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a sphere with which he was entirely famil- want more of this story are referred to the iar, and in which he was competent.
Phila. Public Ledger, which began July 1st I am led to the above remarks by the sad to give a detailed but fair and considerate condition of those who have invested mil- exposure, publishing an article on this sublions of dollars during the past few years ject in almost every daily issue from July in the enterprises of T. J. Foster, of the 1st to the present writing, July 12th, and perScranton (Pa.) Correspondence Schools haps will continue as further facts develop. fame. This man moved to Scranton 26 It is a long, sad story. The price of the years ago. He publisht a miner's paper, Ledger is 2 cents on weekdays and 5 cents in which he conducted an “Answers to on Sundays. This information is imporQueries" department. This grew so popu- tant to those who may wish to send for it. lar among his readers that he conceived the The Financial World (18 Broadway, idea that mechanical education could be N. Y., 10 cents per copy) began in 1912 to conducted by correspondence.
throw light on Foster's schemes, and in its From this small beginning an exceed- issue for July 10th, page 17, it gives a chroingly profitable and useful institution was nologic list of these articles up to the presbuilt up. Special text-books were needed ent date. This is all I need to say here, to conduct the teaching, so a Text-book Co. except to say that the existence of the was establisht, and these two concerns worthy original enterprise, the correspondworkt hand in hand, each to the advantage ence school, is jeopardized by the insanity of the other. The ownership was concen- above referred to. Scranton is trying hard trated in the Text-book Company, which to
its celebrated correspondence was capitalized at $4,000,000, most of schools. It was reported that the Scranowned by Foster and his associates.
ton banks would advance $500,000 imIf he had topt there he would have mediately needed, but it seems that more been rich enuf to satisfy any reasonable careful investigation discouraged them. man, and he could have continued in a use- Foster has appealed to the people of Scranful life, commanding the admiration and ton, but the result is not yet known. gratitude of his city and many students Query: Where did all the money go? scattered over the entire country.
Query No. 2: Will Foster and his guilty But it seems that money madness entered associates receive just punishment? his brain, or a foolish ambition to do big Conclusion No. 1: The issuance of things, involving the risk of money ob- stocks and bonds should be rigidly scrutintained from others. Then he began to ized and controlled by state or nation, or water the capital of the Text-book Co., and both. If such losses as bove noted had also to organize other companies and issue been incurred by burglary, we would think stock by the million. He sent agents out we were not civilized. The losses occurred specially trained in the art of stock selling, just the same, and prevention of losses by and particularly were the students, both such means is necessary, as well as losses past and present, solicited to buy the stock. by burglary. And the general public bought (bit) freely Conclusion No. 2: And this is for you, on the good reputation of the Scranton doctor. Beware of stock peddlers. And institution.
some bonds are just as bad or worse; so There were land companies (Florida and don't be misled by the word “bond.” California lands), coal companies, a type
The International Lumber Co. writer company, and even a poultry company. The agents called the latter “Fos- The Ledger for July 8 gives the total ter's hen stock.' He bought a farm in valuation of the assets of this defunct conNew Jersey for less than $25,000, and on cern at only $738,735. Over $6,000,000 it he based $1,800,000 in stocks and bonds ! worth of stock was issued and sold, and I call this “sky rocket finance.” It is esti- this is the net result. A half million rubmated that he has issued a total of $100,- ber trees were valued in the company's 000,000 in securities of all his companies, pamphlets at $2,500,000. The entire 600and that the students and general public acre rubber plantation is now valued at $1. have paid upwards of $20,000,000 in actual Those who want the details should send cash for these "scraps of paper."
for the Ledger of the above date. I will not take space here to tell more of The leaders of this fraud are now in the this sad story. I sincerely hope that no I
penitentiary. Will Foster and his assoWorld readers are victims. Those who ciates follow? I can do no better here than
to present to you the following editorial from the Ledger for Sunday, July 11:
GETTING MONEY FROM INNOCENTS. Nearly all our Government activities relating to busi. ness aim to protect the public against old existing concerns. There is yet no adequate protection of the people against swindlers who have new schemes to promote. Let existing public service company attempt to collect a dollar by illegal methods and the State and Federal fists smite it. But a lumber swindle, or a farm swindle, or an insurance swindle, or a coal mine swindle, or a gold mine swindle can be floated without hindrance under the very noses of a thousand State and national officials and systematically rob their victims of millions. Let a gas company overcharge a town a few cents and the law is invoked to punish it, while at the same time the most palpable frauds are carried on openly by which the public suffer twenty times as much loss.
