The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-02-21
WIDENING ITS FIELD.
Mr.. Alexander Collier and His Trust
Company Schemes.
A Companion-Piece to the Indianapolis
Marion Trust Company in Opera
ton at Chicago.
The Observations of a Tribune Re-
porter About Its Plan.
What the Officers Propose to Do, and How
They Invest Their Surplus Capital to
Bring Them Large Returns.


One of Indianapolis most eminent ttnanciers,
not content with paraly ziug the Hoosiers by the
magnitude of his stupendous money-making
schemes, seems TO have branched out vigorously,
and has chosen Chicago as his new field of oper-
ations. Alexander Collier, the head, tail, front
and center of the Marion Trust Company-in
fact the company itself-has organized a similar
company in Chicago, known as "The Union
Benefit Association" the "plans" under which
it is operated being the same as those supposed
to govern his company in this city. The Chicago
Tribune, of Saturday, devOtes three columns of
its valuable space to an expose OF the association,
from which the following is selected:
SIX months ago the Tribune called attention
to q small concern called the Union Benefit AS
ISOLATION, which had just gotten from the Secre-
tary of State the papers authorizing it to
transact its peculiar business. From what
could be learned, 1t was apparent that the
scheme was one which was not ON a sound
financial basis, and that fact was stated. The
concern has kept on its obtrusive way, however,
doing business almost entirely among ignorant
foreigners, who are not aware of the delusive
character of the enterprise. Like other schemes
of a similar nature, it has paid heavy returns to
others to step in, and has been measurably
successful in its operations, there being now
several hundred certificates taken. 1t is there
lore time to call a halt ana proceed to wind up
the affairs of the association. The scheme of the
company ought to convince every one that the
sooner it Is shut up the better for all concerned,
except perhaps the projectors. Its officers are:
Alexander Collier, presidents; T. Schottler, secre-
tary; and M. Drossner, general agent, snd it's
offices are located at room 10, No. 1879 Madison
street.
WHAT THE AGENTS CLAIM.
The reporter on visiting the company's office
encountered a young man, who claimed to be an
agent, and poured forth his seductive eloquence
in the following strain:
"It's a splendid s~ociety-nothing better in the
city. For every 1873 you pay in you take 800
out. You dent get the whole sum at oncn, but
You Will get $61 when it comes your turn, and
then your chance fol- the balance, which goes
into a reserve fund. By rights, you should get
the full 500, you see, but they will give only
SCI, aud keep the balance to fall back on, and
think when a fellow gets SCI for paying 1888.
am makes $28 profit, he has no reason to grum-
BILE If they pocket the balance altogether. That's
now | leok at IT,. How can they do itf Well, Pm
6lest If rightly understand it, but they can
figure II out plain, and there's plenty l know has
got paid. They pay all in their turn. There's
nearly a hundred to be paid before me, but
when 1t does come my turn / am sure of the
money. It's all a matter OF time. Now, I say
that's better than joining a secret society, for
here you get your money in a lump, and don't
have to wait until somebody dies for it,"
Mr.. Drossner, treasurer of the concern, ex-
planned the methods TO the reporter, who con-
cealed his identity, and said he wanted to take
out a certificate:
"How is 1t that the association can pay 500
lOi HoO ShC III CPOttOLs
eve don't do that" was the reply; ave only
pay Sol. Here's how it is: Take six shares by
way of illustration. Share No. l belongs to us
that is, to the assoc1ation-as We take every
third share for the protection fund, Share No.
2 Is sold to Smith, No. 3 to Brown. and No. 4
belongs to us. Then No. 5 is sold to Jones, No.
6 TO Robinson, and Ne. z is ours, and SO on. We
pay the money out of our receipts only-for in
stance, that 81 you gave goes to make up a sum
of 800, and when we have a full 300 then one
certificate is paid off. The certificates mature
just as there are funds to meet them. They are
MID IN. fha nrl ua Ia can d. W. -z--
third share belongs to us, and we pay ourselves
S61, and $1l expenses. and pass 1928 to reserve
same as a private shareholder. We do not pro-
fess to pay any money out until it comes in, and
we don't speculate or anything of that kind"
$50 three persons paw in for every one that is
paid out, and out of every three paid out one is
for the society-is thar it?' asked the reporter.
"Thats II, partly. Yon must understand that
there is no risk whatever. II the society was
broken up tomorrow every shareholder would
be paid out of the reserve fund"
But the reserve fund could not possibly pay
them in full" said the reporter.
"No, no; not in fun, but it would pay over $50
a share. 1t would pay seventy cents on the dol
lar"
who holds the reserve fund.-"
"The finance COMMITTEES; you will find their
names on the circular. You see it is TO the in
terest of every member to bring in additional
turn to be paid off. We don't guarantee to pay
SOL, nor to pay anything, for that part, hut we
will keep paying while the society lasts. and
while money comes in. When the money stops
coming we stop paying"
The reporter wanted to take an agency and re-
ceived terms from MI. Drossner:
"Well, we cannot settle that definitely until
we see how you get on. For to start with 1
will give you Sl.5o out of every 81 you collect
on the sale OF n share. Sell ten shares and you'll
make S15-you can do that every day in the
week" And we may do even better than that,
If you push the thing we'll" said Mr.. Drossner.
you s-o there's no trouble, for every one you
show it to and recommend it to will jump at the
chance. Take some circulars and cards with
you. Don't forget this point: There's no risk
of loss in any case, as the reserve fund Will paw
all, less a small commission. Every member is
fully provided for and no chance to lose any
thiug-that is what gives confidence. Mark that
sentence in the circular so you will remember to
point it specially out"
"Of course, as only about one person can he
paid out OF every four or so that join, the So
ciety VIII be broken up in the end2" said the re-
porter inqulr1ngly.
Chat may be &C: hut you can see we have
provided for that. We are likely to run for
years, and increase rapidly also as we get
known. We did more in the last month than in
any two months previously, and only a few days
ago one person bought fifteen shares who had
just been paid SOL on the share that matured,
which proves how the thing will spread as peo-
pie gain confidence in it. That person will pay
$40 every ten days-pay in, say $500 altogether
and in a few months draw out about 81 900.
That's the way to make money. OF course in
case of a wind-up those who had not been paid
would be at some loss, as these payments OF SOL
on certificates here altogether depend upon in
coming funds from new MEMBERS"
A HOLE
Five minutes consideration of the circular
showed the reporter there was a hole some
where, even in taking their own figures as cor
rect. The society has been six months in exist
ence, and has paid out up to the present,
according to its own published statement,
about So ,800-perhaps not quite that much,
but very nearly. Counting the number OF
certificates issued, and deducting one third of
these as belonging to the society, it would show
aVQn allOyfnO I'll 000 for hal n dna fha Oniat