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Show TRU T H y loans on r bb that is what is promised. And at that representing the State Council there are no preliminary physical ex- men. II toms. 'r in 1901 tnere was organized in payments from its customers. Home City, or the avowed purpose of Co-Operat- ive v en-- e earners and parties of tea to become the owners i system of small payments a number of years. The .ture of the association was (cable inducements which it Omeseekers to invest their i it. These inducements, it that the concern appeared . . . . nature of a benevo- institution: than a company organized on a purely business basis."' Since the launching of the original company, half a dozen of similar concerns have sprung into existance, operating practically on the same lines. One with a name very similar to that of the parent institution ' has been operating in Salt lake for some little time. It is called the American Home company, and has a place of business at 51 West Second South street, which.it calls its general western 'office: Its headquarters are said to be at 511 A and B, Hall building, Kansas City.- The original company, says the Chiof Jan. 21, .is a cago Record-Heral- d successor of the old National Building ' Associations,' and its plan of business was recently described as a 'lottery and fraud., by assistant . .'Attorney. .General Rose of Nebraska, in an opinion which resulted in the barring of' the company from that state.' - " r;;' The officers of the company operating in Salt Lake, are. very .particular. not to. give out any of their blank, contract forms; not desiring' it to get' into the head ? of rival ' brganizations or investigators. The officers of the- American Home. company. are:. J.. L..: Fulkerson, president and manager; O. W. Huff, vice president; Geo. M. Stevens, 2nd vice president; V; A1 Hillman, financial secretary; A. S. Lyman, special counsel; O..W. Huff, director and general manager for the western states. The plan of operation is described by - . : r - . 1 - the Chicago Recoitf-Heral- d as follows: ..The company proposes without a cent of capital of its own,' to lend the money of subscribers to other subscribcircle.. It ers in an of the value full promises to loan to the land taken as security. It promises to do this without charging interest, and with only a small charge for expenses. It. promises that there shall be no forof dues: It feitures for subscriber the to insure promises or from loss sickness, disability against case this it in last and promises death, his heirs a free reiease from the debt. '.Some of these promises appear in a modified form in the contract which the company offers, to its subscribers, and others do not appear at all. Taking it in detail, the plan of operations is as follows: Contracts for $1,000 each are made between the company as a partnership and the subscribers as outsiders. Every subscriber binds himself to pay $1.50 a month until his turn comes to draw money. Of this, f 1 is to used for the 'home or loan fund, 25 cents goes for expenses and 25 cents is placed in a reserve or insurance ever-revolvi- ng non-payme- nt , . fund. - First come, first served, is Jhe com- contract faf numpanys motto. Each bered, and as fast as money accumulates it is loaned in $1,000 sums to the subscribers in the order of their applica- tions. When his turn comes and a subscriber borrows his money on the security of the real estate he buys or the house he wants to build, he begins to pay it back at the rate of $5.50 a month. The odd cents are applied for expenses and insurance, and the $5 goes to the repayment of his loan. The company requires no interest . : : . non-employm- 1 , -- , The Womans Club met in regular session on Tuesday afternoon. Mrs. Johnson repeated the talk on the treaty, which she gave for the Womans Republican Club on the Hav-Pauncefo- te previous day. The P, E. O. will meet with Miss Palmer at 659 East Brigham street day. . . H The College Club met Thursday evon. ing at Hammond Hall, with Miss Atchison and Miss Peake. . II The jtourist. section of the Ladies Literary Club met Monday morning at 10 oclock. The topics, Stuttgart and. Hans Holbien, were presented by Mrs. Cheesman and Mrs. Fenton. H II , . ? Apart from the 50 cents a month, with which the customer' has nothing more to do after he has paid it, he is to repay exactly as many dollars as he received, namely, $1,000 on' each contract. It will take, at the least estimate, sixteen years and eight months for this repayment, and that shortest, period comes only if the subscriber is able to borrow the day he enters. In all: this time their payments to the company, above the $1,000 which they borrow and 'pay back, would amount to only about $70 or $75. On this little sum for expenses, reserve and profits the company, proposes to do business. This is, the first, attractive feature in its appeal to 'small investors, the other being the insurance and no forfeiture clauses. ... . The prospectus promises all these things, but the contract itself, if the would-b- e investor reads it, will be found a source of many surprises. In the first place, it appears that the $1,000 loan, on the contract is to be paid in monthly installments of $50, instead of in .a lump sum. In the next place', the company has the option of loaning the money either on a deed of trust, mortgage or contract, as it sees fit. The method that is actually to be followed under this, is the use of the trust deed. The customer must transfer the title of his property to an agent of the company, which will be a bank,, if possible, and he will not get . title back till his last cent is paid over. ' There is an express provision in the contract for forfeitures in ' the .period before borrowing in case dues remain unpaid for thirty dayB,. and there is no provision at all forthe return of any of the money .paid in, :in. case of .withdrawal, as is promised in the prospectus. 