The Saint Paul globe., 1904-08-03

| succeeded Beardsley as local manager,
was arrested, pleaded guilty and was
nned the same amount.
Says Entire Scheme Is Fake
Having gone into the methods of
the company thoroughly can say that
there is no doubt but that the entire
i scneme is a. fake, and that the in
| vestors will never be given the homes
| that they expect I am co operating
with the authorities of st. Louis in
| an effort to bring Sullivan to justice
He purchased szthe business from the
receivers off, Neill & Eppstein, since
! winch time there have been complaints
| to this office almost weekly. 1t has
been found impossible to secure the.
return of money paid in, and now the
only recourse is to discover some Nv
under which Sullivan can be convict
/ ed.''
j. r. Olmstead, when seen at his
home, 4272 Pennsylvania avenue, ASSERT
ed that, from his personal knowledge;
the business of the company, so-called,
/ is 1HeSltimate, and declares that as
soon as he discovered this fact he sew
cred his connection with 1t and began
at once to make facts known to the
polieyholders. A meeting was held by
/ the investors a week ago. He says that
he was arrested in Lincoln because the
business of the company violated the
laws of the state of Nebraska, his
bonds being arranged. fors.by the COM
1 pany, so-called As the trial of his
case is not set to occur until Novem-
ber he refuses to go back, on the claim
that his bondsmen desire to surrender
/ him to the court. He says:
oImstead Tells His Story
When I became convinced that the
company was conducting dishoneStebus-
fr,,vy o-ierr ion to CIII-
l1Van IN St Louis and began to notify the
spolicy-holders that they were being blk
/ ed. MY course soon came to the ears OF
/ Sullivan, who has sent two men to. st.
Paul in an effort to induce me to return
to Lincoln and face the charge that was
really brought against Sulhvan,s business.
| pond having been furnished by straw
men at the instance of Sulliyan's agents
Homer b. KelSo was arrested in Lincoln
also, and his bondsmen were the: same
that are my security. and he was induced
! TO go back to Lincoln from Minneapolis
at the time that l was first arrested. He
| Is now in Jail in default of 81 900 ball. and
writes me that he is putting in his time
/ writing letters to the policy holders OF
the company advising them of the situa-
| ton.
From my knowledge of the operation Of
the so-called company, which is owned
absolutely by w. B. Sullivan, can say
/ that policy-holders who are expecting to
| secure returns from their investment are
| wasting time. All the money that has
\
what Mr.. Sullivan considers that he is
| entitled to because of the $4,000 he in
| vested when he bought the contracts, has
/ been consumed in litigation. There is
| hardly state IN which the Home Co
/ operative company has done business that
it has not come in conflict with the laws
1 and has found it necessary to contest in
the courts for the right to do business.
| I do not believe that the policy holders
| will realize anything from their invest
ment. unless the plan of the st. Paul and
! Minneapolis policy holders to seize upon
the assets of Sullivan should prove sue
/ cesSful
Folk VIII Cooperate
| 1 have been twice arrested for having
! opposed Sullivan; my home is almost coll
stantly shadowed by, detectives in the en-
| pioy OF somebody, but they will find it
difficult to kidnap me. If necessary will
/ the state. County Attorney Kane has told
the Lincoln agents of Sullivan that he will
j not consent to my being taken from the
state, and we have secured, through
agents of the policy-holders, the co-epera--
ton of Circuit Attorney Folk, of ST.
+ Itouis, who has promised that Mr.. Sulli-
Van var will soon have his day Of accounting.
| We have treason toabelfeve that in few
days there will be an announcement from
| st. Louis that will, put an end to the
Home aGoeoperatiye company.
/ "A visit9 to the office sof the company
1 in the .Chambers0ofl Commerce building
| developed the fact that d young sworn-
| an stenogra pher was in charge. She
said that Nv. f. Jepson, the local agent
| of the company is in Kansas City at
| tending the funeral of his wife, but
| that he was daily expected to return.
She denied the rumor that Jepson
would not return. nis@
The young woman, was not prepared
| to make any other statement, even
| asserting that she could not explain
4 ralo rx,I,i ia1z 10 NV on
crates.
The company's Scheme
The Home Cooperative company's
scheme is simple and yet complicated.
1t issues policies of $1,000 and $4,000,
on which payments are made at the
rate of $1.40; more or less, per month
| on each $4,000. Instead of guarantee
| ing that, the holder of the policy shall
secure home IN a certain time, it is
specified that the date shall not be
longer delayed than five, ten, fifteen.
twenty and thirty years. the amount
of premium depending upon the length
of time the policy runs. Practically
all the policies are written on the
thirty-year basis, giving plenty of
time in which the assets and liabili-
| ties may change hands.
On the basis of a thirtyyear 81, 600
| policy, for instance, the circulars of
| the company assert that the redemp..
ton price is $38 at the end of two
years and a proportionate amount for
future years, but it is claimed that the
policies are SO worded that the COM
pany is not compelled to pay these
amounts unless it sees fit to do so. In
| addition to the monthly expense, the
amount of which is regulated by the
amount of the policy and the length of
time it shall run. a membership of
SIS is charged for policy of $1,000 and
SO for each additional $1,000.
The difficulty with the entire scheme
is that it is not made obligatory to
furnish the home until the period for
which the policy is written has ex-
pired, at which time the policyholder
is expected to receive either the full
amount of the face of the policy or be
given a house and lot of equal value.
Stuck away in an unobserved por-
ton of the contract with the policy
holders is a provision that when $100
has been paid on this contract, said
company may purchase said contract
holder real estate under the terms and
conditions herein named" but such
purchase is entirely a prerogative of
the company, concerning which the