The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-03-23
THE TRUST SCHEMES.
Experience of a Lady Investor-Remarkabl6
Figuring to Show the Feasibility.


Figuring to Show the Feasibility.
st. Louis Globe Democrat.
The prosecution of inquiries among the
members Of the Union Trust Company as to
the principles and methods upon which it's
affairs are conducted is eliciting some inter-
esting information.
Mrs Lucinda Vandewater a widow, also
member of Trinity Methodist Church, in
which the trust company obtained such a
foothold was recommended as one who had
been very active in working up the scheme.
Thus far Mrs. Vandewater told the reporter
she was one of the fortunate ones, for she
had taken out six locals, paying 81 initiation
and $33 assessments on each,
and had drawn out 1896; four
on the same plan, for which she paid $685.
and drew out 1854; two for which she
paid $68 and drew out 1892. These were
locals, Glass A." Sine had paid out $204 for
six Others, and is confident she will receive
1896 next week. She had taken OUT four pol
icies in the Marion Trust at $40 piece, paid
two monthly assessments of 5000 each on
them, and two of $22 then paid 5000 on a
"big January one" and had received $66
thus far on it. She was doubtful about re-
celving any more, however.
The reporter tried to learn from the lady
who had been going to act as the agent for
the company" in Iowa, how it was that peo-
pie could draw out double what they put ill.,
She explained that the money was deposited
in the Valley National Bank, and drew per
cent interest The reporter endeavored to
show her that $120-twelve assessments of
$40 each-if on deposit whole year would
draw only $3.50 interest, and that in fact only
$40 of that sum was in for twelve months,
$40 for eleven monts, and so on, but, she
added, the last month they paid $40. That
made, with initiation fee and interest, only
$144 so, and still the reporter was anxious to
find out where the $500 came from.
in no
reply.
Then the reporter asked if three persons
put in 800 each, wouldn't there be but $780,
not three times 5000, and won't the same
rule follow out if there are fifty or $4,000?
Mrs Vandewater fell back upon the IA
nous reserve fund" She explained that
when three persons put in money the third
ones share was held back for the reserve.
The reporter asked her if she could ex-
plain the system on which, when three per-
sons put in $40 apiece to a common fund.-
two of them could draw out $40 each, and
the third run a chance of drawing out $40 on
some future occasion. Mrs. Vandewater ac-
knowledged that she could not but pro-
duced a sheet of figures which, she said, had
been prepared by a thorough accountant
She said that she presented the arguments
that had been presented to her by Wright
and the others.
The lady also told a remarkable story
about her connection with the indianapolis
company, which has failed with a deficit of
$3.50, 900. She had until recently forwarded
her assessments by check to bank in Indi-
annapolis, through which A. Collier trans
acted business. A short while ago her latest
check was returned, the bank refusing to re-
ceive it. Then Collier wrote her and others
that he had been in a little difficulty, but
matters were being Strengthened out and all
they need do was to send the money direct
to him at Chicago. They did so, despite the
old proverb.
Mrs Vandewater said that thus far she and
her friends had been fortunate in receiving
everything promised them. She had induced
great many to join the association, wanting
to give them a chance to make money like
herself, not working for the interests of the
association OF with any intention of defraud-
ing anybody. Some of her friends had
taken the big policies, the 5000 ones. This
they did at their own risk, not at her request
or encouragement.
In proof of the possibility of every mem
Der of the union realizing at least so per cent,
on his investments in three months large
sheets of mathematical computation, certi-
fed to by an expert accountant" are shown
by the officers and members of the company,
and are commonly taken as "clnchers."
In these sheets calculations are made for
steady increase in membership of fifty every
ten days and the final representation is to
the effect that after the enormous profits
al
in the treasury. An independent count of
the number of members paid off, according
to the showing of the sheets themselves,
gives as a result 244 with large profits to their
credit, and 506-there being $50 members
who have been paying their So entrance fees
and assessments and will have to content
themselves with division of the 1862 10,
each one of necessity getting much less than
he has paid in.
/ While Alexander Collier, of the Marion
Trust Company, announces the removal of
headquarters to Chicago" from Indianap-
oils, and expresses hope that the distribu-
ton will be delayed only a few days, as
intend carrying on the company here as if
no interruption of its affairs had been at
tempted" his son, William H. Collier, an
associate in the company, has been arrested
| in Indianapolis on complaint of holder of
eight certificates, and sent to jail in default
of $500 bonds. Young Mr.. Collier has
since been released.-Ed. Journal