The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-03-22

AN SWING on our present capital. But
ntil we can handle a. much larger
olume there is no real money IN the
|usiness. We want to raise anywne,e
Expanding our plant and increasing
|ur advertising and our sales forces
Re could make very fine sprofits ana
big future would be assured for those
e us in 1t.
How can we raise the capital we
eed?' ~
because we haven't enough capital
he have been moving along on small
|cale," related another capital seeking
isitor. ''In our line you have to nave
|ig outputs before you can get your
overhead down and your rate OF profits
| 70 to a really satisfactory level. We
ave the reputation. We have the ex-
erience. We have the right location,
nth room to expand. But we don't
ave the capital to lift the business up
b where we must get 1t II there Is 60
7hg to be anything In 1t. Where can
Re get half million or q million cap
Now what would or could you tell
'nese in such a position?
Their numbers are legion. They are
b be founder rather, they1find you
b every state; In every community al
host. ss& r
- aar1
f The problem Is there.
A What is the answer?
would give a goodly sum out of
by own pocket to be able to offer
pme sound and sure solution, for most
u these who are wrestling with this
sbstacle are men of earnesttiess OF pur-
*0c ~ Initiative anh industry.
ben who have started with nothing
8 ut their own savings and have sue
eeded in building up going business
3 some size. -.
: The principal underwriters and in
estment houses in New York do not
andle issues Of the size here referred
b. They deal only in millions and tens
b millions.
So they are out of the question.
True there are swarms OF promo
ers'' and brokers" of a certain stripe
tho eagerly take hold of any "proposi-
on" which can be attractively dressed
b and send out glib-tongued statesmen
y talk the gullible into parting with
sheir savings for so-called securities"
hut these gentry demand a rake-off
hnging, usually, from 40 to so per
zsnt, or even more. They are not at
III concerned about the soundness or
1onesty of the project; their sole con-
Esrn is to make a quick and easy
& ean-up. Apparently, II does not pay
*onscientious concerns to conduct all
be necessary investigation and incur
Ill the expense entailed in. floating is
lies ranging from $100, 900 up to ST.
10000. The sales resistance naturally
I great when neither the company nor
s product is widely known.
& Then there has developed another
base of this marketing of unlisted Sc
Irities, a phase which Is today caus-
ahg very serious worry in not a few
irections. 1t is .this:
Stocks or bonds or mortgages are dis
ibuted among investors, through
nergetic advertising, through sales
ben, etc. Certain prices are charged
ut when owners OF such securities
nd 1t necessary to sell they often dis
pver there Is no ready market. OBJ
iously, 1t doesn't pay issuers Of such
ecurities TO buy them back without
'ss to the original purchaser, since
here has been incurred all the ex-
ense Of selling them.
e Consequently, there has been spring.
hg up in the Wall Street district deal
lgs in these securities and the quota
ons named always are so far below
be price the investor paid that they in
Prfere with the operations of the
ouses of issue. Durant was plagued
y this and now others are saying their
BUSINESS is affected, not to say ha-
assed.
Are there any concerns of honesty
md reputation prepared to handle the
aising of capital for such men as the
wo mentioned earlier in this column i?
The outcome does not depend solely
pom a mans business ability. It de-
ends partly on his personality. 1t de-
ENDS a great deal upon the influence
Q has been able to build UP, upon the
Isegree Of confidence he has inspired
others, upon the number and caliber
8 friends he has succeeded in making,
It Is when a man reaches this stage
bat the test comes as to whether he
las in him the makings Of a big bust
less man or not. II he can hurdle
bis obstacle, the likelihood is that he
i'll prove equal to hurdling whatever
Tiers arise during his later career.
he can't hurdle this obstacle the
eduction to be drawn is that he has
ot quite fitted himself to get into the
lue chip class.
OF course, we must not forget that
1t were easy to go out and obtain
undreds' of thousands of dollars of
hpital, any fool could do 1t, and the
awards would not be worth anything.
is exactly because II is hard to
aise capital for an honest business
pat the rewards are so keenly and
Fidely coveted.
Success to all who deserve SUGGEST
Copyright. 1924. BY B, c. Forbes0
HESTER'S WEEKTV cOTrONy