Such a game as the International Lumber fraud goes on for years, taking a fearfully big toll from unsus. pecting investors, but not a protest until the harm has been done. Other equally patent swindles exist to-day, but not an official hand is raised against them. All officialdom's energies are absorbed in looking over the accounts of long existing and staple corporations in the hope of finding a leak. A Postmaster General has said that frauds against that office alone take $50,000,000 from the people of this country every year. Recently enacted laws make it very nearly impossible for rail. roads, public utility companies or big industrial com. binations to carry on a system of espionage. Isn't it long past the time for equally comprehensive statutes to prevent the promotion frauds that are conceived for the sole purpose of plundering! If ever it was true that an ounce of prevention is worth a pound of cure, it is true of a plan to save the gullible public from financial sharks, instead of merely sending the sharks to jail after they have gotten their booty.
Irrigation Securities Many irrigation bonds have been sold in recent years, particularly in the West. I notice the following in the Financial World for June 5:
THE MORGUE OF ABANDONED HOPES. PRESENT QUOTATIONS FOR SOME IRRIGATION BONDS SOLD A FEW YEARS AGO AS SPLENDID
INVESTMENTS. For nearly two years the holders of some of the irrigation bonds whose interest is in default have been waiting patiently to hear something hopeful about their securities. However, theirs is a long road and the turn in it is yet far off.
What market there is for their bonds is in & thin one with prices so far below what they paid that were they to sell their securities it would mean a very heavy sacrifice.
We publish the quotations on a few of these bonds which were obtained from a circular issued by a Chi. cago concern which seems to specialize in these issues: Bijou Irrigation 68.
45 flat Denver Greeley 6s...
28 Denver Reservoir Notes.
7 North Denver Irrigation.
30 North Sterling Irrigation.
32 Riverside Irrigation..
33 Bitter Root Valley..
58 Eden Land & Irrigation.
25 Twin Falls Salmon River.
The above quotations indicate that it may take years for these propositions to satisfactorily work themselves out of their bad predicament, if indeed they succeed at all in so doing. The lowest price is that on the irriga. tion bond sold by the Farson Son & Co. for connection with the promotion of which they were indicted by a Federal Grand Jury on charges of misrepresentation. Seven dollars per hundred is the measure of value conservative investors place upon this irrigation project.
When the agent comes around to sell securities, everything is bright and rosy. He can answer every question and he can convince you that your money is absolutely safe and that the returns will be handsome. If you invest, in one or a few years you get a jolt like that received by the many holders of the above irrigation bonds, of the International Lumber securities, and the Foster (Scranton) securities. And some of these securities were sold way above par! and practically worthless now. What availeth it if a security pays a high income for a few years and then falls flat? The International Lumber stock paid 8%, was sold at I think 50% above par, and then went down as noted. Dividends are frequently paid out of capital, and not earned. There's where the deception is, and that is against the law. Make it also against your law for any stock peddler to come into your office. If he should gain entrance, show him THE MEDICAL WORLD, and then the door. Don't attempt to talk with him. He will beat you talking, every time.
Shall We Ask Our Banker? For obvious reasons I do not give the name nor the location of the writer of the following:
Doctor C. F. Taylor; DEAR DOCTOR :-Under the head of “Business Talk to Doctors" I read month after month your hammering upon investment frauds, and your showing of the results by the letters of those who "bit”; and I'm sure that I'm one of the very many who is thanking you for pitfalls and traps pointed out to us in due time to prevent being ught.
