Show Withdrawals on Building and Loan Draw Penalties One Investor in Salt Lake Association Pays in in 25 Months Months' and Receives in in Return for His Savings Editors Editor's Note This is the fourth of of articles a series on building and toa loan activities in Utah articles These are not presented for the purpose of embarrassing this discrediting or line of investment Rather The hopes through Telegram a recital of s sOme me recent history in this field to encourage investors to distinguIsh bad when purchasing stock between the good and the in A. A number of these institutions building and loan associations are sourd and benefits to s o stockholders without offer material lurid turid promises of large interest inter inter- est returns Some on the other hand have used the reputations of the better class COncerns for fo selfish ends The pub lic should know one from the other The Telegram hopes to awaken these articles prospective investors to the evil possibilities awaiting careless purchasers of stock dock building and loan It b s not a difficult task to find examples of the in manner which investors have been duped into buying building and loan stock by high pressure salesmen of these recen recently ly lyo o organized com companies anies and penalized d to the fullest extent of Utah's lenient laws when became It to withdraw necessary Many long months of regular monthly payments ave been made at a great financial loss to the investor that could not if Utah's laws governing building and loan ass associations we were e Similar to o those of California or had these newly organized associations conducted conducted con con- ducted business on anywhere near the basis of the old Examples Ex Ex- amples of these cases should Utah aroUse voters to force the matter to an issue for if these companies have charged holders of contracts to the fulle fullest t extent of the law is there any reason to say they hey will not continue to do so even though they declare the practice has been abated to some extent 1 By William A specific but not Isolated case cas recently came to the attentIon or of orthIs thIs paper through with one of its subscrIbers lIvIng In McGill Nev a mIning town where the Nevada Consolidated MIning company's mIlls and smelters are arelo Ia A feature Money Ioney at Work Work was carrIed on the editorIal page or of The Telegram dally daily One ot of these happened to be beon on the Ing and loan One paragraph par par- read Is either or of a part or orall orall all of the princIpal can be be made in most cases together with ds- ds distributed dis- dis profits The Te in this p sl n e JN with I h muc much doubt He had been an Instalment In- In payer payer io i o of nf S salt ft Lakes Lake's building and c i i ns H Here re Is his letter I made twenty five consecutive monthly payments or of 25 each with the Building and Loan or Salt Lake City I paid them They charged me to withdraw my account They told me that I could wIthdraw after twentY four four monthly month month- I ly payments with 6 per cent interest Inter Inter- est less cost The cost Is 1 a dead loss as r I cannot carry It any further The clippIng was taken taleen from th Salt Salt- Lake Tele- Tele gram As can be gleaned from explanations explanations made in these articles before belore thIs Is a typIcal example of how a workIngman can lose hIs savings In buildIng and loan stock Tie The lIt lIt- of nf this comp company ny attempts to make the prospective Investor behove believe be- be hove lieve he Is goIng Into one otle of the e safest sal sal- est and oldest of buildIng and loan assocIations with all the splendid privileges that an old mutual company corn com pany of high standard offers Salesman Urged Wage Earner In this instance an agent or of a company on whose literature ap- ap pears as directors and officers some someo o at the leading bankers busIness and publIc men or of Salt Lake talked a wage earner into sIgning to p pay y 25 a month for months perhaps knowing that It would be one of the mIracles or of modern times If he went through with the contract Yet the state laws ol of Utah allo allow a withdrawal fee or 5 per cent or of the orIginal contract plus other overhead charges of whIch Includes the 50 per cent of accredit accredit- Continued on page 6 WITHDRAWALS ON BUILDING AND LOAN DRAW PENALTIES Continued from peg I. I ed interest that may ee De deducted under the lw kw The literature of and loan Joan association presented to 10 th McGill citizen And broadcast throughout Utah litah Idaho Wyoming evada and has has as U. U of rs anti and directors some of the leading business men of the city j heads ot of prosperous rous firms firm And Iced Iced- Ing figures fleur In the promInent clubs and the chamber hamber of commerce It numbers number among its Ita directors one of the leading attorneys and lists Ut on onIta Its Ita advisory board a president of one of the largest concern con con- cern In the country country coun- coun try a prominent bank president one on of the city official and anda a hip high churchman hurchman doctor and nd other busine bunNe men whose standing In the community is I. high Yet here Is I. the letter Jetter this received from this and loan Joan association when he turned In his hi passbook after paying 2 a month for twenty the men months This will wil acknowledge receipt of and certificate No dul duly all l ned to the association and In accordance with your rC request lu t w wace we wele ace le Inclosing with herewith our check In the amount ot of which Is the aI value based on twenty twenty- five t having been receIved Yo are also certificate of for the balance remaining VI with h the association which If redeemed re- re deemed within will one year ear allow You ou the of oC reinstating your our Original contract wll 1 thIs balance to begin with 1 u. u I o UI course De LIV of much cheer to an