American Agriculturist 
THE FARM PAPER THAT PRINTS THE FARM NEWS 
I 
“Agriculture is the Most Healthful, Most Useful and Most Noble Employment of Man.”— Washington 
Reg. U. S. Pat. Off. Established 1842 
Volume 113 For the Week Ending March 22, 1924 Number 12 
“That $600 Was Never Borrowed” 
How a Banker Saved a Friend From “Invest Quick or It May Be Too Late” 
T HE Plattsburg plant of the Farmers’ 
Standard Carbide Company has been 
sold for unpaid taxes. 
This is the latest development in the 
case of this stock-selling company which prom¬ 
ised such great things. 
Readers of the American Agriculturist will 
remember that in two previous articles we have 
described the business methods of this concern 
and told how many eastern farmers were per¬ 
suaded by the glittering promises of glib sales¬ 
men to invest their savings. 
The company 
great capital of its 
advertising 
machinery and shipping 
as among the reasons why carbide 
could be sold so cheaply to stock¬ 
holders and yet still pay dividends 
when sold at less than market prices 
to the general public. Whatever set¬ 
backs or difficulties the concern 
experienced in other lines, it always 
fell back upon the Plattsburg plant 
to justify its glowing statements. 
Nothing, however, has ever been 
said in the literature of the company 
about this recent development, un¬ 
earthed by American Agricultur¬ 
ist investigators and confirmed by 
a letter from the County Treasurer 
dated February 6th, PPM, which says: 
“Your letter of the 5th inst. in¬ 
quiring about the property owned 
by the Farmers’ Standard Carbide 
Company has been received. In 
reply I am pleased to advise you that 
the property sold at the recent tax 
sale was the dock privilege south of 
the city line which is assessed to the 
American Carbide Company, and 
the 261 acres assessed to the Farm¬ 
ers’ Standard Carbide Company. 
The amounts of the taxes on these 
two parcels are $12.42 and $1190.12, 
respectively, and t he purchaser of both was T. lb 
Cotter of the law firm of Weed, Conway & Cotter 
of this city.” 
The continued existence of the Farmers' 
Standard Carbide Company is an amazing testi¬ 
mony to the cleverness of its organizers and 
officers. Its president, Samuel Null, is himself a 
lawyer, and naturally all possible precautions 
have been taken to keep the concern “within 
the law.” For instance, when dividend time came 
round, and stockholders expected checks, they 
received instead stock in other concerns, sub¬ 
sidiary to the company. Although the stock¬ 
holders objected, this was apparently a legal pro¬ 
ceeding and the fact that most of them felt sure 
that the new stock was more worthless, if possible, 
than that of the parent concern was no help in 
getting their money. They had to accept the 
dividends in unmarketable shares and hope that 
next time they would have actual checks. 
While farmers in New York and neighboring 
states were buying stock in the concern, their 
money was being used to finance further stock¬ 
selling campaigns rather than to build up the 
business. Too soon after the profitable eastern 
campaign to be a mere coincidence, a flock of 
“super-salesmen” invaded Ohio and began lo 
push the Farmers’ Standard Carbide Company 
there. 
However, these men flung caution to the winds 
and from the first made such extravagant state¬ 
ments that they soon defeated their own ends. 
Not before a goodly number of Ohio farmers 
had bought stock, unfortunately; but many were 
saved from loss by the cooperation of the Ohio 
Farm Bureau Federation and the National 
Vigilance Committee, which from its New York 
office furnished much enlightening data on the 
Farmers’ Standard Carbide Company. 
As a result, the Federation summarized the 
complaints and filed them with the Securities 
Division of Ohio, asking that the certificate of 
corporate compliance authorizing the disposal 
of stock within the state, be cancelled immedi¬ 
ately. 
Specifically, the Farm Bureau Federation de¬ 
manded information from the company on the 
following items: 
No. 1. Furnish complete list of the securities 
and investments carried at $465,951.50. 
No. 2. Give total sales of stock for the four 
and a half months’ period intervening during 
which organization expense was increased by 
over $75,000. 
No. 3. Explain how it was able to increase 
its assets by $672,000 and cut down its liabilities 
by $152,000. 
The Federation also called the Division’s 
attention to the good will item of $200,000 and 
the valuation placed upon the company’s real 
estate and equipment, and filed copies of letters 
from stockholders alleging misrepresentation, 
circular letters from the company to stockholders 
and copies of the financial statements which had 
not been explained to their satisfaction. A hear¬ 
ing was accordingly granted on the complaint. 
Ezra C. Anstaett, secretary of the Farm Bu¬ 
reau Investment Service of Ohio, summed up the 
result as follows: 
“The company’s local attorney was the only 
representative who appeared at the hearing, and 
instead of setting up any defense or attempting 
in any way to explain the financial 
statements, he presented a letter 
from the company stating that all 
their agents were being withdrawn 
immediately.” 
Further light on the way in which 
the company turned tail and fled 
from the fertile fields of Ohio is con¬ 
tained in. an authoritative letter 
answering the request of American 
Agriculturist lawyers for informa¬ 
tion on this point. The letter says: 
“The license of the above-named 
company to sell securities in the State 
ot Ohio, was revoked September 25th, 
1924, Jor the reason that the company 
withdrew from the State.” 
The italics are ours! 
That recent articles published in 
the American- Agriculturist have 
attracted widespread attention is 
attested by the many letters which 
have been received by our Service 
Bureau. In one case, the president 
of an upstate bank wrote: 
“Gentlemen: 
“My attention has been called to 
your issue of January 26, 1924, and 
in particular to your article on 
Farmers' Standard Carbide Com¬ 
pany. There was considerably of this 
stock sold under questionable rep¬ 
resentation in this territory. We used 
every effort to stop it. * There are 
several of our substantial farmers who would be 
glad to give information if the same would be of 
any use. I certainly wish to congratulate you on 
accomplishing a work of this kind.” 
Please notice that sentence “we used every 
effort to stop it." Similar expressions have been 
heard by all our investigators. Time and again, 
officers of local banks have told us that their 
depositors failed to consult them in making stock 
purchases; that whenever they possibly could, 
they prevented such so-called “investment.” 
One banker told of a visit from a young farmer 
whose standing in the community is so fine that 
“his word is his bond.” 
The young man asked, “Is my credit good to 
borrow $600?” 
“It surely is,” responded the banker, “but 
that's a lot of money to need in one flat sum.” 
“I’ll double it soon,” said that young man and 
went on to tell how salesmen selling Farmers’ 
Carbide Company stock had already sold him so 
much that his bank account was very low and 
were urging him to borrow “up to the hilt,,” in 
order that he might realize all possible profits. 
{Continued on j>n(je 312) 
has always made 
Plattsburg plant, 
its capacity, up-to-date 
facilities 
What Can We Do for You ? 
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AGRICULTURIST is constantly working to furnish its people. A farm 
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the country, is much more than something to read. No matter how 
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When you subscribe to a great farm paper, you in reality join a 
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fective weapon to correct injustice known to modern times. That 
weapon is publicity which brings out the truth. 
Our investment service, which is illustrated by the article on this 
page, is only a small part of the help that we can render. What par¬ 
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toes on hand or some other crop and want some definite information 
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Or it may be that some law like that of cutting brush or weeds, or 
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may be too that you have been offered what looks like a good invest¬ 
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sible that you have replied to an advertisement or had dealings with 
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Editors. 