But you usually round up with the words: “Ask your banker.” Now that may be all right in a large city (altho I fail to see any difference at all); but I happen to live in a small town, and I know personally the character of our only banker, and must state that I have absolutely no confidence in that man, for reasons I do not care to mention. Such condition is perhaps not rare in rural towns. Why, I would rather ask the agent who offers his blue sky proposition, for one might as well be bitten by the dog as by the cat.
I am trying to accumulate a little money, and it grows only in low figures. I take those greenbacks to the bank, where it is absolutely rentless; and if the bank was not protected by the State, my money would not be there at all. As the amount is not much, I would like to have access
to it any time; otherwise I would try to get a ferent altitudes, from about 5,000 feet to 14,000. first mortgage on some good ground. But finan- There will be one boarding house or tent, one cially I'm not able to do that, as I may need the amusement place and a lot of sleeping quarters money or part of it any time.
at each station. There will be a physician and Now, is there any way to let this money be a nurse on the job to advise as to altitude, etc. safe investment, so that I might get at least some Then in all large towns within a given radius I dividends, and with a chance to sell at short shall organize tourist or vacation clubs, by which notice, when necessary? It seems to me there individuals will pay in a weekly fee for so many must be, but I have no experience, and wish you weeks to entitle them to a vacation at these camps would point out some way, but please do not say, along our line. Tickets will be issued good for "Ask your banker," for I don't want to lose my so many beds or meals at any or all of our camps money. Respectfully yours, A NEWCOMER. at the holder's option. Doctor, I think your community must be
I have not the money to carry out this plan particularly unfortunate in its banker.
alone, and so must needs make it a stock com
pany and sell stock; but it will be a square deal cannot think that this condition is general. all the way thru. I take a vacation every year
It is possible that the banker in some com- and it pays well. I spend it in Colorado and munity might say, and with truth, about the enjoy it immensely. I have always taken a bunch
of friends with me and I know what the average village doctor what our correspondent has
person going west would appreciate-just such a said about his banker. No class is free string of camps as I propose building. If honfrom black sheep. I still have confidence estly handled, I believe it will grow and pay big in the average banker and his judgment cessfully for only about four months each year,
. Of course, it can be operated sucof securities, just as I have confidence in
but there is practically no expense when it is not the average doctor and his reasonable com- in operation. There is also no limit to the numpetence in his profession.
ber of people it can handle, and if properly managed every person who makes this trip will
send every friend he possibly can to make it Here is an interesting letter that you will enjoy reading :
If you go West this year I would like to have BUCYRUS, OHIO, July 2, 1915. you look the project over. I would like to adver
tise it in THE WORLD when the proper time comes, Dr. C. F. Taylor; DEAR DOCTOR :- I am a physician running a small hospital here in Ohio. For
but doubt if you will accept advertising of this years I have taken The World, read and enjoyed advertising and what you
class. I greatly appreciate your fight for honest your Business Talks. Once you were so good as
are doing for the to publish one of my letters. Twenty-five years
physicians. My proposition would be a straight
speculative investment, and I would not advise ago, when I first started in practise, I fell for many investment fakes. Then I quit. I have
any one to plunge or put in money that it would been in a mining country nearly all my life and
cripple them should they lose. Someone must have both made and lost money in mines. When
have a vision and invest in projects of this kind
or there would be little or no progress in conI say mines, I mean mines and not the so-called
structive work. I see a chance for large profits mining stock which is peddled around the coun
here and little chance for loss unless I should try. Seventeen years ago I bought some stock in Colorado to accommodate a friend. Later, I
die and the project drift into dishonest hands, found they had a good property, but it was workt
for success depends almost wholly on efficient
management. as a “sucker-catcher" instead of for gold. I
I should like to hear from you. dropt out. Later the management changed, and
Sincerely yours, after years of effort we are just getting it where
W. C. GATES. it pays. There is little question now but what it will make a big fortune for me, but it was no I wrote the Doctor that I hoped his plan investment for a man who could not follow it up would succeed, but that I could not accept with knowledge, time and money.
