Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-14
Prosecutors Office Requested
to Determine if Dealings
Are Fraudulent.
TREE MEN" EXPLAIN HOW
THEY MAKE MONEY QUICKLY Y
Declare Investors Get Full Re-
turn-Profit in Con
tract Rights"

WASHER was conducted today by the
Evening Star, with view to deter
mining the basis of the charges made
against the local concern interested
| in the washer"
In the presence of a Star reporter
! today several ''tree men" took the
matter of the fraudulent charges up
with the prosecutors office and asked
that the charges be investigated to
determine whether there was truth
in the report that their dealings were
fraudulent.
Second Assistant Prosecutor An
drew Van Blarcon said that the mat
ter of an investigation was up to
the grand jury and asked that John
j. Skillman, manager of one of the
local tree" firms, if he wanted a
grand jury investigation of the
charges.
Would Welcome Probe.
Mr.. Skillman replied that he want
ed the prosecutors office to investi-
| gate the basis of the charges and
see If there was enough evidence of
truth to warrant him in bringing the
matter to the attention of the grand
jury. The assistant prosecutor prom
ised to see that this was done.
IL was admitted by those forming
what is known as washer tree"
that the possibilities of making money
quickly are practically unlimited; that
as much as $1,000 day could be made
by active tree men," and that agents
nave made as high as $4,000 in a
few days.
The tree men," however, declare
that there is nothing fraudulent in the
transactions, as everyone who puts
money into the company gets full re-
turn for the amount invested in wash
ers. with the privilege of selling the
contract rights" to as many people
as possible
The police and prosecutors office
|. up to, the present time have received
no complaints from any retail users
of the washers. and there is nothing
to indicate that the washer is not
doing everything that the manufac-
turer claims 1t does.
consultation of the various
tree men" in this city together
With II. r. Crocker business mana
ger for the manufactures of the
washers. was held in the offices of
the International Sales Company in
the Kinney building today with a
view of determining what action
would be taken regarding an edito-
rial in a Sunday paper
1t was decided at the conference to
take the matter up with the United
States attorney for this district to
determine if the use of the mails in
selling the washer was illegal or sub
jected the promoters to punishment.
Profit In "Contrnct Rights,
The tree men" admit that there is
not so much money in actually re-
failing the washers to individual Gus
toners for private use, as there is in
selling contract rights"
When a person attempts to market
the washer to individual persons, he
only makes $25 on the first lot of fifty
and makes $3.50 on each washer he
retails after the first fifty are gone.
An agent pays $150 for the privilege
of securing the contract right" of
the washers, which permits him to
lease" the washers to individual
families for $3.50 and for the $3.50 he
also secures fifty washers
He also is bestowed with the power
of comforting the agency rights on
any other person whom he can induce
to invest $3.50 or more in the busi-
ness, but he must transfer with the
agency right fifty washers to the pur-
chaser
After man has once paid his $3.50
f.zr- IL
can secure additional washers in un-
limited quantities for 81 each.
The agent can invest any sum from
$3.50 up to $4,000 in the business. The
only advantage the man who puts
in up to s2,500 has over the $3.50 in
vestor is the proportionate increase
in his commission for each sale of
the contract rights.
But the man who puts $1,000 in the
business is known as a" tree man"
or "firm,' and he obtains a commits
sion from the business of every man
who purchases contract rights from
him or from any man to whom he
has sold the contract rights, provid-
ing the purchase is under So. 900.
AS soon as any agent gets a $4,000
tree contract" he ceases to pay
money to the tree man. from whom
he purchased his contract and be-
comes an independent tree man"
himself and makes a "rake-off" from
all the purchases made, by the agents
he has appointed until one of them
in turn becomes a tree man."
How Plan Is Worked.
If a man takes $3.50 worth of wash
ers and Immediately gets his money
back by making an agent of some
body else for $3.50 and then sells
second person the contract rights the
first man has made SEQ by the trans
action and the tree man who made
him an agent also makes $50 by the
deal. Whereas when the tree man"
sells $3.50 worth of washers he makes
500 clear and the other $50 goes to
the manufacturers of the washers
If the $3.50 agent sells 1867 washers
for $1,000 he makes $3.50 on the deal,
but his tree man" makes $2,5S3 on
the transaction and The manufacture
ers get 81, ,667 When the tree man"
sells a similar purchase he makes
$3,333 and the manufacturer only
81, ,667. The manufacturer in every
case is sure of a dollar for each
<rs...kfx....a On Para 2 (,olu.,.r. Al s