1390 
August 2S, 1020 
PUBLISHER'S DESK 
All letters to Publisher’s Desk depart¬ 
ment must be signed with writer’s full 
name and address given. Many inquiries 
are answered bv mail instead of printing 
inquiry and answer, hence unsigned let¬ 
ters receive no consideration. 
Another frenzied financial bubble has 
burst—and the perpetrator of it. Charles 
Ponzi of Boston, Mass., unable to secure 
bail, - is in jail under custody of the Fed¬ 
eral authorities. Ponzi promised to pay 
those entrusting their money to him 50 
per cent dividends every 45 days, 
claiming he was making several hundred 
per cent profit dealing in foreign exchange 
and taking advantage of the Postal Union 
agreement between the nations. When 
the scheme came to light financial author¬ 
ities could pick no flaw in it and the 
transactions seemed to be legitimate. The 
plan was to send United States money 
to Italy and other European countries 
where the rate of exchange is largely in 
favor of this country, exchange it into 
money of those countries, and purchase 
international postal coupons, which, un¬ 
der the Postal Union agreement, can be 
purchased in foreign countries at the par 
value of the money of those countries, 
and good here for their face value re¬ 
deemable in postage stamps. Ponzi 
claimed a great secret in connection 
with disposing of the postal coupons 
redeemable in this country only in 
stamps. In small amounts the scheme 
was perfectly feasible, but how it could 
be done dealing in several millions was 
something no one could understand. Re¬ 
cent developments, however, seem to indi¬ 
cate that Ponzi was simply paying the 
dividends out of money pouring in with 
the expectations of the big profits. And 
so long as the money kept coming in an 
increased ratio, he could and did pay 
to the early investors or depositors the 
profits promised. It was just another 
“520 per cent Miller” scheme. Ponzi’s 
previous criminal record in connection 
with other frenzied financial schemes has 
recently been brought to light by the 
officials. Ponzi is bankrupt to the 
extent of practically ,$6,000,000, and 
many of his dupes have, instead of gain¬ 
ing unearned wealth, lost their small sav¬ 
ings. It is possible that even those who 
received the 50 per cent dividends and 
the return of their original deposit will 
be obliged to disgorge in order to repay 
the deposits of those who received noth¬ 
ing. And the moral of the tale is the old 
story that short cuts to wealth only bring 
pain, sorrow and disaster to those who 
put their faith in and trust their money 
to the get-rich-quick artist. 
We feel that you will be able to give 
us reliable information on the following 
proposition: A representative of the 
Farmers’ Standard Carbide Company, 
Inc., claiming to have a plant at Freden- 
berg Falls, near Plattsburg, N. Y., has 
been soliciting our patrons to take stock 
to the amount of $100 each. The owner¬ 
ship of this stock then privileges the 
holder to buy his carbide from this com¬ 
pany for $3 per 100 pounds. The usual 
price hereabouts is $4 60 per 100 pounds. 
Is this a bona-fide concern? w. J. G. B. 
Pennsylvania. 
We have expressed our opinion of the 
Standard Carbide Company proposition 
so many times that the subject is getting 
monotonous. The company was organized 
for $25,000. The stock sold so promptly 
that the capital stock was later increased 
to $200,000, and again to $900,000. There 
seems no prospect of a shortage of supply 
of the printed certificates! A stock 
brokerage concern is now apparently em¬ 
ployed in disposing of the stock. The re¬ 
cent developments of the stock-selling 
scheme is made clear in the following 
report from a reader : 
Some time ago the clients of this office 
told us of efforts, and some of them suc¬ 
cessful, that have been made by repre¬ 
sentatives of the carbide company and of 
a stockbroker firm in New York by the 
name of Gordon, Fine & Company, of 30 
Broad Street, New York City, in selling 
alleged additional shares of preferred 
stock of that company to farmers. It 
seems the practice is to have a slick rep¬ 
resentative call on a farmer, usually some 
one who has already some of their stock, 
which they succeeded in placing a year 
ago, and begin by trying to buy the stock 
they have, telling them that the company 
has* made so much money that it is about 
to declare a dividend, and the stock finds 
a ready sale from one and a half to twice 
its par value, or the amount that they 
•Pk RURAL NEW-YORKER 
paid for it; that it is about to be listed 
on the Stock Exchange in New Y'ork, and 
will sell for 10 times its par value before 
the end of the year, and such like. 
After feeding the victims with this sort 
of stuff they then asked them to sign a 
waiver to the portion of increased capital 
stock which they are legally entitled to, 
and which the directors have voted to sell, 
incidentally remarking that they are en 
titled to it if they want it and will take 
it right away at par, but its present value 
is many times par. After a little of this 
sort of dope they usually landed their 
victim for from 10 to 100 shares, and 
succeeded in getting 50 per cent in cash 
or check, and would take a note for the 
balance due in one or two months. It 
would seem as though they have sold a 
large amount of this stock all through the 
country, as inquiries regarding the com¬ 
pany are coming to us from distant 
points. 
