Philanthropy

In the deep ravine of Wall Street, it is an old story of how Claude H. Foster founded the Gabriel Manufacturing Co. on the modest sum of $1,500. Wall Street was equally cognizant that that Company earned $1,086,195 last year, representing an interest of 72,413% on the original investment; that Mr. Foster was the sole owner of this thriving concern, which manufactured three-quarters of the world's automobile snubbers and shock-absorbing devices. But even Wall Street, which hears many strange things without a metaphorical flicker of its eyes, opened them wide in astonishment last week.

It was reported that Mr. Foster had sold his Company to the Cleveland and Manhattan banking and brokerage firm of Otis & Co., founded by Charles A. ("Tot") Otis, also editor of Finance and Industry. That was not surprising. But that he should have sold for $3,000,000 less than was offered was. Mr. Foster, rich and content, was actuated solely by the desire to have the Company's stock sold to his employes and the public at a reasonable price.

*It is a usual practice, when a large offering of securities is made by a syndicate to the public, for the syndicate to place a market order to buy at about the price of the offering. Thus the market price of the security is kept at or above the syndicate price until the offering is largely dosposed of.