Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-02-24
|G[I RICH QUICK FAkE.
State Authorities at Lincoln
Neb.. Expose Scheme to
Swindle.
Alleged Cooperation Company
Which Makes FIattering Or
fers to Subscribers.
Some of the Impossibilities
Which the Agents Promise
Their Dupes.

! Lincoln, Neb, Feb. 24.-"Why pay
rent when we will buy you a homer
! is the slogan blast of a new get-rich-
quick scheme which is scoring an inn
mense success in Nebraska, despite the
mandate forbidding it's operation is
sued by Secretary Royse, of the state
banking board. The plan of the con-
Germ is strikingly similar to the famous
tontine diamond scheme which cleaned
UP S25O,0O0 in the west in a compare
lively short time.
The company purports to be cooper
ative and avows the benevolent object
Of furnishing homes to all who have
them not In reality 1T is q vast part
rership. With unparalleled generosity
the company agrees to lend the money
of subscribers to other subscribers
without interest, and Furthermore to
provide insurance for all who meet
with death or disability, by releasing
them from all liability
All that Is needed is reimbursement
for the expense involved. declare the
Irospectuses and agents of the concern.
Contracts are entered into with sub
scribers who pay S1.35 month. Con-
tracts, like those in the diamond
scheme. are numbered and mature In
their order. Just as soon as thousand
dollars comes in to the company loan
IS made. The subscriber. after receiv-
ing the loan, pays s5.35 month. This
rate would efface his liability in six
teen years and eight months. Five dol
lars goes into the loan or contract
canceling fund. Twenty-Five cents goes
tC pay the expenses of doing business,
and 10 cents goes to the insurance
fund. OF the S1.35, 81 is turned in to
the loan fund, 20 cents to the expense
account and 10 cents to the insurance
fund.
When patron draws out his $1,000,
he deeds his property to the company
OF its agent. The full value of the land
to be improved is accredited in the
loan. In case of death, the property is
1t once decided back to the heirs of the
contract holder. When sickness comes,
the unfortunate one can double up on
his payments after he gets well. A
similar proposal is inserted with refer
SilSG W SettitlS put Ol eIlpiOyIleill. To-
tai disability absolves from all indebt-
edness and the patron goes free
The loans are made without interest.
The contracts are curiously phrased
and many of the passages would be in
tcrpreted by the courts to mean some
thing entirely different from the free
translation that glibly rolls off the
tongue of the agent of the company.
Insurance men scott at the idea of in
surfing the patrons at the rate of 10
cents a thousand without age limit or
physical examination. Yet the COM
pany has written thousands of con-
tracts in the state.
Secretary Royse, of the state banking
sentatives of the concern to the fact
that certificate from the state author
tiles must be issued to all loan and CO.
operative companies. A showing was
made before the board, but it was I'M
and Secretary Royse no.
titled the agents of the company to
cease doing business. Ostensibly this
has been done. but the agents are still
reaping large returns in the rural dis
tricts of the state and among the scan
cities. The Kansas City Star exposed
a similar fraud and is making an ag-
gressive fight on the concern, regard
less of a suit for $250.O00 damages for
libel