Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-11-10
FRAUD STAMPED ON ITS FACE.
But it Was Apparently Such a Good
Thing That Wage Farmers Bit
With Great Ayidlty.
BIG DIAMONDS FOR MERE NOTHING
President Of International Mercantile
Company Leaves Denver on
"HurrIed Business Trip"

hurried Business Trip"
There Is deep and abiding grief in salt
Lake railroad circles and elsewhere
over the fact that the international
Mercantile company has apparently
closed Up and left some 200 trustful
wage earners IN Utah in the urch
Among those who have been hit hard is
proprietor Of one Of the leading ho-
tells in Salt Lake number of travel
ing freight and passenger agents To-
Gated here, and a host Of young clerks
and others who were induced to take
out contracts with the concern
The scheme was 80 apparently a
fraud that II is a wonder that anybody
was induced to sign contracts for dia-
monds, but there were many in Salt
Lake and Ogden who did one OF the
victims this morning stated TO tho
News that he was trying to make
some easy money, he knew that the
thing would ultimately break and 20 up
the fume, but he believed that as he
held one Of the first contracts written
here that he would get his money. The
scheme was a weekly assessment af-
fair For every 500 paid in by a sub
scriber, for so weeks the comuanv
pledged diamond or $50 in cash-in
other words it agreed to pay $3.50 for
every 81 invested Just so long as there
we're new subscribers coming IN daily
this was possible but when they fell
of the crash came.
HURRIED BUSINESS TRIP.
The promoter Of this latest get-rtch.
quick concern was II. W. Reed who
styles himself president Of the Interna-
tional Mercantile Co, Three weeks ago
Reed left his home, 49, Pennsylvania
avenue, Denver on a business TRIP"
since that date his wife, TO say nothing
OF some 400 dupes have been wondering
whatever has become OF him. From
letter received by a local railroad
man this morning, Il Is learned that up
to Wednesday there had been no word
Of the vanderer IN any shape or form,
AGENCY ESTABLISHED.
Six months ago, Reed burst upon salt
Lake armed with letters of introduce
ton, He secured the services of n
Young man here who had a railroad
acquaintance, ana he promptly gave
nm the exclusive agency for Salt
Lake, The way this young man worked
the railroad fraternity was q sin and
shame, He worked up a seemingly
endless chain of introductions, and se-
cured numerous contracts for $3.50 dia-
monds ON 81 25-a-throw basis. Tn
hlushngly he told the boys to get in
on good thing and that he was going
TO let the railroad men in on the ground
ioor. After he had sold to the rail
ha ..ts
The dear old public, and Il was the dear
Old public that was going TO get its
head bumped If anyone was due 20 get
plnched financially.
NO SYMPATHY FOR VICTIMS.
Those who went into the scheme are
setting no sympathy from their
friends today-the verdict being that
ihey got Just what was coming to
them The company paid dividends
all right, and there are some diamonds
on view In Salt Lake that were
procured through the great phil
anthropic international Mercantile
company but there are also some
peope-the big majority in fact
VINO nave bought some very costly eX-
per.ences
HERE IS THE SCHEME
In order that the public may be pro-
leeted from Just such schemes here
is a copy Of the explanations con-
famed on a folder issued by the Inter-
national Mercantile company;
when you sign an application for
one Of the diamond contracts YOU pay
me agent Of the company Sl,95, which
pays you for one week, or s. (being
the limit the company viii accept at
one time on each contracO, which pays
you four weeks, whereupon an explicit
contract Is issued to YOU by the COM
pdny, which calls for the payment Of
300, II YOU keep up these payments
ioF me full so weeks then, when there
is $3.50 IN the redemption fund OF the
company, and, all contracts of prior
uale ana number have been retired by
forfeiture or redemption. we Will de-
llVer to YOU or your legal Representative
or assigns, commercial white and
GEAR diamond TO the value OF $3.50 and
u you do not want the diamond We
WIZ hnd purchaser who Will pay $3.50
cash Tor the same
HOW IT is POSSIBLE.
Those who are not familiar with
'"NIne earning powers VIII naturally
question how company fulnlls its OBJ
for 81. '' " '''
We pay $3.50 for every apparent 81
rleiyed by growth, change and average
lle three principal clements that have
Permitted all life insurance companies
w pay $1,000 for'every S12 apparently
received
We place all money from lapses,
ulos and transfer fees together with
eU per cent Of the weekly installments,
lhe Denver Savings bank, which Is
u'lp subject to check for our redemp-
'"n OF contracts, This money cannot
p' drawn out by the officers of said
"Wpany, 1t is checked out for the re-
sumption OF contracts only"
GOT HIS MONEY OUT
10 is stated that Reed had informa-
w mat the Denver Savings bank was
ons TO close its doors and that he
new the funds out OF the hank several
.gls prior TO the crash The closing
we bank had nothing TO do, It is al
ecu with the disappearance of Reed
IN the meantime the Frenzied Finan-
'ts OF Utah and Colorado who were
up9ced 10 part with their savings, In
uWng the Salt Lake hotel man. who
Guy several hundred dollars. what TO
We Heed very badly