The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-07-13
The Story Of the Promotion Of
Brotherhood Banking
By John Gabriel SOLtiS
CONTINUED from last week.
THE ORGANIZATION OF THE PACIFIC BROTHER
HOOD INVESTMENT COMPANY


HOOD INVESTMENT COMPANY
We come now to the birth, organization and promo
ton of the Pacific Brotherhood Investment Company of
Seattle Washington and the legal foundation of its
superstructure.
The two wizards at Cleveland, Ohio, George 7. Webb
and H. A. Paddock having assembled their trusted lieu
tenants and former associates assigned them for
territory of the Pacific Slope there to oper
atoms in the world of finance the assumption that
labor suffered from a dearth of banks They rushed
forthwith to fill the void atho the economic condition
of the working Glass; informed good author
ity, has not improved any result of these labor
banks, either individually in the On the
trary, the situation is just the opposite.
The very first thing required to operate 'labor"
banks and bond companies, is of course, charters and
articles of Incorporation Therefore, the first step
the part of Webb, Paddock Glass; Merrick and Company
to get such articles incorporated.
A DELAWARE CORPORATION
1t is to be noted that the Pacific Brotherhood In
vestment Company is Delaware corporation, and not
Washington This fact is extremely significant
to those who know the why people go to Del
to form corporations.
Every American schol boy of average intelligence
knows that the state of Delaware breeder of leay
articles of incorporation; that of fakes have
been incorporated there 1t is state where the swind-
lers find legal umbrage for their rackets 1t is the
Mecca of the dishonest promoter where they gather to
n. L..
H. A Paddock, the two master minds at Cleveland who
know the legal meaning of the State of Delaware with
regard to articles of Incorporation made the Pacific
brotherhood Investment Company Delaware Corpora
tion 1t was incorporated in the state of Delaware
the twenty-fifth day of April 1924.
1t is also of considerable moment to know that no
body on the Pacific Coast had anything to do with the
drafting of the articles of Incorporation Mr. Paddock
may regard the B. L. of E. qualified to run engines
but its membership the Pacific coast as wholly in
competent to draft legal papers such as the ones un
der consideration Therefore, Paddock attended to this
almportant phase of the work himself directly from
Cleveland
1t is true that Mr.. Paddock was not on the scene !,
person; that was not necessary. He had efficient nu
ceGs on the Jub 1t was formed by Glass; Merrick an,
Company They knew how to execute the master,
orders from Cleveland and they did,
Mr. H. A. Merrick transacted all the business amer
tanning TO The articles of Incorporation He was in tel
ephonic communication with Mr. Paddock at Clevelan
during the formative period of the Pacific Brotherhood
Investment Company.
"nen the articles of incorporation arrived at Spo
Kane they bore the pencil notations of Mr. H A Pad
dock on their margins. Very likely those were the in
ocatons to the keys contained in them that would un
lock the golden treasure at given moment
naturally, few representatives of the B. L. of T
engineers were permitted to gaze upon the wondrou
words OF wisdom sealed in the document: however /
mem II was all Chinese puzzle. Furthermore VIII
Snou.o tney bother about such matters Had not I'll
guiding stan of the B. L. of E. given his official in
prma1ure TO the enterprise namely, the late Ware
but what the good brothers quite FORGOT ,uos -
lac1 tnat no one person is infallibe Moreover II W.
no dlcut task for Webb and Paddock to organize Il
oo man whose seniity favored their projects to ok,
their plans. 'S " oAs
Finally it is well to note that the Brotborbood 7
sestment Company of Cleveland is an Ohio cornor
uOn. Right here is very cardinal contradiction w,
go to Delaware with the Pacific Brotherhood Iruo.
ment Company? niVes
Inc terms of the articles of incorporation answ
our question We publish them in toto, as thew VIC
ned with the secretary of state of the state 81
mgton as of December % 1924 or lust e;ob+ ,,oss
after their birth in the state of Delaware at the Il
of Wilmington =
While the careful perusal of this document ,,o1
rather dry reading it is of the utmost importance -
the reader do so in order to be able to recognize
leaks IN it as we point them out below. Here i ;s
Next Week Breaches in the Legal waln