'Moreover,, in case of forfeitures the company retains the right to reissue the 'contract With its old number. , ". the .In the period .after borrowing, of contract makes the period immunity, from forfeiture in case of extend onlyaslong as the time the subscriber' has been making payments before. In both this; case, and in case of sickness, although, a suspension of the obligation to pay is allowed, the subscriber is required to make double payments when he is again able, until the deficit is made good." In the case of permanent disability the contract makes the following remarkable statement of the subscribers privilege in .words so grouped that they seem to lay upon him a duty rather than grant him a relief: 'Should his disability be total, permanent and determined by satisfactory evidence, the unpaid balance of $1,000 provided for in tills contract shall be paid to clear the home of the party, of the second part, and his indebtedness to the parties of the first part shall be discharged, and the title to his property, if held by parties of the first part, shall be conveyed as he may direct. This does not state by whom thq indebtedness shall be paid, and it specifically states that only when the company holds the title to the property shall it be transferred to the subscriber, a situation which is not to be anticipated. This last peculiarity is seen also in the clause concerning the action of the company in case the subscriber dies. It reads: 'The parties of the first part shall pay the balance, if any, of the $1,000 contracted for, and shall cancel his indebtedness to the first parties, and if the title to the property, purchased is in the first' parties,. they snail convey the same to his wife, if any; if there shall be no wife, then to his heirs. A lawyer who hastily looked over this contract said yesterday: Think of insuring a man at the rate of $1.20 a his death' or year per $1,000 against HoW insurance permanent disability. the would at idea, yet. companies laugh aminations and no requirements of age except that the man must be under 50 years when he applies. . Think of requiring a subscriber to surrender his title to his property to a trustee who represents ' a "company without any capital whatever. Think of starting a big concern like this with no provision against losses on bad loans, especially where money is loaned to the lull value of the property. I dont see how any man who reads this contract should want anybody elses opinion about it. Truth would strongly advise the investor to thoroughly investigate these companies before doing business, with them. Make inquiry as to how. many subscribers are ahead of you. As long as new members keep coming there may be money to buy homes for the early applicants, but it seems to Truth to be a case of the devil take the of Wu. G, A. R. MEN PREFERRED. Editor Truth Will you please pub- lish the following order issued by President Roosevelt: White House, January 17, 1902. The attention of the departments is hereby called to the provisions of the laws giving preference to veterans in appointment and retention. The president desires that, where-evthe needs of the service will justify add the law will permit, preference shall be given in appointment and retention to honorably discharged veterans of the Civil war, wh6 are fit and well qualified to perform the duties of the places which they seek ard are The Current Events and Current Literature sections met yesterday afternoon at 2 oclock. Mrs- - Merrill gave a paper on Kate Greenaway, and Mrs. Gorham reviewed the works of Marv F Wilkins. H It . er filling. Theodore Roosevelt. It is understood that the law is positive and that the president is determined to enforce it. That its provisions have been notoriously violated in Utah' is well known, especially in the. post office of this city. It is also believed that other departments have, ignored the law, but not to so great an extent, probably- because they were not so liberally supplied with brothers-in-lasons, aunts, uncles, nieces, nephews, etc.; etc., as is our patriotic post master. Heretofore those in Utah interested in this matter have had no one at Washington in sympatny with the law, but now Senator Kearns, a friend of the veterans, is there, and, I am sure, will take up any violation with President - - w, The meeting of the directors of the Ladies Literary Club will be held this morning; A number of matters of much importance are to come before the meet-The Ladies Unity Circle met Wednesday afternoon at the residence of Mrs. Charles Watson, 131 South Second East street. The ladies are doinr commendable work in sewing forth! needy just at present. H H The Reviewers held a most enjoyable meeting, on Monday, with Mrs. Hal Brown as their hostess. Mrs. Wight-ma- n gave a most excellent paper on . New Zealand. H H The Council of Jewish Women hold their next regular meeting on the afternoon of February 12th. PURELY PERSONAL . - Roosevelt'. . ; H. Respectfully, Salt Lake City, February 4, 1902. Manager Slade of the clothing house: of tieo. Mullett & Co., has gone east to purchase spring goods. ' Edward Gilman has returned from; the Klondike. t Mrs. James E. Clinton Jr., lias re' turned to her home in Boise City. Superintendent of Schools Allison of Ogden, was a Salt Lake visitor Mon- day. 'Lieut; Col. C. . II. Noble, formerly Monday afternoon the Woman's Re- stationed at Fort Douglas with the 16th has sailed on the. transport publican Club was entertained by Mrs. infantry, San Francisco,. for the PhilipThomas, W. W. Rivers. Mrs. A. J.. Johnson pines. gave a paper on the J. C. Laux is sick with heart trouble treaty, followed by a general discussion at his home on Q street. in which all the members participated. T. ti. Rush has gone to Nevada on a Arrangements were completed for cele- business trip. brating Lincolns birthday, February M. 12. A pleasant social hour was has gone to Chicago passed to be Fitzpatrick and delicious refreshments were served. away about a month. John J. McAfee of Lehi, was in the On Thursday a party of well kno city Tuesday. Utah women left to attend the convi J. Lewis of the Walker Dry Goods tions of the National Womans Rel company has gone east on a purchasing trip, i Society and General Council of Worn in Washington, and during their s Judge Marioneaux and Court Reporter Cook were in Salt Lake Tuesday on sence will visit Chicago, New York a legal business. other eastern points. The Relief i ciety of this state will be represenl Julius Gauer, who recently returned by Mrs. E. B. Wells, Mrs. Annie from a sojourn of years in Manila, Hyde, Mrs. Sarah J. Cannon; Mrs. was on Wednesday night admitted to S. Beatie, of Salt Lake, and Mrs. life membership in the order of Elks, Dusenberry of Provo. As delega from the M. I. A. will go Mrs. M. lodge 85 of this city.. Mr. Gauer was Dougall, Mrs. C. S. Burton, Miss A one of the original members of No. 85. M. Cannon and Miss Addie Cannon, It is quite an honor to be admitted to this city, and Mrs. Teenie Smoot Ti life membership and shows the esteem lor. of Provo, with Mrs. of S in which Mr. Gauer is held by his Lapish Lake, and Mrs. Steel of American Foi brothers in the order. WOMAN'S CLUBS.' , Hay-Pauncefo- te , 1 i |