The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-07-20
The Story Of the Promotion Of
Brotherhood Banking
THE BREACHES IN THE LEGAL WALL
BIZ John Gabriel SOItiS
CONTINUED from last week.

reveal nothing unusual or extraordinary They read
very harmoniousy in their wrapping of legal phrase
ology. Their face is very innocent indeed, to the
lreader. Such is the aspect of all dangerous
legal documents That is why lawyers trained; 10
put things over legally within the limits of the law
This document is classic example of the dubious art
of the lawyer.
The Pacific Brotherhood Investment Co. of Seattle
Washington is subsidiary of the Brotherhood In
vestment Company of Cleveland, Ohio It's control is
provided for by ownership of ftyone per cent of the
common stock. Webb and Paddock can assign the
proxy to Cass and Merrick. They ostensiby guard
and protest the interest of the Brotherhood Invest
hood Investment Company. THAT is TO SAY THAT
ment Company of Cleveland, in the Pacific Brother
THEIR POWER is SUPREME IN THE AFFAIRS
OF THE PACIFIC BROTHERHOOD INVESTMENT
COMPANY. They the real bosses, whose author-
ty is based upon their voting the majority stock by
proxy. Behind them, it must be always remembered,
stand the two giants at Cleveland, Webb and Pad
dock
Under the first title is set out the name of the cor
poraton "The Pacific Brotherhood Investment Compa-
n.y."
Under the second title is set out that its principal
office in the state of Delaware is located at No
West Tenth Street. in the city of Wilmington and in
harmony with this the Bylaws of this corporation
under the title Officers provided that the principal
office shall be in the City of Wilmington County of
Newcastle, State of Delaware
ILL.,
Article three of these articles of incorporation sets
forth the mature of the business or objects or mr.
poses, or scope of the business And few Of these
objects and purposes as follows to-wit o carry
on general investment, mortgage loan benz com
MISSION insurance business borrow-money issue notes
or bonds buy and sell Stocks buy and sell timber pro
ducUS' TO operate FARMS purchase and sell live stock
buy and deal in merchandise of all kinds construct
sVores' dwelling houses, to manufacture deal in and
with goods wares and merchandise "of every class and
description to acquire letters patent of the u s. or
any foreign country
Then, In general, to carry on any other business in
connection tn the foregoing, whether manufacturing
or otherwise, as atural persons might or could do"
Then there follows final clause which in effect
says that if there is any line of business which we
may nave forgotten to mention and in which this cor
poratlon might to engage the power to do that
also granted, whatever that may be-
Section four of these articles sets out that. "TbA
total authorized capital stock of this cornoraton e
thirty thousand 100000 shares of preferred stock Of
the par value of one hundred dollars (S1OOOOl ner
snare amounting In the aggregate to thirty million
collars, (S3OOOOOOOO0), and thirty thousand go OOOl
shares OF common stock without nominal or mar
value. POI
AN interesting and unusual clause of Section ic tho
AoHowlng: persons who may become The hold
es OF the preferred stock of this issue nv the
ance OF their respective certificates for stool ,
rght 70 vote upon or in respect of any increase or
reuucuon or change in the capital stock of the com
pany ana lrrevocaby appoint the secretary of tba
pany their proxy and attorney in fact and
empower him to vote all of the preferred stoc &c Ali;
issue upon such question in the same manner &c +bo
majority OF the common stock of the comnanv iS ,,+
Gu rull voting power and control of the corpora-
ZION shall be vested in the common stockv The neo.
PIE VINO put the money into the enterprise have No
voice whatsoever e ~
The fifth article provides that. "Tbo n
shares with which this corporation will cor,roo,oe
BUSINESS is ten (1O) shares of common stock ,+bot
nominal or par value. "Not thin dime mt into Al
company by the incorporators This is deadly ,ora1
e 10 the procedure that the "wrecking crew. emnool
elsewhere employed
Inc sixth article provides 'this corporation l. :,
nave perpetual existence" . =
VII
me hlntn section of these articles nrovdas +h+ A.
DOaru Oh directors may determine how. when ond ~
uer "hat circumstances and conditions q 49,
my see the books and accounts of this
ar: would De perfectly under their RIGHTS ,ndo,
he roioht " Siey 'oio an nquisitive stakeholder thai
H inlgne see the books in a dark roor - s - :,
under the ground, January the tenth 1oAo = lee
w. anu the stakeholder would have No -. 10
N law or equity This board of directors ei.le
see'ion may hold their meetings legally s
ss ear'n They may hold their meetings a. ta
TG,s or m Bombay Cork at Spokane :
onuer TINS same section it is provided that sf +h
Jaws SO provide and the bylaws under the title ETeO
two ~ mms'ee' Section To- do prOvde) to designat,
eommlttee, which shall for the time bair
- salo resolution or in the bylaws of this
nave ana exercised any all of the power 90 al
BOARD OF directors in the management Of Az y sns
ana affairs Of this corporation and have to
sutnorlze the seal of this corporation to be afs :,
a. papers winch may require it," This section min.
p'o''ues 'nat pursuant to the affirmative vote =
Continued next weekly =