10 0oli
the stock sell under the price
IRE charging the public-because sue
icy did, the public wouldn't huv M yer
rest of what the brokers have to ="
out they d buy it in the open mar 49,
80 the brokers protect the mar 'i''
by what's considered perfectly
innate means. althougb 60 go out
''NoAi7f bibiiOu5D some fOlkS
1t manipulation, and they keep the year
up by main strength until the Vioi'
dividend is paid, and after that srea
don't have to worry because now strld
ybody sees what n good tb;no - ~ laug
hocks In to take advantage of IT, II
the quotations jump Zip to twelve Loo
fteen. Everybodys made money. Int
rokers have made theirs; the pub. pies.
making theirs, aud when the prloe he h;
ght the syndicate sells in omen suffe
ct the 10000 shares It had left To s
You and Angela and have each her !
a quarter Of a million dollars farce
nat really risking single cent? else
use as ! said, we got our money sucee
right at the beginning" and h
CELIA who had followed the in. warfa
ies of The setup with the liveliest hear
ST. turned pale: and Cullen's law Of he
Hllliard returning his foun. had 81
leu to his pockat MIN, ~. c.,