The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-08-24


Cass and Merrick drafted prospectus for the con-
sumption of the masses, from which we Gull the 1ol-
lowing gems: n
"The Brotherhood mvestemnt Company of Cleveland
Ohio has purchased 10000 shares of Common stock of
The Pacific Brother Investment Company and will is
sue free of charge the investor share of
stock with every two shares of preferred stock pur
chasd. The Brotherhood Investment Company of
Cleveland, Ohio, will retain control of the company
thru ownership of 51% of the common stock"
Again: Dividends at 10 payable from the net
earnings Of the company may be declared the pre-
ferred stock annually. After payment of seven per
cnt the preferred stock the remainder of tn
ngs will be distributed follows: The first 800 of
additional dividend will be declare in favor The hold
of the preferred stock. The remaining 2O% avail
able for dividends will be declared in favor of the
holders of the stock"
And again '"The nationwide system Of Brotherhood
Banks shows what be done along the line of popu
lar ownership of big institutions These banks and the
associated investment companies owned by thous-
ands of small investors from Boston to Puget Sound
And again: "The popular ownership of the Brother
hood Banks brings them unusual advantage in that
the people who the banks also deliver an
enormous volume of business"
1t will be observed according to the rainbow adver
Using put out that the Brotherhood Investment Com
pany of Cleveland purchased 10000 shares of
stock of the Pacific Brotherhood Investment Company
This common stock is given away with every purchase
of shares of preferred stosck That to say, the
purchaser is getting something for nothing This is
important. 1t so happens, however, that the common
stock has par value So, after all, the purchaser
did not get any gift But the advertising reads beau
tfuy Moreover the preferred stock that is paid for
by the purchaser has voting power Also, the com
Stock which is the voting STOCK cannot be effec-
lively voted by the "sma investor for the good and
sufficient that 519 of it the majority bloc
IS in the hands of Webb Paddock, Cass, Merrick and
Company. The only thing that the "small investor"
got, was opportunity to part with his money to
Cass, Merrick and Company. And he got that In a
large quantity.
Concerning the distribution of profits as advertised
easily that that distribution is based upon the
identical policy of any capitalist bank There is only
an additional reading feature attached to it. with ref
erence to how and when dividends may be paid on the
common stock That is all the holders of that stock
will ever get-the reading matter
There is a continual reference to popular owner
ship" This impressive point in the circularl
the high water mark of fake advertising
But we have that there is no popular owner
ship" related to the Pacific Brotherhood Investment
Company The Articles of Incorporation and the By
laws forbid it. AS matter of fact San executive
committee of two more" may take everything in
sight, including the furniture without popular" con-
sent of the rank and file stockholders If this const
tutes popular ownership then what is private owner
ship?
However, the circular in question was SO full of
alsehoods that the Securities Commission of the state
OF washington had to take steps to stop its circulation
Even capitalist authorities could not sanction it. Now
that's going pretty far when those authorities were
constrained to interfere with Glass; Merrick and Com
pany, who, as rule know how to dodge all legal bar
riers.
The following letter under the signature of w II
reser assistant secretary of the Pacific Brotherhood
investment Co.. and now stationed in San Franc;soo
California which, was sent to all statesmen recalIino
tne prospectus from which have quoted above The
reader will particularly note the strain of haste and
nervousness in the letter:
Copy
HE PACIFIC BROTHERHOOD INVESTMENT IN
North lis Wall Street
Office of the
Secretary-Treasurer company
December 16 1924
All Statesmen:
Immediately upon receipt of this notice Won will
please withdraw from further circulation the last uro
spectus that was issued through this office This !,
the one containing the map
owing to certain corrections that are necessorv :,
TINS prospectus, we must insist that Won immed;ol
uesroy those now In your possession A new sunnly
Will be sent you in due time ff''
andy give this matter your immediate attention
anu refrain from distributing any as soon as tbi
nouce reaches YOU Please acknowledge recent Of tb
nouce and forward said acknowledgment to this off.
by return mail. 0 o1iic'
"hI-MY w. H. Tresseler
The reader has, undoubtedly noted in the above let
H. -