The daily journal. (Salem, Or.) 1899-1903, 1902-02-08
DIAMOND
CONTRACT
SWINDLE
Insurance With a 5000
Diamond Thrown In.
The Insurance Press Says the
Postal Authorities Should
Suppress II.

The unfortunate residents OF vIroul
Western states are again to be "done
by bubble emanating from Minneapo.
lis, Minimize Tontine Savings Associ-
alton, with "Dismon contracts"
The Insurance Press wonders how
many persons remember, to their cost,
the advent in l8S7.lSS3 Of the great
American Building & Loan Association
OF Minneapolis.
That was somewhat similar get rich
quick affair, although on larger scale.
The American Building 4 Loan prom
ised much and gave nothing.
How many unfortunate families we're
bankrupted by that scheme, and how
m any are to be duped by The Diamond
contract
The Tontine Savings Association, 10
order to avoid coming into conflict with
the insurance laws, or with the anti-lot-
terry law, offers to give $500 diamond
on the following terms.
When you sign an application for
Diamond Contract you paJ the agent or
the association five dollars down, whe e.
upon an explicit contract is delivered to
you by the association. This contract
calls for the payment OF 81 25 per week
for sixty consecutive weeks, making the
total payments amount TO $50. II you
keep up these payments for the full six
ty weeks, then when the contract is
reached in the order of performance, that
is, when you're ls the Oldest outstanding
contract, the association will deliver 20
you twU-carat commercial white, clear
and fawless diamond worth 500 at re.
tail.
All contracts whatsoever Issued by any
person or concern, should either guaTan-
tee as to the amount or as TO the time.
in most cases II not all, building and
loan societies or companies guarantee aS
to the time OF payment to their respect
i've patrons and estimate the amount
which shall DO due them.
In tie plan of the Diamond Contract
issued by this association we reverse that
order and make amount the essence OF
our contract and the time isestimated.
To illustrate: II you pay the sixty con-
secutive payments, your contract the n
becomes fully paid and non forleitable,
aud you will be entitled TO receive the
diamond If reJch in the order Of per-
iormanCe al that time. But should the
period Of maturity exceed sixty weeks,
or run over, as the common expression
is, you will be to no expenes of further
payment Of iAstallments, but will be
holding practically what ali insurance
company would term paid-up policy. In
their companies tho policy would be pay
able to your beneficiary At your death, in
which case time 10 also estimated, and 10
termed your period OF expectancy OF
life" You may die much earlier than
that perlod or you may live long after IL,
but the law OF average protects the COM
pany or association in It's estimate. In
our case the amount would be payable TO
YOU when yours became the oldest out
standing contract. The period OF ma
thrifty will not remain steady at any Civ
en- point, as the volume OF new business
and amount of lspses are subject TO the
same Quotations that surround any or
dinary business enterprise, but the law
of average fully protects you against an
unreasonable length of time and guaran'
tees perpetuityto the business.
1t is said that fully 80 per cent Of the
membership OF beneficiary organizations
let their payments or dues lapse at one
period or another, and ~ naught is Te'
turned to them, such lapses accrue TO
the benefit OF those. who do make lull
payment.