It is only when he foolishly--and usually quite as unconsciously--makes some definite allegation, such as, for instance, that the company "owns six hundred acres of fully developed mining property," or has "a smelter in actual operation on the ground," or "has earned sixty-five per cent.

on its capital in the past year," that the financier runs the slightest risk.

It may be that a purchaser would find it so difficult to prove the falsity of any of the statements upon which he had relied in purchasing the stock that the vendor would practically be immune, but in these days of muck- raking and of an hysterical public conscience prosecutors sometimes go to the most absurd lengths and spend ridiculous sums of money out of the county treasuries to send promoters to jail.
They are apt to have a hard time of it, however.

I recall one scheme in which a client of mine was interested, involving the floatation of about a hundred thousand dollars' worth of railroad stock.

The circulars, printed by a famous engraver and stationer, were twenty pages in length and contained the minutest description of the company's board of directors, rolling stock, capitalization, bond issues, interests in other railroads, government grants of land, and the like.