The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-03-24
F FRAUD CHARGES
FREELY MADE
CAUSE ARREST
Secretary of Equitable Loan
Company Accused of
Getting Money Under
False Pretenses.
OFFICIAL PROBING
Is TO BE MADE
Many Clients of Company
Say That They Have Paid
Money Without Prom
ised Returns.

"HAT the Equitable Loan & In
Vestment company Of Arizona
has fleeced Utah people OF many
thousands of dollars by means
OF fraudulent loan contracts. in
the assertion of the county. authorities.
who. acting on information at hand yes
terday arrested J. l.. Wyatt. secretary
OF the company. on q charge Of obtain
Ing money under false pretenses.
A statewide investigation has been
started that is expected 10 result in ths
arrest Of other officers and ausnts OF tbs
company and the ultimate expulsion Of
the company from the Utan field.
County Attorney L F. Wiley said yes
terday that he had received four or Eve
complaints daily against the company
from almost every county. In the state
The complainants for the most part are
said TO be farmers, who not only have
paid out sums varying from 500 up
ward. but have given mortgages on their
farms and property without receiving
equivalent OF any kind. 1t is alleged.
Basis Of Charge.
Wyatt was. arrested oil a warrant By
Deputy Sheriff r. L. Eddington and was
lodged in the county Jail. The specific
charge against him is tilat he induced
Harvey Fisher OF Charleston. Cache coun
Is. 10 give him 500 under promise Of
$1,000 loan to be made after Harvey
had paid the money. and that he has
failed to advance the money. although
the company holds 4 mortgage on Fish
-er's property covering the loan that
was never made.
Wyatt was taken before Justice P M,
Bishop and was given until Tuesday 10
plead to the charge. Lis bail was fixed
al $4,000. which he succeeded in raising
at IL o'clock last night. The accused
secretary declares he is guilty ot no
wrongdoing and that fraud has not en-
tered into the operations of the COM
pany so far as he is aware.
The complaining witness against
Wyatt is J. l.. Brown. who is acting as
attorney for Fisher. II is charged that
Fisher was promised $1,000 loan Novem-
her 90 of last year and that prior to that
time ne paid Sl00 as REQUIRED by the
compsny's contract and gave a mort
gage on his farm. II is alleged that the
company has refused the loan repeated
", declaring that subscribers 10 the
contract had precedence over him.
Fishers case is Identical with scores OF
others about the state. who have entered
into the contract as q result OF the gen
erous promises. The company cou-
tract is said TO contain a certain obscure
clause which provides that the loan shall
be made If sufficient funds are on hand.
This clause has been CLOSED over. 1t Is
said so as to be hardly detected by the
prospective client of the company.
Complaints Numerous.
Willard Done. state insurance commits
sioher, said last night that complaints
against the Arizona company had been
pouring into his office for months. but
as II is not an insurance company he has
been powerless to take official action
against it. though he has assisted ma
terially IN tho gathering OF evidence for
prosecution.
The amount Of money paid III advance
under these loan contracts varies from
sl0O to s1100. so far as the authorities
have been able to learn. he said, 1t Is
declared that scores OF mortgages In IA
vor of the company are on record I'm the
state where there has been not single
dollar advanced on the promised loans
When the Equitable Loan & Invest
ment company first entered Utah 1t es-
capped the posting of the usual $4,000
bond with the secretary of state required
by Utah law FOR the protection OF the
companys contracts, claiming exemption
OH the ground that IL was not II building
society.
The extent OF the company's alleged
fraud cannot be accurately determined
until full Investigation has been made.
1t is estimated by the county officers.
however, that the aggregate sum Will
run close 10 $4,000. There are snid
10 be several agents now working IN the
state and steps have been taken to ap-
prehend them. The state manager for
Utah Is T. p. Kelly, with offices in the
MCINTYRE building. IL is said that Mr.
Kelly filed notice of his resignation sew
eral days ago.