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Show LIBERTY BOND OWNERSWARNED Agents Offering to Exchange Bonds for Stocks Must Not Be Heeded. WASHINGTON, July 8 Owners of Liberty bonds were warned by the treasury department tonight against agents offering to exchange bonds for stocks supposed to yield higher returns. re-turns. "One of the most flagrant recent cases is that of a man signing his name as Stanford Holmes, 67 Wall street." the department's statement said. "Mr. Holmes, through a circular letter, sought the co-operation of bankers in inducing Liberty bond owners own-ers to trade these for a well-known stock. Such an exchange, he said, would greatly increase the returns to the investor, but he ignored the fact it would yield him an enormous profit, and replace Liberty bonds vrith an investment in-vestment of much less value. "The alluring 'book value' of ike stock, which Mr. Holmes aimed to exchange, ex-change, was the hook upon which ho attempted to catch. In a circular letter sent broadcast to banks, Mr. Holmes offered twenly-one shares of stock 'book value $3186' for ?3000 In Liberty bonds of any issues. Figuring on the basis of an annual 10 per cent return on the stock and 1 per cent on Liberty bonds, Mr. Holmes declared the holder of twenty-one shares of the stock would receive $90 more a year than the holder of $3000 In Liberty bonds. "One important thing that Mr. Holmes failed to state was that on the closing day for his offer, twonly-one shares of the stock he mentioned wero worth, including brokerage, $2351.63 on the New York stock exchange, while the amount of Liberty bonds for which he proposed to trade this number num-ber of shares of stock could have been sold for not less than $2350." oo |