The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-05-21

mere depicted. HC lOllOWHiS al NlSiS
is published for the purpose of show
ing the possibilities and illustrating
principle.
The article is taken from Farm and
Home one of the great eastern agri-
cultural journals and one which has
made a persistent fight on companies
providing an easy way to wealth. 1t
follows:
A SCHEME THAT IS BEING
WORKED WITHOUT LET OR
HINDERANCE-NOT SUBJECT
TO FEDERAL OR STATE SU-
PERVISION-HOW SCHEME
SCOOPS IN MILLIONS-FIRST
INSTALLMENT OF AN AMAZ-
ING EXPOSURE.
Small deposits are being made by
thousands Of people, to an aggregate
Of millions Of dollars, in the institu-
tons with which the scheme works.
The following plain tale reveals its
true inwardness The story is here
told back end first'-but this is the
business end, SO far as concerns the
hard-earned money the deposltor de-
posts in such banks.
The glib agent or glittering circular
of such bank holds out such apparent
inducements in such a plausible way
that you easily may be led into apply
ing for a contract" with the bank.
Even though the agent may verbally
misrepreSent, or the literature skill
fully slide over the points exposed be-
low, the application you sign and the
contract" you accept constitute the
only tangible evidence. Hence it is
easy for the agent to rope in lot of
people and make fat income for him
self.
Right here is the first secret of the
success" with which this scheme is
worked: There's lot of money in it
for the agent who obtains the deposit
or. But there is a still bigger profit
to the bank and its promoters--an un-
considerable profit, that may amount
to veritable Fleeing of depositors.
What Depositors May Sacrifice.
First. You make a present to the
agent of 5000 with each contract" he
induces you to apply for 1t obligates
you to deposit So monthly on said
contract for so months.
Second. The $l8 you deposit in the
bank on each contract during the first
three consecutive months go to the
bank, NOT to you and not to your
credit.
Third. Thus you are "OUT" a total
of $24 to get in" on each contract
SO you paid the agent and $l8 you
made the bank present of.
Fourth. If prior to making II
monthly deposits. you fail for two
consecutive months to make your re-
gqlar deposit, ALL you have deposit
ed is FORFEITED to the bank, &C
cording to the Contract you have
accepted. If you quit after ten months
you lose the whole of 500 you have
deposited, besides the So you paid the
agent, making your total loss 500 OH
each contract What think you of a
bank that, thus gobbles no 100 per cent
of your deposits, simply because YOU
wish to withdraw before the end of
enc year, and gives you back nothing,
not even interest?
The Loan" Fund.
The above is bad enough, but it is
only the beginning, for
Fifth. In the expectation of becom-
ing borrower, the contract compels
you to donate to the bank SIPS out OF
each 50 you deposit in it monthly
AFTER the third month. Therefore
in addition to giving up So to the
agent and SIS to the bank, you proceed
to give outright to this bank 20 per
cent of each of your deposits! What
for? Why, for the privilege of do
ing business with such bankl Even
this is not the limit, as you will see
now:
Sixth. Remember that in the first
place you gave up to the bank ALI
OF your first three months deposit
amounting to $l8. Now of your next
nine months deposits of So for each
contract, you give up outright to the
bank times $l.25. or a total of $ll.25
The remaining 9x$47S, or $42.75, com.
prises that part of all your deposit.
which has gone into the loan funC
during the first twelve months. With
out reference to the present you made
originally to the agent, and confninl
ourselves only to the II deposits yot
make the first year, amounting to So
observe that the bank retains 10 itsel
SIS plus SLIPS, or total of $50. rs
leaving only $+275 to your credit il
the loan fund at the end of the frs
year. Thus you are stuck" 4 pei
cent of your first years deposits ovei
and above your 50 paid agent, EVEN
If YOU STAY I'M But the end i.
not yet For,
Seventh. If you withdraw at thu
emu OF inns hrSt year. you may ge
back only HALF of your contribution
to the loan fund. Now half of $42.75 be
ing $2l.37, that is all you are entitled
to get back if you wish to draw on
your deposits at the end Of the, frs
year, And the bank agrees to re
turn this $2l.1 only in case there i.
cash enough in the treasury OF tn,
series" to which your contract be
longs to enable that series to do so
n other words, out of the total of 81
that You have deposited duTink tn,
first year-$6 with the agent and 81.
with the bank-you may withdraw
only $2lH Thus you will have sacri
feed $5663 out Of your SIS Thai !,
to say, if you quit in disgust, yor
lose the interest on all your deposit,
for the year, and get back only abou
II cents out OF each dollar you de
positedi
Eighth. If you don't understand
Al