an advertisement of speculative stock. Some years ago I was urged to buy stock in a building railroad, but I refused. I knew the country, and the proposition was a good one, but THE MEDICAL MONTH. I lacked confidence in the management. They were too smooth and promised too much. It cost half a million to build. It was stocked for one
Dr. W. Irving Burns, a graduate of University million and the stock sold. It was bonded for
of Vermont (1896) and University of Buffalo $200,000 and the bondholders got possession with
(1897), of Roanoke, Va., formerly of Witt, III., a lawsuit that closed down the road for several
died suddenly from heart disease on a passenger years. The fellows who bought the stock lost all
train near Lithia, Va., March 1st, aged 60. they put in, and the bondholders lost much. The A "christian science", licensure act was deSupreme Court sold the entire outfit, perfect title, feated in New York by the opposition of the for $100,000, and we are running it on an honest, medical profession. conservative basis. I inclose you a folder and
Dr. G. H. Chappell died at his home in Grand ask that you look at the table of altitudes. I am now getting ready to start and operate a
Rapids, Mich., of pneumonia, aged 74. new stock company. There will be no faking of After twelve years' delay caused by litigation, any kind nor will there be any promotion stock. the $7,000,000 endowed Winifred Masterson My plan is this: I shall build permanent tourist
Burke Home for Convalescents, at New York, was camps at different stations along the road at dif- opened in March.
Some years ago the United States Government subject to the attention of these two groups, acmade it an offense for physicians practising within cording to an announcement made from headthe Hot Springs Reservation, in Arkansas, either quarters in New York City. This will come thru to pay or receive commissions for professional the medical schools and nurse-training schools. services. There the evil had grown to such pro- Virginia's State Board of Health is distributportions that drummers were sent out on all the trains approaching the famous resort, and these
ing free to the public bulletins for the bedside drummers, the most skilful of their kind, were
treatment of diphtheria and scarlet fever. very sure to land, on each and every trip, a victim
Medical examiners will replace coroners in New in the hands of their employers. This action has
York State after 1916 under the new law there. entirely eradicated this vicious practise, with the
Every other state must do likewise. result that Hot Springs has taken its position as
An official report states that the Oregon legislaa highly respectable and thoroly ethical health ture has made an appropriation of $50,000 for the resort, to which people may go for treatment with first building on the new campus of the University the assurance that they will come in contact with of Oregon, Department of Medicin. an honorable profession, the status and quality of The Langenbeck-Virchow Building, a home for which has been assurred by the wise attitude of the medical and surgical societies of Berlin, is just the National Government.-Lancet Clinic, Feb 6, on the point of completion. The library is already 1915.
being moved into the new quarters. By combinA very remarkable and useful movement was ing several scattered medical libraries, it starts launcht in St. Joseph, Mo., a few weeks ago. The with 113,000 volumes. Southern Methodist Church, having in mind those In an address before the Paris Surgical Society who are sick in their homes and who for any
recently, Professor Tuffier said that of the 14,000 reason do not wish or do not need a hospital for
surgeons in the army, 6,500 were at the front. Of their treatment, has establisht a medical laboratory these 93 had been killed, 260 wounded and 441 to serve the population within a radius of one
missing; 135 had been mentioned in orders for hundred miles.
gallant conduct on the battlefield. The Rockefeller Foundation announced at New
A memorial tablet has been placed on the house York, March 7th, that it had decided to undertake at Cosenza, Italy, where the eminent alienist, B. a comprehensiv plan for the improvement of_med- Miraglia, was born, and a similar tablet is to be ical and hospital conditions in China. The Foun- placed in the insane asylum at Aversa, the scene dation has establisht a special organization to be of his work, and a street in Aversa is to be named known as “The China Medical Board of the after him. Rockefeller Foundation," and plans as the first
Asiatic plague has been wiped out at New Orstep the development in China of medical education. This will include aid for the two or more
leans. The U. S. A. M. C. scored again.
