Arizona republican., 1911-03-05
JACKSON CO.
 IN TROUBLE Makes Voluntary Surrender
 to Auditor Mauk ITS BEST ALTERNATIVE Threatened Legal Proceed ings Brought It to an Accounting Believed to Be Descendant of Jack son, Miss, Company.

Territorial Auditor George A. Mauk yesterday took possession of the of flee and books and papers of the Jackson Loan and Trust company of Phoenix, and closed and locked it's office doors Mir. Mauk believes the company was violating the law in va rious ways. particularly in not having filed a bond with the auditor and se- curing a license for doing a building and loan business as the law requires. for the protection of the stockholders. The auditor had had previous confer ences with the managers of the com psny. had advised them that in his opinion their business was not legit- innate one and that to save trouble they had best turn it over to him voluntarily and have it settled up. If they could make a proper showing. well and good; if not the business would have to be closed up and if they refused to make a voluntary surrender of their records and effects he would take legal steps against them. They decided to act on his advice and no arrest was made.
 The governor and the attorney gen eral were notified by the auditor as the law requires and the next step will be the institution of proceedings by Attorney General Wright asking for an injunction and the appointment of a receiver to wind up the business of the company. The president is J. H Berry and the secretary and man. ager is J. A Morson. Though they are under no bond there is no danger that they will not appear when want ed as the auditor has ample informa- tion- for keeping in touch with them and anyhow the men seem inclined to want to get out of their entanglement as easily as possible and square them selves with the law.
 The auditor found few books or pa pers beside the advertising literature and contracts in blank. and the rec ords as far as he has inspected them do not clearly show what the status of the company is. The records are very meager and if they represent the entire business of the company the losses of patrons cannot be large for the patrons do not appear to number over forty and the company's busi- ness does not appear by the books to cover any period preceding the first of the year, while the contracts with patrons seem to have been sold for s1 cash with monthly payments of s1. But whatever the business may have amounted to there are no assets in evidence Only publicity will develop whether there have been business transactions that are not of record.
 A cursory examination of the com pany's literature indicates that the substance of the business plan was to sell contracts for s1 down and $1 per month. and that when a certain num- Der of payments had been made the patron was entitled to a loan of S100 on each contract. Presumably profits were expected largely from lapses. as- suming that no fraud was intended. It seems that no loans have been made vet and in reality there was nothing to loan for so far as shown there was no cash capital or sales of the cOmpany's stock. Where the prof its were to come from is hard to dis cover at this time unless it was ex-