“Agriculture is the Most Healthful, Most Useful and Most Noble Employment of Man .”—Washington 
Reg. U. S. Pat. Off. Established 1842 
i== .. ' ' . " .' " 
olume 113 
American Agriculturist 
THE FARM PAPER THAT PRINTS THE FARM NEWS 
For the Week Ending January 26, 1924 
Number 4 
Farmers’ Standard Carbide Exposed 
“American Agriculturist ” Shows Up Another “Promoter” 
r HE American Agriculturist with the 
cooperation of the National Vigilance 
Committee of the Associated Advertising 
Clubs of the World and its affiliated Better 
isiness Bureaus is doing its best to expose some 
ant abuse of public confidence, particularly 
I reference to the farmer. Our purpose is to 
our readers in avoiding the unscrupulous 
omoter as well as the spotting glib-tongued 
Email. We have already shown you the activi- 
s of the Standard Food and Fur Association and 
owing our exposure of this com- 
V, it was indicted by the Federal ~ —. - 
lid Jury, and its officers are now 
on bail awaiting trial for fraudu- 
nt use of the mails. 
The subject of the present article 
The Farmers’ Standard Carbide 
ilpany of Pittsburg, N. Y.” The 
Tities of this company have been 
despread and huge sums of money 
vc been obtained for its stock from 
jelieving farmers and others during 
he past few years. They are now 
ring us— “How about the Farmers’ 
iidard Carbide Company?” This 
impany was organized in New York 
^October, 1918. Its authorized 
pital stock was then 1800 shares of 
ierred Stock and 700 shares of 
Imon stock, par value $10 each, 
n 11919 the capital stock was in- 
Ised and there were further in- 
|ses in capitalization, so that it 
is swollen its capitalization to 
i,000,000. It now consists of 90,- 
)0 shares of Preferred Stock at the 
ir value of $10 a share—that is, 
00,000, and 51,000 shares of corn- 
on stock of no par value but which 
is been sold at $100 a share — that 
$5,100,000 for the common stock, 
iking a total of $6,000,000. We 
ill see later on what the company 
5 to show for this $6,000,000 
Btalization. . . 
The American Agriculturist has 
tttinually advised its readers that the stock of 
is company was anything but a safe investment 
id m its issue of June 3, 1922, the statement was 
ade: “We recommend to our readers that they 
■ve nothing to do with representatives of the 
imers’ Standard Carbide Company. They are 
the same category with promoters of many 
ifcerns who operate on the theory of advertising 
> a means of paving the way for the sale of the 
Ipany’s stock.” 
Notwithstanding numerous warnings of this 
Plication, and the advice of the National Vigi- 
fce Committee and its affiliated bureaus, com¬ 
mits are still being received from farmers who 
phased the stock of this company from high 
Jsure salesmen, who indulged in most lurid 
atenients and bombastic figures. 
The Bait That Was Used 
ie practice of inducing the gullible public to 
U ,Y this stock went on uninterruptedly for several 
'‘ill’s after D. A. Stromblad, its organizer, headed 
the company back in 1919, In the files of the cannot buy a stock of carbide unless you buy 
National Vigilance Committee, there is a copy of carbide stock.” It was easy enough to get the 
an advertisement which appeared in a Syracuse, farmer to buy the carbide stock when promises 
N. Y., newspaper bearing date July 12, 1919. were made as to 7% dividends, and statements 
Among other things, it contains this statement: made as to how stock would go up in value. May- 
“ It is the intention of the company to supply its be it was only $10 cash down, and $40 to be paid 
stockholders who use carbide for domestic pur- later. Then an order would be given for carbide 
poses with a high grade of carbide at a liberal which would in fact be delivered. This was often 
discount from list prices. The surplus of the followed by another visit from the salesman, who 
factory will then be sold for commercial use.” . would then talk to the farmer about purchasing 
In November, 1919, this company in an advertise- i more stock and then the real money would be paid, 
especially since the farmer was told 
1 . 1 - 1 that the carbide was only sold to stock¬ 
holders. The farmer did not stop to 
think how the company could sell car¬ 
bide below the market and at the same 
I time be doing a legitimate business 
f which would be profitable to its stock¬ 
holders. After he bought the stock he 
| experienced great difficulty in getting 
, the company to fill orders for more 
l carbide. It actually looked as if the 
company did not want to sell carbide 
at all, but only wanted to sell carbide 
stock. Could that be possible? 
