"I will. You go to some guarantee company and have them agree to guarantee the payment of the principal of each share of stock sold at thirty years. Don't you see that makes your stock as solid as a government bond?
"The guarantee company takes a certain portion of the proceeds of the stock, invests it for thirty years. With interest and compound interest, in 1935 the stock has accumulated its par sum. It is a beautiful system."
Do Booming Business.
"Very plausible, but where are these guarantee companies?"
"Why, there are The National, The States, and The Industrial. We hear The States is doing a booming business. Go and see them. They are at such a number."
The victim went to the richly furnished suite of offices occupied by the guarantee company and met its dignified "president," to whom he explained the purpose of his visit.
"Very good," said that official. "We will accept your risk. We will issue you an option agreeing within one year to issue you bonds against your stock as sold, you to pay us an advance fee of $1,000."
The "sucker" demurred. He had only $500 spare cash. The president suggested that as the broker would make a liberal commission out of the deal he might put up the other $500. The manufacturer 'phoned the broker, who promptly agreed to pay one-half of the fee. The broker gave the victim a worthless check for $500, which he gave, together with $500 of his own good money, into the hands of the "guarantee" company. The company thereupon issued a certificate, or option, for bonds that were never called for because the broker never sold any of the stock.
The victim went home loaded down with promises. The broker "strung" him along for a month or two, but sold no stock. Finally the manufacturer realized he was buncoed. The broker and the "guarantee" company divided the $500, and proceeded to find other suckers.
March 17, 1906, E. C. Talmage, who conducted the National Underwriting & Bond Co., of San Francisco, Cal.; the Pacific Underwriting & Trust Co., of San Francisco, Cal.; the Imperial Bond & Trust Co., of New Jersey City, New Jersey; the International Trust Co., of Philadelphia; the Chicago National Bonding Co., of Chicago, at 52 Dearborn street; E. C. Talmage; E. S. Barnum, 103 Randolph street; and M. J. Carpenter, of the First National bank, were arrested.