When the stock of the Independent 
Harvester Company, Plano, Ill., was be¬ 
ing sold to farmers we had many inquiries 
about the advisability of the investment, 
and Publisher’s Desk repeatedly advised 
farmers to make other use of their sav¬ 
ings. Our esteemed contemporary, the 
Prairie Fanner, of Chicago, now pub¬ 
lishes the final chapter of the history of 
the career of the company, as follows: 
The Independent Harvester Company 
has sold its plant at. Plano, Ill., to the 
Moline Plow Company, and will liquidate 
its business. Materials and finished ma- 
chines were not included in the sale, al- 
though it is understood that the Moline 
Company will furnish repairs for the line 
for the present. What the purchaser 
will do with the plant has not been an¬ 
nounced. The Independent Harvester 
Companv was organized about 15 years 
ago. It was called a farmers’ company, 
and stock was sold to thousands of farm¬ 
ers in all parts of the country. Not long 
after it was organized it became evident 
that it was a promotion scheme, and that 
a few men had organized it to feather 
their own nests, rather than to benefit 
the farmers. There was never anything 
really co-operative about it. The com¬ 
pany was reorganized in 1914 and again 
in 1917. By these reorganizations the 
small farmer stockholders were frozen 
out, so that few farmers will now have 
more than a passing interest in learning 
that the company has finally gone out of 
business. 
Many people fail to understand the 
relation of a stockholder to the incorpor¬ 
ated company, the shares of which they 
purchase. The person who buys a share 
of stock in a company simply becomes one 
or the owners of the business. If the 
business is successful and makes money, 
and the officers who manage and control 
it treat the other shareholders right, each 
stockholder gets his share of the profits. 
If it fails, one stockholder has no right 
to expect that another can or will pay 
him a dividend. The dividends can be 
paid only when they are earned. To sell 
stock of a worthless concern is not in 
itself considered a fraud in the eyes'of 
the law. If a man were to buy an animal 
ip a bag. expecting that it was a pig, and 
finding after he had paid for it that it 
was a cat, he would have no redress. 
If the seller represented it to be a pig, 
he would be responsible, provided the 
buyer could prove that the seller repre¬ 
sented it to be a pig, and that he relied 
on the assurance. But it would involve 
a lawsuit, and the buyer could recover the 
damages only if the seller had property 
to reach by an attachment. All this is 
equally true of the purchase of paper 
stocks. Better find their value before 
buying them. 
April 7 we sent Bradley Bros., Ma- 
kanda, III., a check for $14.35 for cur¬ 
rants. grapes and cuttings. They claim 
the stock was sent April 23, but I cannot 
get them to send me receipted invoice or 
express receipt. They fail to answer let¬ 
ters. Can you persuade them? 
Vermont. G. d. a. 
We cannot. Bradley Bros, are still 
at the old game of beating those who 
intrust them with cash for orders. Brad¬ 
ley Bros, appear to be judgment-proof 
and proof against any other influence that 
can be brought to bear on them. They 
are the most consistent and persistent 
swindlers in the seed and nursery line 
that we have any record of. 
Every farm needs 
some of these tools 
A good, well-balanced Disston 
Saw that cuts through tough, 
knotty wood with a clean, 
straight cut; a hand-fitting 
screwdriver with a strong, ser¬ 
viceable blade; a trowel—any of 
the Disston Tools that put the 
burden of the work where it be¬ 
longs—on the tools, not on the 
muscles of the man. 
Good dealers everywhere sell 
Disston Tools. Send for our 
free booklet, “Disston Saws and 
Tools for the Farm.” Address 
HENRY DISSTON & SONS, Inc. 
General Offices: Philadelphia, U.S. A. 
SAWS AND TOOLS 
To get your silo on time 
this year, send for the 
Globe Catalog NOW. 
P 
The Globe 
Silo was first to in¬ 
troduce the famous extra¬ 
capacity extension roof. It 
gives more silo storage 
space for less silo money. 
Other exclusive features ex¬ 
plained in Catalog. 
Ohio Ensilage Cutters 
We are agents for the Ohio En¬ 
silage Cutters. With a big stock on 
hand we can make prompt ship¬ 
ment. Send for Catalog and at¬ 
tractive prices. 
Globe Silo Co., 2-12 Willow St. Sidney, N. Y. 
Strong and Handsome 
“ Crainelox ” patent covering 
over a stave silo, with Silafelt 
between, produces a smooth 
3-wall silo without bothersome 
iron hoops; a silo 
that makes and 
keeps good sil¬ 
age by keeping 
warmth in, and 
cold out. 
Any old stave silo, 
tipped, twisted or 
broken can be re¬ 
built into a beautiful, 
enduring Craine 3- 
wall silo at a fraction 
of the cost of a new 
silo. 
Prices are certain 
to advance. Place 
your order now. 
Send for literature 
and early order dis¬ 
count offer. 
Craine Silo Co. 
Box 110, Norwich, N.Y. 
The Governor of Maine was at the 
school and was telling the pupils what the 
people of different States were called. 
“Now,” he said, “the people from Indiana 
are called ‘Hoosiers,’ the people from 
North Carolina ‘Tar Heels,’ the people 
from Michigan we know as ‘Michiganders.’ 
Now what little boy or girl can tell me 
what the people of Maine are called?” “I 
know,” said a little girl. “Well, what 
are we called?” asked the Governor. 
“Maniacs.”— Credit Lost. 
The THRESHING PROBLEM 
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combination machine. Nothing like it. “The 
machine I have been looking for for 20 
years," W. F. Massey. "It will meet every 
demand,” H. A. Morgan, Director Tenn. Exp. 
Station. Booklet 30 free. 
Roger Pea & BeanThresher Co.,Morristown,Tenn. 
WELL D rAYs NG WELL 
Own a machine of your own. Cash or easy 
terms. Many styles audsizes for all purposes. 
Write for Circular 
WILLIAMS BROS., 432 W. State Sf.. ItLaes. N. f. 
