Show F Foreigners Duped by Building and Loan I High Power High oJ Power Agent Mexican Consul Cites Case in Which Hi His Countryman Was Draw Dra Sayings Say Say- ings From Bank All of It Being Absorbed in n Charges I 1 By Dy WILLIAM C. C M. M iola consul for the re repUblIc republic republic re- re public of l Mexico at at Salt Lake volunteers volunteers volunteers volun volun- the tho Information that at least fifty of his his' countrymen have lost heavily from Crom purchasing Instalment stock In stock selling building and loan companies that have Inside stock for themselves and Investment l tock for the public He says the loss to his countrymen In these or organizations or- or here is at least He says that many others are still still paying in on their contracts and that the above loss has all been sustained sustained sus sus- tamed by those who have been forced to withdraw and consequently consequently conse conse- have suffered from the high withdrawal charges that the laws of Utah permit Consul GaxIola hs endeavored to prevent pre the heavy loss sustained by his countrymen but so far he says his hi's efforts have have been unavailing He has taken the matter up with the state bank commissioner and has cases pending In court In every I case where these Mexicans have suffered Josses the Mexican consul declares h he has affidavits from witnesses who sa say they were present present present pres pres- ent when the agent of the building and loan loah association in question bad had told th the In Investor at the time th tl e contract was signed that he could withdraw v the amounts paid in at any time Notwithstanding this he heh h has s been unable to make these building and loan associations associations' stop takIng takIng- advantage of Utah Utah's weak laws on on the matter and heavy losses Josses have b been en the result I I TYPICAL EXAMPLE A typiCal example is given by Consul Gaxiola One of his hs Countrymen Coun coun- oun- oun I Vasquez ez was in in- in into signing a contract Inthe In Inthe Inthe the Savings and Loan association association asso asso- elation o of ot Salt L Lake the Lake the ke-the the same one that took tool h half I of the money paid on instalment stock by an elderly Idaho Idah widow vand and her daughter when they withdrew This Mexican who cannot read the English language speaks it very and understands it Lt t very little was as d duped pe Into taking out of a a savings bank bank- bankIn In Wyoming and signing a contract to pay 28 a a month for something like months at which time h he would receive 10 OO In his passbook passbook pass pass- book the had been divided up Into monthly payments so that his contract was was- merely dated back thus using up the entire for forthe forthe forthe I the agents agent's initial commission and other overhead charges that these building and loan associations assess assess as assess as- as sess against a stockholder before even even a cent Is credited to him on the books of the company The Mexican consul says he has affidavits affidavits affi affi- davits from froni witnesses who were present when the agent told this countryman of his that he could withdraw all ll ot of of his money at any time he desired without any loss This Tiis case is pending in a suit In the local courts SIMILAR CASES With this one of fifty similar cases brought to his attention Consul Consul Consul Con Con- sul Gaxiola wrote rote a rather scathing letter against the building and loan associations through which most moat of or his coun countrymen had been suffering large l losses A le letter ter that was re received re- re ed back written and sl signed ned b by bythe bythe the president of ot one o ot of these a associations asso so Indica indicates es tha the manner in which some of f these stock selling building and loan associations are capitalizing on the high r reputation of or f the he original principles ot or mutual building and loan associations Following it IS the l letter from the Building and Loan association association tion Salt Lake Ike Utah Lake City Utah January 15 1926 Hon lion C. C M. M 1 G ziola The The Consul for the Republic of Mexico Salt Lake City City Utah My l Dear Sir I I have hav hay hade the matter of your YOUl letter to a a. member of our association brought to to tomY my att at at attention t nUon and I ain am deeply ined to l learn arn of your attitude re respecting respecting re- re the building and loan Joan business This Is a business which has helped to build many many of ot the homes of America and has of changing the tho been the means entire trend of peoples people's s 's lives aves from poverty to toc comfort I will grant giant you ou the Institution Js Is s not one ope native to your country cp but butI I I feel certain If you ou wo would ld give gle the matter s a n. n little further consIderation consideration con con- you ou would along with the hundreds d of or thousands of other int intelligent beings come cometo cometo cometo to the same conclusion to wit Building and loan plan o of savIngs savings sav say ings lags and thrift Is a fine tine thin thing and Is Just jU as good for the Mexican Mex Mex- lean ican as s it is for the American l because after atter all wealth comfort com corn Cor fort and happiness are not reckoned b by nationalities A Mexican an who has matured his bis building and loan toan certificate certificate certificate cate can be just as R happy as the millions of ot Americans American who have ha e P E every en day y aiming toward that SAme end I 1 want to ass assure rc you that our contracts are wholly just j and equitable and that the contract carried by my little kids Is identically the same as the contract written writ writ- ten for your ur countrymen and ind for fOt whom you have exp Continued on 01 page 2 FOREIGNERS EASY BUILDING AND LOAN MARKS Continued from from pa page n so much sorrow that they have been caught in the entanglements entanglements entanglements entangle entangle- ments of something apparently very bad I know Mr Gaxiola that you ou are a man of ot high Intelligence and understanding or you OU would not be with the ro re- re which goes with the consul accredited from your our republic re republic reo re- public to our rep republic I I therefore ask you ou to give sl careful prolonged thought to this letter and let us sit do down together sometime and study building and loan so that you may not unwittingly direct your Y Countrymen from the tho path which might lead lend to to happiness s sand and comfort toward the path which Is trod by so many wasteful spirited and failure to accumulate GUESSED CORRECTLY The above letter was written ritten by bythe bythe bythe the president of the Building and Loan association He lie guessed correctly when he assumed Mr Gaxiola to be bea a manot man of high intelligence Intelligence Intelligence Intelli Intelli- gence and understanding lie He Is a n splendid example of ot the tho splendid type of ot educated citizen of Mexico and he Is astounded that the laws of or Utah will legalize the methods used by some of oC our building and loan associations In taking away about from tram his countrymen that they thy thought was vas as secure secue and safe as savings accounts in banks The president of this Il association in his eloquent appeal to to Consul Gaxiola f forgot to mention the fact tact that Utah's laws governing building and loan associations are so amazingly weak that they permit of this gouging FACTS OVERLOOKED He did not mention either that a n secretary of oC the national association association association tion of building and loan associations associations associations in an address before betre the Salt bait Lake Laka salesmen of ot building and loan associations and their officers made a statement that statistics showed only 16 15 per cent of the persons persons persons per per- sons signing term long-term contracts for fol monthly payments In the building and loan associations of this country country country coun coun- try ever went through with them to maturity lIe He failed to state that prominent business bushless men lawyers and doctors dentists and others have been induced been to buy common stock In building and ancl loan associations tiona because It was shown to them that so few tew ever went through with the long tedious monthly payments to conclusion and that the high withdrawal charges permitted under under under un un- un- un der the laws of Utah meant enormous enormous enormous enor enor- profits for tor agents and the insiders Insiders insiders in siders In a letter dated August 12 1925 the Mexican Consul Carlos V. V ArIza then in charge of ot the Mexican Mexican Mexican can consulate at Salt Lake outlined numerous cases where Mexicans had been swindled by the building and loan associations of ot Salt Lake This letter will be printed in full tomorrow |