The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-10-20
RULED OUT OF THE MAILS.
Two Atlanta Companies Branded as
Frauds.

Gov. Northen, Capt. E. P. Howell,
Judge II. G. W. Palmer, w. r. Beau
prize and Other Prominent Business
Men of the City Identified With the
Concerns Gov. Northen Explains
That He Allowed His Name to Be
Used, Thinking 1t was a Legitimate
Enterprise-All the Other Gentlemen
Probably in the Same Boat.
Atlanta, Ga, Oct. 19.-An order from
Postmaster General Bisseu to Postmaster
Fox of this city, instructlng him to re-
fuse the Equitable Loan and Security
Company and the Southern Guarantee
Loan Company, both resident of Atlanta,
the use Of the mails, has created a sensa-
ton in business circles.
The Postmaster General in plain words
pronounces the business of these concerns
fraudulent, and his instructions are that
every letter addressed to these companies
shail be marked fraudulent and returned.
The order also prohibits the payment Of
any money orders or the delivery of reg
lstered mail to the companies named.
Ihe case has been suppressed in the To-
cal papers on account Of the prominence
OF the men connected with the business
which the government has branded a.
fraud.
Gov. w. J. Northen's name annears ~,
the printed matter of the Southern Guar
ahtee Loan Company as chairman OF
the advisory committee. along with e. p.
Howell president of the Constitutions
publishing Company, and w r.. Beam
prie' superintendent of the southern d.
vision Of the Southern railway. while tbD
Fidelity Banking Company stands spon-
sor for 1t in a strong letter of jnaorsa-
ment published in one of the eomnanv.s
circulars.
ouuge ~ g. w. Palmer, president of the
cotton states and International Exnosi-
uon Company with an advisory hoard -
prominent and influential business man
appears at the head of the Eouita HE Toa,s
ana Security Company, while the Amari-
can trust and Banking Company stands
OF AT least did up to recently, as endorser
OF the scheme. 'eA
Ihese names naturally command con-
nuehce' and the Equitable" which has
peeh IN business about four months has
taken in thousands of dollars.
Inc southern" has been in operatiop
orlly rev weeks. but with the names Of
NV Northen and Capt Howell, State
treasurer Hardeman and other men ~
nigh standing, 1t has very probabIv done
thriving bushes. -N
Inc managers of the companies claim
that they do legitimate business Roth
companies operate upon the same nlan
neiI scheme Is In the nature of lottery.
Members pay so much monthly as d,,o,
anu euCh month Cnrtafu
Gates are to be redeemed by the com
phhy at valuation Of SO for every dolIar
the member has paid in IL he has baen
paying 20 per month for three months
go IN all, The contract OF the companv
Is TO pay him $45. The scheme is q ,,ery,
alluring one to the venturesome T,ho
managers have been branching out In ali
parts OF the state, using the mails to carry
on thelr business and in this way the gov
eminent bounced upon il.
Inc men who manage the seheroa
claim that the lottery law does NOT cows.
these operations, because they agree IN
redeem the tickets at a fixed value ana
~ specHled time. Despite this claim
the government takes the ground thai
mere Is an element Of uncertainty about
the scheme "''Ue
Gov. Northen. I'm discussing his con-
nection with the Southern to-day said. ~
went into II ct the solicitation of 80
ucular friend. had no idea that was
expected to do anything but to be present
occasionally at meetings of an advisory
committee to pass upon reports of bust
ness transactions. I thought the business
perIectly legitimate, believing 1t to be in
the nature of building and loan assocja-
tion' Some time ago, however, l was
requested to write a number of letters
indorsing the agent, who was about to
make trip through the state. This was
more than l barganed for. / wrote sew
hHNN
from further connection with the corn
pany, and requested that my name be
stricken from all their printed matter.
The first heard of the trouble was when
a gentlemen came to my office with a cir
cular OF the company bearing my name,
and said / was at the head of a fraud"
There is no kick on the part of the MEM
bers OF the companies as yet. but the gov
ernments exposure Is likely to make
things lively for the companies.