The Iowa State Board of Health intends to medical schools; the strengthening of the staffs of the mission and other hospitals; assistance in the
abandon the method of requiring periodic chemestablishment of two tuberculosis hospitals, and
ical and bacteriologic examination of water supthe establishment of six $1,000 scholarships to
plies in favor of the more scientific method of enable Chinese graduates in medicin to prose
surveys under the direction of a civil and sanicute studies abroad, and of five scholarships to
tary engineer of the State Board of Health, who enable Chinese nurses to obtain training in this
has been working along this line since the reorcountry. The action taken was based upon a re- ganization of the board. port of its special commission, which last year Dr. Dercle, a military surgeon who has just remade a study of the public health and medical ceived the cross of a chevalier of the Legion of practise in China.
Honor, holds the record for the number of The protocol of the anti-opium convention of
wounds. He bears the marks of ninety-seven. 1912, which aims at the suppression of the opium
He abandoned his post only when he fell, having traffic and international traffic in cocain and other
received three serious wounds. At present he is noxious and habit-forming drugs, was signed at
undergoing his convalescence at the military hosThe Hagụe February 12th by Henry Van Dyke, pital of Val-de-Grâce, where he received the the American Minister to the Netherlands; Tang
medal awarded to him by the government for his Tsing Fou, the Chinese Minister, and M. Loudon,
courage and devotion. the Netherlands Minister of Foreign Affairs. The
Mercy Hospital, Chicago, Ill., receives twoaffixing of their signatures to the protocol by these
thirds of the $500,000 estate of the late Mrs. Harthree diplomats puts the convention into immediate riett Haynes of St. Charles. force for the signatory countries, which comprise A statement was recently made in the House approximately 475,000,000 inhabitants : China with of Commons by the British Under-Secretary of an estimated population of 330,000,000, the United State for War that only 421 cases of typhoid States, 100,000,000, and the Netherlands and her fever had developt in the British forces during dependencies, 45,000,000. The International Opium the present war and that of these, 305 had not Conference held a series of meetings at The been inoculated within two years. Among those Hague in June of last year, some forty-four na- who had been inoculated within two years, there tions being represented. Before adjourning the was only 1 death and this individual had received conference requested Foreign Minister Loudon to only one inoculation instead of the two provided obtain ratifications from the adhering powers. for by the regulations.
For the purpose of securing more co-operation The legislature of Virginia has refused to refrom physicians and nurses in the anti-tubercu- store the obnoxious license tax on physicians and losis campaign, The National Association for the surgeons repealed last year. Study and Prevention of Tuberculosis has inaugu- The Louisville, Ky., profession has a hot fight rated a movement to bring the importance of this on its hands, as has that of Cincinnati, Ohio, in an
attempted monopolistic control in each instance is now before the legislature to license profesof their respectiv city hospital by the local uni- sional cooks. versity medical school. It is the same reactionary
Dr. Calvin S. White, Portland, state health oigame of a “special interest” in our profession ficer, has given it as his opinion that the best everywhere that doctors must down or by it be
and most sure remedy for the rabies, which is downed.
exceedingly prevalent in eastern Oregon, is the Alfalfa, opiates, arsenic and habit-forming destruction of coyotes, among which the disease drugs are not found in American cigarettes, ac- has been found. As a result, extensiv "drives" cording to recent studies in the Bureau of Drugs on these small animals have killed off many of the Ohio Agricultural Commission.
hundreds; and rabies among cattle is markedly Dr. S. H. Chuan, a specialist on sanitary and decreasing. preventiv medicin, has been appointed surgeon- Two new insane asylums will be built by the general of the Chinese army, and president of state according to bills before the legislature of the Army Medical School, Tien-tsin.
