The Caldwell tribune., 1922-02-03
Profits of Stockholders in Mail
Order Houses Stagger the
Imagination.
CUSTOMERS SUPPLY CAPITAL
One Man Makes More Than $250,oo0
on $4,000 Investment In Nine
YearsA-Hundreds Like
Him.
(Copyright.)


1t isn't by buying goods from them.
The man who thinks he Is making
money by buying his goods from mail
order houses has only to read of the
amazing profits made by some Of these
big corporations to realize that all 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 it. Here is the
experience of thg stockholder in one
of the large ndil-order concerns, as
told by a reliable financial journal. 1t
gives a glimr Sc into the inside work.
ings of the mail-order business that
should be Of interest to those who
have ma lie such things possible.
How the Game Works.
In. 1908 this man bought 900 shares
of stock in the mail-Order corporation
II question when the stock was selling
around $40 share, the 900 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 500
shares without his having put any
more money into the business.
Another stock dividend of 80 per
cent was declared in 1915 and this
added 400 shares more to his holdings,
giving him 1900 shares in ALL. A third
stock dividend of 25 per cent was paid
early in 1917, bringing this mans
stock holdings up to 1900 shares, still
without his having paid In any more
money. On this 1,50O shares of stock
cash dividends of So share are now
being paid. This investor therefore
is now receiving $4,000 year from
his original investment of about $25,-
900. and as the stock Is now worth
around $16O a share, the present mar
ket value of his stock is $24O,OOO, CIV
ing him a profit of $215,OOO, In add
ton to cash dividends which he re
.ceiyed during nine years, amounting
to many more thousands Of dollars. Z.
Only One Of Hundreds.
This is the story of just one small
stockholder in one mail-order concern
A profit of more than $215,00O mad
by one small stockholder in nine year
on an investment of less than $25OOO
It reads like fiction but it. is financia
history. There are hundreds of othe
stockholders in this and other mai
order corporations, some OF whoI
have made millions while this ma
made thousands. Add the profits
all these stockholders together and tn
result Is a sum that staggers the imal
ination.
Small wonder that the men who oW
the stock of the big mail-order hous'
can live In palaces, ride In the highes
priced automobiles, own palatial pl
yate yachts and buy 100000 pair
ings. But who has furnished Il
money to pay for the palaces and q
automobiles and the yachts and q
100000 paintings? The people In t
country and the small towns who ha
kent an endless stream Of money fio
ing into the Golfers of the mail-ord
houses have made all this possiD
Their millions Of dollars have gone
the big cities to build up these gre
concerns. Their millions OF dollt
have provided the automobiles q
yachts and other luxuries for
stockholders In these corporate
Present From Mali.order Buyers
These men who have piled up 81
big fortunes In the mail-order b'
ness have not even had to pay
much of the stock from which they
now drawing prlncely dividends. ]
people In the country and the sn
towns, generous souls, have bought
for them. This is shown In the
of the stockholder just mentioned,
originally invested. The gener
mail.order buyers have made hin
prrsent Of s21b,0 GOO worth Of stock
he has not had to turn his hand Q
IN get II. He has never even hae
no much as write letter to get
The generous mail-order buyers u
handed Il to him on a golden plat
There's money in the maii-ol
business without doubt, but Its
the side of the man who does the
ing and not the one who does
buying. II you must do business
the mail-order house, buy some oi
stock and let the fellow In the
town buy you automobiles and pri
yachts while he struggles with
hard times that come from drai
his town Of the cash that goes to
you in luxury.