A miniature reproduction of a full-page advertise­ment of “Hemo” ap­pear­ing in a Mil­wau­kee pa­per. The original covered 341 square inches.

The earlier name for the Thompson concern was “American Malted Food Company” and originally it had its office and factory in Milwaukee. Its products are “Malted Milk,” “Malted Beef-Peptone” and “Hemo.” As long ago as 1911 the company was sending out glowing descriptions of the money that might be expected to be made by investing in the concern, which was then known as the American Malted Food Company. According to the company’s booklet it was estimated that in the United States and Canada alone $20,000,000 worth of dry malt food products were consumed annually. Further:

“On the most conserving estimate the American Malted Food Company will supply 5 per cent. of the demand or $1,000,000 of the consumption from the very outset....”

At the time this was written (1911) the company claimed that its stock had “been advanced over 100 per cent. in one year’s time” and that even then it had “found it advisable to curtail the sale of stock so as not to exceed the prescribed number of shares to any one person.” In 1914, however, the company still had its representatives in the field offering stock for sale.

In November, 1913, one physician wrote that three years previously he had purchased stock in the company and at that time (1910) was given to understand that dividends would be paid in at least a year! He has received no dividends to date. Other physicians have written that the company’s agents in attempting to sell stock have given the impression that the concern either is paying dividends or is about to pay dividends. Still other physicians say that the agents made no claim to them that the concern was paying dividends. To quote from a few of many letters together with the date of the communications:

“Alluring promises of big profits in the near future have been held out by the canvassers....” (September, 1913).

“No actual promise was made but it was ‘estimated’ that dividends would be declared ‘about the first of the year’” (November, 1913).

“After I said I wouldn’t buy any stock was told the company was already paying dividends and I was turning down a good thing.” (March, 1914).

“The agent gave me to understand that the profits of the company were enormous and that large dividends would be paid in the near future.” (March, 1914).

“Mr. —— [the agent] told me the company expected to pay dividends as soon as all the stock had been sold.” (May, 1914.)