The advocate and Topeka tribune., 1893-08-16

!: 6 6 {; !. ]; s s s IS IS s s s $
81 1872 800 800 as as 576 76 7oi $50 So $50 $50 1855 Sss
Continuing in this order by returning to the
lowest unpaid odd number after the payment
of seven bonds, until the multiple extends be-
yond the number of bonds sold, when pay
ment will revert back and bonds will be
paid in their numerical order, until by addi-
tional sales of bonds the suspended multiple
number is reached when that number will be
paid and this manner of payment shall con-
ttnue until all forfeited uncancelled bonds
issued are paid"
Also the following is clipped from the body
Of one of their bonds:
"The first bond paid shall be number / ; the
second number 2; the third number 4 the
fourth number 8; the fifth number Is; the sixth
number 80; the seventh number Ga; reverting
back to the first issued, unpaid or loWestsodd-
numbered bond in this series provided, how
ever, that all unforfeited, unpaid even-num-
bered bonds numerically lower than such
odd-numbered bond shall be first paid, and
progressing in like manner until all the bonds
issued and forfeited are paid"
Now, the plan may look plausible to some,
and when approached by smooth agent of
one Of these companies, the unsuspectlng per-
son is at once tempted by the fine representa-
tions made that he can become suddenly rich
or Bedlthy WithOUt york. 1t is better than life in
SurGnCc, and so on, when in fact 1t is moth
ing like life insurance, has but little resem
blance to life insurance and should not be
compared in any manner Wib Legitimate life
insurance.
Life insurance is based on scientific table
of mortality while in bond investment COM
pany you "pays your money and takes your
chances" and your chances" are usually to
hold the sack. In other words, it is lottery in
its worst FORM as these companies have no
backing and are usually formed by men who
have but little financial responsibility. They
n1lr 70 Lot n,l.g g..
you with the understanding that you take
their honesty as security. They give no bond
to the state, nor do they make any deposit
with the state in any manner that they will
fulfill their obligations. They take your money
and If after deducting their expenses (Which
is very indefinite sum and may be whatever
they choose to make it), II it holds out, some of
the investors may get some of it back. But no
person can expect to make anything out of 1t
unless it should happen to be luck" There
is no money in it, because the investors must
put $1,000 into the scheme in order to get $1,000
out OF 1t, ana pay all expenses, officers and
agents besides
But look for moment to what this scheme
will lead. Suppose q thousand persons each
buy bond Of 81 600 on which a monthly pay
ment of $125 must be paid by each holder Of q
bond (besides the entrance fee of Sl0) Then
bond No. can be paid (the % cents and the
$40 being retained for eXpenses). Now for the
Investment of $685. the holder of bond No.
gets $1,000 Who pays the other S99S7j? But at
the same time you ask this question, ask your
self the question also who most likely will bel
the holders Of bond No. / and all bonds which
mature early? Evidently the persons who or
ganize the scheme; the office men who run the
concerns. "0h, no." says the agent of these
companies; our rules and bylaws forbid the
officers holding any OF the bonds at ALL es-
pecially the bonds which mature early" Is
that so? What is to hinder your wife, sister,
aunt or nephew, niece, grandmother, grand
father, or some friend, or some icti-
ciOus person even, holding these bonds
for them in their names? Again, If
there is so much money In the scheme, why
should they bar themselves from such bene-
fits which they have so recently discovered
for the good OF mankind,
The managers of these companies do not as
general rule undertake to operate close to
home. We hear Of our Kansas bond invest
ment companies operating in Nebraska, Mich
igan and Texas. We receive letters almost
daily inquirtng about the solYency OF the
companies, business standing, ETC. These let
ters generally state that the agent represents
to them that their company has the endorse
ment Of the state officials of Kansas, and that
some or all OF the state officers have purchased
their bonds all of which is untrue, being man
ufactured out of whole cloth, as no state officer
of Kansas holds single bond Of any invest
ment company, neither have they knowingly
endorsed any Of their schemes. The only
thing these companies have Is charter
granted by the former administration, which
Is invalid and void because the statute does
not authorize the things contained in said
charter. As a matter of fact, these companies
are usually hardly known In the town or city |
in which they are organized generally oceu- |
pying some back room or private residence in
which their clerical work is done, and because !
they do not undertake to work their scheme /
on those who have 80 good an opportunity to 1
investigate their concerns. They usually an