The advocate and Topeka tribune., 1893-08-23

: !; $ 5$ $ / ! ! !; !: { 4 4 8 s s !: !: !;
16 4S so 112 IA 176 2OS 240 272
q a 1872 1872 500 500 AS 57S 7 70l $50 go go 1853 sS
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-
tinue 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 1 the
second number 3; the third number 4 the
fourth number 8; the fifth number 16 the sixth
number 80; the seventh number Ga; reyerting
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 q smooth agent Of
one OF these companies, the unsuspecting per-
son is at once tempted by the fine representa-
tions made that he can become suddenly rich
or lOedHhy IOithOut work. it is better than life in
SurGnce, and so on, when in fact IL Is moth
ing like life insurance, has but little resem-
blance to life insurance and should not be
compared in any manner tOtth legitimate life
insurance
Life insurance is based on a 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, 1t 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
ask you to let them handle your cash for
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 Ii back. But no
person can expect to make anything out of 1t
unless 1t should happen to be "luck." There
Is no money in 1t, because the investors must
put 81 600 into the scheme in order to get 81 900
out OF 1t, ana pay all expenses, officers and
agents besides.
But look for moment to what this scheme
will lead. Suppose a thousand persons each
buy o bond of 81 900 on which a monthly pay
ment OF 81. % must be paid by each holder Of
bond (besides the entrance fee Of $10). Then
bond No. can be paid (the 25 cents and the
$40 being retained for expenses). Now for the
U. L
gets $1,000. Who pays the other $998.75? But at
the same time you ask this question, ask your
self the question also who most likely will be
the holders Of bond No. 1 and all bonds which
mature early? Evidently the persons who or
ganiZe the scheme; the office men who run the
concerns. "Oh, 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 80? What Is to hinder your wife, sister,
nnnhpW OFAnnmnthar d
father, or some friend, or some deti-
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-
its which they have so recently discovered
for the good Of mankind,
The managers of these companies do not as
o 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 inquiring about the solvency 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 occu-
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
investigate their concerns. They usually an