The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-10-31
ANOTHER TRAP OPEN.
A Certificate System Which De-
ponds on Lapses.

Mrs. Mary Meehan of Piymou tn street.
yesterday complained to Police Justice
O'Donnell against the National Custom
Clothing and Merchandise Co. which
has q branch office in tue Weldon build
ing. She believed she had been victimizsd
by the concern, and was afraid they had
Qulled her on. OF SIG. which she mad pal u
into it on weekly iustalments Of a dollar.
Every time She called at the branch oflre
she either found the doors cloaed or else
there was no one present who could tell
her ANYTHING about her claims. The
plan OF the company is that OF Issuing
certificates, enabling the holders to pro-
cure any articles of merchandise In gsn-
eral use to the value of S35 on each GER
tiicate at a cost of SIS. The concern acts
on the cooperative plan, and depends
upon lapseS IN order 10 meet theif gar
ing promises.
AS Mrs. Meehan is a poor woman. the
police set about investigating the con-
cern.
They find, whatever complaint may be
made, that the company is operating
within the limits of the law. 80 many
of these certificates mature every week.
Mrs. Meehap was told by a gentleman
not connected with the concern that 1t
would not cost her more Than Sl5 TO Sc
cure a matured certificate for $50 worth
of goods. For the week ending October
II about thirty of them matured. A
statement is published every week giving
of matured certificates. Upon the
statement referred to the police
| found nearly all the matured certificates
| were held by Newark people. The main
| Office is IN Newark. Chief OF Police
Henry Hopper OF Newark and his
as holders. The names OF u number OF
other holders were given, with addresses
at Newark Police Headquarters, aud four
or five others at No. A Williams street,
directly opposite. Six of them had been
paid to Henry Grum, No. 406 Market
street, Newark, and three TO George
Grum of the same address.
Detective Dalton was sent to Newark
Yesterday with orders to see these people
and ascertain what it cost them to receive
these matured certificates. Chief Hopper
and daughter each received one for SIS
and Grum and the policemen paid from
SIG to $50 for their certificates.
thief OF Police Murphy consulted Pros
ecutor Winfield, who read the advertise
ment carefully. The Chief was told that If
he could secure any information that the
| representations were false, to arrest
those engaged in the concern for con-
splracy.
Mrs. Meehan was sent for and told by
the Chief that for The present he was I'M
nDA0 w e 0hOAS AS h&0
dence to warrant him in resOrting to
criminal prosecution. He advised her to
either keep on paying in her weekly in
stallmenss so as not to lose what she had
already paid in, or else get the gentleman
who advised her to go into the concern, to
take her stock off her hands. She re-
piled that he had already done 20.
In discussing the concern, the Chief
said to a reporter for The NEWS this
morning:-'.It's clearly a bankers game.
They have the best OF it, as they are sure
winners. Their business Is principally
with poor people, a great many of whom
become unable to meet their payments
from various circumstances-lack OF
work, illness, etc. AS a result they
lapse, and the concern freezes
to what may have been paid IN.
TT makes a nice little nucleus. Take
for instance the statement for the week
ending October II. There sre ten lapses,
no knowing, OF course, how much those
people paid in. Say So or the average
there's $50. The statement for the week
ending October 10 shows six lapses. We
have Ieen unable thus far to secure bul
these two statements. NV advice to poor
| people is TO let such concerns alone"