The best answer is to look at the 
company’s own figures and to see 
what it is worth and whether it made 
To Our Readers 
i 
I N our number of November 17, 1923, we presented to you the story 
of the Standard Food and Fur Association, and told you how they 
bought back rabbits. This story entitled “Heads I Win, Tails you 
Lose” was followed up by others, and before the end of the year a 
Grand Jury in the United States District Court indicted the Standard 
Food and Fur Association and all of its officers. 
Beginning to-day, we are presenting the facts as we have learned 
them in reference to the activities of the Farmers’ Standard Carbide 
Company, about which company we have received innumerable com¬ 
plaints. It is our policy to maintain a Service Bureau for the benefit 
of our subscribers and to get information for them in answer to their 
inquiries. In accordance with this policy, we have repeatedly re¬ 
quested information from the Farmers’ Standard Carbide Company. ^ 
It is not the purpose of the AMERICAN AGRICULTURIST to muckrake 
or throw mud at any company. We merely desire to get facts and 
information and before publishing anything, we communicate with the 
party itself. You will see our letters to the Farmers’ Standard Carbide 
Company and you will see our endeavor to be fair to them. We wanted, 
if possible, to give them the benefit of the doubt, but they have con¬ 
sistently failed to give us the facts sought. Read these articles and 
write us what you think. 
American Agriculturist, 
President, HENRY MORGENTHAU, JR. 
money. 
ment offered to sell this product to stockholders 
at $3 per hundred-pound drum, whereas the 
market price of carbide, at that time, according 
to the company s own statement , was between 
$5.50 and $6 per hundred-pound drum. In 
addition the company agreed to pay 7% on its 
preferred stock. 
To get carbide below the market naturally 
looked good to most farmers, especially so when 
the salesmen would boost the carbide with such 
poetic statements as “This wonderful light-giver 
is made in a model factory where bountiful Nature 
offers the tremendous force of a waterfall harnessed 
to create intense electrical energy.” The farmer 
would also buy a lot of carbide when he read the 
company’s statement that “the finest machinery 
modern science can device is being installed to 
keep Standard Carbide the best for all lighting 
purposes, that which burns brighter—lasts longer. 
The farmer would be very anxious to get this 
splendid product, especially if he could buy it 
below the market. Other glib-tongued salesmen 
would even tell the farmer for the first time, “You 
l The Company’s Financial Statement 
Our investigation of the facts and 
figures given out by this company 
themselves lead us to believe that 
very little of the money that was 
being collected from the farmers ac¬ 
tually went into the company, and 
there were numerous other question¬ 
able items which appeared in the 
company’s statement. In accord¬ 
ance with our policy of giving the 
other fellow a fair deal, we wrote to 
the company directly, asking them if 
they could explain their own figures. 
As you will see from the correspond- 
M ~ ence which follows, we have waited in 
vain for two months and have still 
not received any explanation from the company. 
On November 20, 1923, we wrote this letter to 
the Farmers’ Standard Carbide Company: 
“ Many of our subscribers are stockh olders of your company 
and have requested us, from time to time, to give them in¬ 
formation regarding the company. 
“In accordance with our policy of maintaining a Service 
Bureau for the benefit of our subscribers, we answer such, 
inquiries, and for that reason are taking the liberty of asking 
you for certain information concerning your company. 
“We would appreciate it if you would furnish us with a 
copy of the operating statement of your company for the past 
three years. Also we request information as to the money 
made by your corporation for each of the last three years, and 
would like you to advise us on what dates, during the past 
three years, either in cash or otherwise, dividends have been 
paid. 
“We have before us copies of your balance sheet statements 
dated respectively December 31, 1921 and 1922, and would 
thank you to answer the following questions in reference to 
them: 
“1—The former statement shows that you have cash on 
hand and in bank amounting to $108,214.43. The latter state¬ 
ment shows this figure as $34,256.47. Will you be good 
enough to explain this difference? 
“2 —The former statement shows Liberty Bonds carried 
(i Continued on page <§4) 
