Free John Fitzgerald GB 05 Great Bra by Great Brain Reforms Page A

BEGIN MINING OPERATION HERE. SUGGEST COMPANY RAISE NEEDED CAPITAL BY ISSUING ONE THOUSAND SHARES OF FIFTY DOLLAR PAR VALUE PREFERRED STOCK FOR SALE TO CHICAGO BROKERAGE HOUSES AT TEN PERCENT DISCOUNT. WILL ARRANGE FOR SURVEY OF PROPERTY TODAY.
    FRANCIS K. PENDLETON VICE PRESIDENT
     
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    Mr. Whitlock sent tor Papa after reading the telegram.
    “This is the biggest economic development that could happen to Adenville,” he told Papa. “You and I are going to call on Mr. Pendleton and convince him that the citizens of Adenville should be permitted to buy stock in the company.”
    The banker telephoned the hotel. Mr. Pendleton wasn’t in but Mr. Whitlock knew Robert Meredith was the only surveyor in town. He reached Mr. Pendleton in the surveyor’s office. Mr. Pendleton told the banker he was going out to Alkali Flats with Mr. Meredith that morning but would meet Mr. Whitlock and Papa in his hotel suite at two o’clock.
    Mr. Pendleton was such a high-class fellow that he didn’t go to a barber shop for a haircut. Danny Forester’s father was cutting Mr. Pendleton’s hair in the suite when Mr. Whitlock and Papa arrived. The banker introduced himself and Papa.
    “I assume, gentlemen.” Mr. Pendleton said, “that you are here to learn why Alkali Products Incorporated purchased Alkali Flats. Our company manufactures lye, soap, and Epsom salts. Our present source of supply for raw material is getting low. We sent our chemical engineer, Mr. Cummings, west to locate a large bed of al-kali soil rich in the chemicals needed for our products. With the help of state boards of agriculture Mr. Cummings located large alkali deposits in Kansas, Colorado, and Utah. But the others were either too far from a railroad or so poor in the chemicals needed as to be worthless.”
    “Excuse me,” Mr. Forester said, as he moved Mr. Pendleton’s head slightly to continue the haircut.
    “To go on, gentlemen,” Mr. Pendleton said. “One alkali bed suggested to Mr. Cummings was Alkali Flats. You will be glad to know that the soil is very rich in the chemicals needed for our products and only half a mile from the main railroad line. We expect to be mining and shipping carloads of raw material to our Chicago plant in about two months. We will employ approximately twenty-five local men when mining operations begin. I believe that answers all of your questions, gentlemen.”
    “Not quite,” Mr. Whitlock said. “Mr. Larson showed us a copy of the telegram you sent.”
    At first Mr. Pendleton was angry. “Doesn’t your Mr. Larson know that is against the rules and regulations?” he asked. “I could have the man terminated for it.” Then he shrugged. “No real harm has been done. Whatever was in the telegram will become public knowledge when the new stock is issued.”
    “That is what we wanted to talk to you about,” Mr. Whitlock said. “As mayor of Adenville, may I suggest that your company permit our citizens to invest in the first big industry to locate here?”
    “I’m sorry,” Mr. Pendleton said, “but that is impossible. The thousand shares of stock will be sold to stockbrokers in blocks of one hundred shares at forty-five dollars a share. This will enable the company to get the capital needed immediately. The brokers will then sell shares of stock to the public. You can purchase stock that way. Instead of paying forty-five dollars a share, the stock will cost you about fifty-five dollars a share. The brokerage firms must pay their salesmen a commission and make a
     
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    profit. But even at fifty-five dollars a share the stock is a bargain. It will be worth a great deal more when we pay our first dividend in about six months.”
    Mr. Whitlock didn’t become a banker because he didn’t know his arithmetic, “Assume that other citizens and I,” he said, “wanted to purchase a block of one hundred shares. Could we buy them at the same price as a stockbroker?”
    Mr. Pendleton thought about it for a moment. “I