Sunday, September 25, 2016

If Quaker Oats had bought ONE, not 19.11 acres of land in Vancouver in 1955, how much would our, or Donald's, share value be worth today

When I was a kid living in Kitsilano, my family purchased breakfast cereals from Quaker Oats and Kellogg Corn Flakes.  The limited amount of choice was a hold-over from the end of  two Wars, the Second and the Korean.

Quaker Oats had a marketing scheme that offered the kind of real estate investment that a Donald Trump (born June 14, 1946) would never be interested in unless it was in Vancouver (downtown) .....  the Dawson City property did eventually end up being a GOLF COURSE  ... so maybe Donald Trump did acquire the majority of the 21,000,000 shares while he was still a kid.  The golf weather in Scotland (11 degrees C.) isn't that much different that Dawson City (4 degrees, C.), right?

Quaker Oats bought 19.11 acres of land in the Yukon Territory of Canada for the price of $1000 USD and printed up 21 million deeds for one square inch of land. On advice of counsel, Quaker Oats set up and transferred the land to the Great Klondike Big Inch Land Company to make the company the registered owner and manager of the deeds.

Starting on January 1955, 93 newspapers across the United States ran advertisements that read "Get a real deed to one square inch of land in the Yukon gold rush country" and, "You'll actually own one square inch of Yukon land". The promotion was tied to the Sergeant Preston of the Yukon radio show which Quaker Oats was sponsoring at the time.

 The promotion instructed people to mail a form along with a box top from either Quaker Puffed Wheat, Quaker Puffed Rice or Muffets Shredded Wheat to the Quaker Oats company. In turn, a 5 by 8 inch deed to one square inch of land in the Klondike was sent back. In February 1955, Quaker Oats was blocked from trading the deed for a box top by the Ohio Securities Division until it received a state license for the "sale" of foreign land. To get around the injunction, the company stopped the trade-in offer and instead put one of the deeds in each box of cereal produced.

Since none of the deeds were actually registered, the documents were never legally binding and owners of these deeds were never actual owners of any land. The deed excluded mineral rights on the property.

Now where did I leave those Quaker Oats deed documents?

OH, right beside the goldbricking BCRIC shares offered by Bill Bennett's Social Credit Party before they sold off False Creek for a cool $50 million and then taxpayers had to dole out $60 million to clean up the pollution caused by the original owners who's lands were expropriated by Bennett for Transportation Expo 86.   Expo 86 did cause the high price of real estate here in Vancouver.

And the Prosperity shares, funding promised by Premier Christy Clark???? as being derived from LNG revenue, is being delivered by dipping into the MSP funding revenue.


Anonymous said...

"Bill Bennett's Social Credit Party before they sold off False Creek for a cool $50 million and then taxpayers had to dole out $60 million to clean up the pollution caused by the original owners."

Is that the same Bill Bennett who was later found guilty of stock swindling?
There are so many Bennetts in BC politics it is sometimes hard to keep track.

North Van's Grumps said...

Same Bill Bennett. Gordon Campbell rewarded him by naming the Kelowna Bridge after Bennett. Not Stock swindling...

The B.C. Securities Commission this week found former B.C. premier Bill Bennett and his brother Russell guilty of insider trading during Oregon-based Louisiana-Pacific’s unsuccessful attempt to take over Doman Industries eight years ago.

Anonymous said...

'Not Stock swindling... insider trading'

The difference?

To me: the latter is a niche of the former.

North Van's Grumps said...

... guilty of insider trading ... Globe and Mail story

The Bennetts sold more than half a million shares in Doman Industries at $11 a share before the close of trading on Friday, Nov. 4, netting an estimated $2-million profit, the commission said. Doman shares reopened for trading the next Monday at $7.75.

The commission banned the former premier, his brother and Mr. Doman from trading in securities or from “being a director or officer of a public company” for 10 years.

North Van's Grumps said...

David Baines, Vancouver Sun:

What could have been wrapped up in a matter of days with a simple confession, evolved into a nearly decade-long ordeal. Twenty years later, it remains a significant, although largely unspoken, blemish on their otherwise exemplary records.

In 2005, Premier Gordon Campbell announced the new bridge across Okanagan Lake would be named the William R. Bennett Bridge in honour of the former premier. And in 2007, Bennett was awarded the Order of British Columbia, B.C.'s highest award for achievement. Russell Bennett is still racing thoroughbreds. Both are living in the Kelowna area.

Anonymous said...

I framed my 5 BCRIC shares and it is hanging on a wall in my basement. If nothing else, they are a nice "official-looking" document. I never followed the fortunes of BCRIC. Are they worth anything now?

North Van's Grumps said...


“Exactly!”, Mr. Zeman acknowledged and then forcefully asked me, “Tell me what really happened?” I sadly had to inform him that the share certificates were now adorning peoples’ living rooms as wall paper and were totally worthless.