In cases where the complete prospectus is advertised, it is advisable to append to it a copy of the application form, which spares an intending subscriber the trouble of sending for one, and will in many cases tempt an undecided reader to fill it up because it is there before him.
Should an application form for shares be attached to an abridged copy of the prospectus, it is most important that it should be clearly defined that the applicant is applying for shares on the terms of the full prospectus, as filed with the Registrar of Joint Stock Companies. The abridged copy, besides being altered to distinctly state that it is an abridged copy, should contain a statement that applications for shares only be entertained on the terms of the full prospectus. In sonic instances the promoter, on receiving an application for shares which has been attached to an abridged copy, immediately forwards a copy of the complete prospectus to the applicant.
Prospectuses should be posted, without fail, not later than the afternoon before the advertising appears in the papers. Many a good company has had to suffer from remissness in this respect, and cases have been known where prospectuses were actually delivered after the lists had closed. The Post Office will not pass forward more than a certain number per day, and if a larger quantity is sent in than their resources will meet, the bundles are held back till next clay. Therefore it is advisable to advertise the day after the prospectuses have been put in the post, and the day the lists arc opened. Prospectuses must be faced all one way, and can be delivered to the General Post Office or certain district offices in bundles of 5s. postage each, accompanied by a slip stating the number of such bundles ; the - postage being then paid in cash. It is, however, infinitely preferable to have adhesive stamps affixed.
At one time Saturday was the favourite day for new issues, but such large numbers have often been launched on that day that they choked each other, and so caused a congestion. It would therefore be wine to leave the selection of the day to the advertisement contractor, who is usually well posted as to what is coining out. Above all things, do not advertise
anything fresh on any of the days of the Stock Exchange Settlement, or in the Stock Exchange holidays, and nothing whatever in August or the first two weeks of September, unless the state of the mafkets warrants the issue being made. During the intervals of Whitsuntide and Eastertide also, very disappointing results usually follow an appeal for public subscriptions.
After the prospectus has been issued to the public, and all details carried out, it is usual to insert in the papers an announcement as to the closing dates of the issue. This acts as a reminder to the investing public. After this, an announcement to the effect that letters of allotment have been posted is inserted, and if the capital of the company is over-subscribed, the announcement will state that letters of allotment and regret have been sent out. This practically finishes the agent's work in connection with the issuing of the prospectus. The following are examples of closing and allotment notices.
Closing Notice The list of applications for the issue of 73,000 £1 shares in The Whetstone Tin Mining Corporation, Limited, will close to-morrow for both town and country applications.
Allotment Notice when Over-subscribed Letters of allotment and regret in The Whetstone Tin Mining Corporation, Limited, have been posted. The issue was considerably over-subscribed.
Allotment Notice only Letters of allotment in The Whetstone Tin Mining Corporation, Limited, have neen posted.
Promptitude and Dispatch. --To illustrate the up-to-date methods of a thoroughly competent advertising agency, it might be mentioned that instructions for the advertising of a company may be sent in at 7 P.M., and on the following the prospectus will appear if necessary in all leading papers throughout the three kingdoms, and marked copies of those from such distant places as Leeds, Birmingham, Liverpool, Bristol. Hull, York, Manchester, &c., can be lying on the promoter's desk when he reaches his office in the morning.
P. C. Bewrox.
Haaayinq birictr»r of ihwar,,stic.9 Ltd., and P. C. Burton, d• Co., La.