San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1925-10-01
Buying on Time Payments
By ELWOOD LLOYD

Not lon- ago the American Tele-
phone and Telegraph Company decid-
ed to offer to the American public
S1J1 100000 of new stock, for the
further development of the national
system of telephone service.
Within a very short time 100000
individual subscriptions to this issue
were received.
In the subscriptions there were
| $4,000 applications from persons who
sought ownership of "A. T. & I. for
the first time. The other $4,000 ap-
plications came from persons already
listed on the records of the corpora
/ ton.
II is interesting TO note that $1,000
I of these subscriptions were made on
the deferred payment plan. The
amount received as first payments on
these subscriptions amounted to So
100000.
Tie average amount subscribed for
was approximately seven and one
third shares.
These few statements Of fact are
illustrative of several most interesting
truths. These are truths well worthy
of serious consideration by all per
sons engaged in the fields of finance.
First. they show that high-gradc
organization can. If it will. attract
small investors by the thousands when
it offers a high-grade security.
Second, they show that the small in
vestors. providing they are not
mulcted of their funds, will. when
they know their needs and interests
! L RI
GUS market for the financing of legi-
innate industry. =.
Third. they show that the partial
payment plan, so general in use
| throughout this country in all lines
of merchandising. can be made a pow
erful factor in the stimulation of thrift
and OBSERVATION-DISCLOSURES the state
ments Of economists to the effect that
our partial-payment plan of busines:
| is cause Of improvidcnce.
Fourth. il shows that for high-grady
corporations there is a great latent
and largely unexplored market which
could be made The source of almost
limitIess credits for legitimate trade.
Concerning the plan Of the A. T. &
T. 10 place its securities in such gen
eral fashion. a recent issue Of th'
magazine Of Wall Street says:
This broad policy on the part o
corporations inures greatly to .th'
benefit Of small investors. Instead o.
leaving them 10 the tender mercies o
the fake stock salesman-which J,
what all Of us. who ignore the small
investor. actually dot has been hell
that merely a reasonable consideration
Of the needs. requirements and ambi
tions Of small investors on the par
Of legitimate industry would win
large proportion Of the people awal
from the tricksters and hucksters an'
save them land for legitimate indus
iry) at least some Of the millions upor
millions which heretofore have beer
poured into the Golfers of the fy-by
nights"
The tremendous success OF the build
| ing and loan associations over tn
county. has been brought about large
Is becsnse Of the monthly investment
possibilities afforded 10 the small in
vestors. The partisl-payment plan is
system thoroughly established in thu
minds Of the American public. Bul
this fact does not, seem TO have per
coIated as thoroughly into the head:
of industrial leaders as it has into ths
programs Of the great merchandiser'
Of the country.
II the partial payment plan Of So
curities sales were TO be more widely
developed by the high-grade corporn
tons. much Of the money now lost
through worthless investments would
be- saved. The flysDy-night and the get
rich-ouick salesman cannot afford n
wait for weekly payments n be mad
on the things they sell Too many
things might happen before the final
payments were made. These suave gen