Pennsylvania drafted by the Board of Public It costs approximately $265 to install the Penn- Charities. One of the institutions will be in sylvania Railroad ventilating system in a passen
the eastern end of the state and the other in ger car. Thus, to equip the 3,000-odd steel passen- the western, and each will accommodate about ger cars owned by this system has alone cost 1,500 patients. The bills provide for the appoint$795,000.
ment of a commission to select and buy sites. The Presbyterian Hospital in Philadelphia will The Virchow prize plaque has been awarded by replace its present buildings at a cost of $1,000,000. the Berlin Anthropologic Society to Prof. K. von Dr. G. Alvarez, a well-known pediatrist of
Toldt, of Vienna, president of the Vienna AnMadrid, has recently been appointed a member of
thropologic Society. the Cuerpo medico of the Real Camara of Spain. The Atlanta, Ga., Medical College is to beThis call on the specialist skill of one versed in come the medical department of Emory Univerthe diseases and hygiene of children is hailed by sity in that city, being developt by the Methodist the medical and lay press as of promising augury. Episcopal denomination. The latter is to provide The Red Cross badge of honor, second class,
an endowment of $250,000 and a $350,000 teaching has been conferred on Dr. McDonald, chief sur
hospital. geon of the American Red Cross Hospital unit, The Swedish Medical Association has ten meBudapest, and on Surgeons Jewett and Miller of morial endowment funds for charity, three funds the staff of the hospital.
for purchasing books and for social purposes, and The interesting theory has been advanced by
ten for prizes or appropriations for research veterinarians and others having to do with the
work. cattle and dairy industries that skimmed milk Now that the scandalous lay exploitation of from creameries sent back to the farm for feed- "twilight sleep,” for revenue only, has reacht ing to stock has been the means of transmitting the moving-picture stage, it is a satisfaction to and perpetuating disease. Sterilization of all by- learn that exhibition of these films has been products of creameries is therefore urged by the everywhere prohibited. Cornell Veterinarian for February.
Prof. A. Lanfranchi, director of the Veterinary In the campaign against malaria in the South Institute of Pathology at Bologna, contracted trySurgeon Rudolph H. von Ezdorf, U. S. P. H. S., panosomiasis two years ago in the course of his from his headquarters at Mobile has sent out six years' study of trypanosomes. He then took a cards to physicians all over the malarial territory course of treatment at the Paris Pasteur Insti. asking for information as to the prevalence of tute and was apparently cured, but the trypanothe disease. The idea is to get accurate infornia- somiasis has recently broken out again. He has tion as to the incidence of the disease and its gone to Paris for treatment. geographic distribution. Negativ as well as posi- Dr. Rufus A. Van Voast, Cincinnati, who is on tiv replies are desired. It is the intention to
duty as an auxiliary surgeon with the Second collect information on the malarial situation by
Regiment of the Fench Foreign Legion, has writsending out cards each month.
ten urging the Americans to aid the French in At one of the last sessions of the Société de the campaign being waged against typhoid fever. Biologie, M. Victor Henri, maitre de conférences Oysters now being shipped from northern oyster at the Sorbonne, called attention to the fact that beds in interstate commerce are safer than ever the wounds produced by Shrapnel ball and before, according to the bacteriologic specialists fragments of German shells may contain phos- of the United States Department of Agriculture. forus. The presence of this element, even in Oysters, as these specialists express it, are fully very small quantities, may have an important ef- as safe a food as is milk. This condition has fect, producing a mortification of tissues in which been brought about thru the sanitary surveys of anaerobic microbes easily develop. It is possible oyster beds conducted co-operatively by the Pubthat the great majority of cases of suppurating lic Health Service and the Department of Agriwounds, tetanus and gaseous gangrene are due culture, by the hearty co-operation of the State to the introduction of phosforus by shrapnel and shellfish authorities with the federal authorities, fragments of shell.
and finally by a realization on the part of the It is reported that the Minnesota Public Health oyster men that they themselves in the interests Association has indorst a plan for the physical
of their industry must prevent the taking of examination of all food handlers, to eliminate oysters from suspected or polluted beds. those suffering from infectious diseases. This The U. S. A. coastguard cutter Androscoggin would include food factory hands, cooks, wait- is now a hospital cruiser for fishermen on the ers, bakers and even cooks in the home. A bill “Banks."