investor who he was to Jet get 61 plus interest In- In terest compounded every ery six months at C p per r c cent nl It should make him f eel ol kindly toward many of Salt Lakes Lake's lending whose nam names appear on the literature that so 0 benevolently helped d hIm save 65 but took away of bf It it not to mention the Interest It should have earned tl In twentY five months Further communicatIons were ere car car- ned on with this McGill by The Telegram wIthY with a. a aview vIew It If pos pos- elble elbie ot of u assisting him In getting back hIs losses Withdrawal Part Was Withheld 5 r The following Is part of o one e ot of his re replier lIes indicating that ho was to bu buy tock stock In thIs buIlding buIld buIld- Ing and loan association with the big withdrawal kick withheld from his knowledge The is 18 the kind of an outfit that keeps keeps' one Itt In the dark r I did n not t sIgn anything that cauce a me to that I would be assessed anything except i part ot of the 6 per cent Interest and andI I have not seen anything at an any other time Issued by the Building and Loan The certificate ot of membership had no table o of any penalties on It for withdrawIng I believed that I could withdraw after twenty four months with 6 per cent Interest less a small cost if C I 1 kept the payments up for months I would receive 8 per cent Interest compounded semi annually The contract that I was not nol l ie lt with n e. me but there thero was not an anY table of of penalties for tor withdrawals on It The receipt Is' Is GUl- GUl log In- but a receipted bill as It Is aDS no- A few da days I withdrew front from this outfit L I. told their collector that I intended to withdraw He did not flOt ten UI me St at that time Ume what I 1 would get but a aman man luan by the name ot of an aJ agent nt or official of on en me I told him that I to withdraw and that I 1 exp te teto to get out what I 1 had paid In with 6 per cent interest I 1 asked him U It hat was wa rIght Ills HI answer was vas wash Ah h ah ab yes e right Excuse me I must be lie He went over the fence j not JO go out of the garden gate ate end and the way he went I knew mere was some something thin wrong wron- lie He wrote to 10 the that I fully understood that I could not withdraw all that I paid In I w the l letter lie He ts a lIar There was no witness as a. they are v very r careful that there are areno areno no chances to set get back at them When this citizen received only Instead or of 66 plus pius two ears interest compounded at atI I 6 per cent as a. he thoroughly believed believed be- be he would receIve pius pius' one ot of those tho handsome gl gi t certifIcates ot of cre credits he Immediately protested to the Salt Lake offices lie He got the following replY We have your letter lette ot of ber 4 24 with reference to the certificate of credIt forwarded to cover the balance with the association Uon tion after havn haVIng forwarded our ch cheek k for the withdrawal value In cash It simply represents the balance balance bal bal- ance remaining with the association association tion which may be reinstated within with with- In one years ears time without fines or forfeitures S Contract Not For Two Years You did not subscribe for a two two- year ar contract but for a co contract tract must have a period of months and the lie entire operation ot of the association Is based upon this latt latter r time therefore as time Is the essence of this account and as all money paid In to the association lion tion Is loaned out lor br periods of usually ten years with ver very small monthly return payments the withdrawal durIng the early stases stages of the contract must be pro pro- small and In accordance accordance accord accord- ance with the figures outlined by by us One pIece of literature presented to this McGill 1 citizen that induced hIm hini to pay 25 a month for Cor twenty twenty- five months has many Interesting statements IS IS A BUILDING G A AND S D LOAN ASSOCIATION It asks In one head and answers building and loan Joan association is the operation co-operation ot of a number ot of persons combinIng to accomplish that which the Individual cannot accomplish alone I 18 rUE rilE IE T SAFE another head asks and then the the answer Is This is a matter of oC vital Importance importance Import Import- ance to you ou and one of oC our ouE many strong p poInts For every loan Joan made madea a first mortgage on Improved real estate Js is taken which security be worth at twIce the amount ot of the loan loar We Ve have the confIdence and patronage of some of oC the best beit business men and capitalists capitalists cap cap- among them banks and bank officials should feel safe In in pi placing cl th theIr SAVINGS SAVINGS' In- In Inthe the same earn as s the dollars ot of such men are placed We l are operating under under un- un der the state laws ot of o ur ir stat state which are made for your protection and whIch are desIgned to make all classes ot of financial l' l institutions safe Government statistics wIH show that Investments In n building and loan associations associations' under state control are the safest on earth the reason renson that 99 per cent ot of the loans taken under thIs pan are lre paid S S Make Capital S of Weakness Here Here- again Is made reference to savings and as has been shown previous previously Utah's laws pert to building anti and loan assocIations are extremely weak and undesirable ble especially when considered In connection wIth such laws as the state ot of California possesses Yet let this literature is attempting to make capital ot of the very weakness In the state laws that permit this to operate and exist I 1 IF SOMETHING SO HAPPE S THAT I CANNOT MEET MY PAYMENTS PAYl DO I LOSE THA THAT I HAVE PAID IN Is another question answered In the following manner No 00 You can suspend your our payments payments pay pay- ments from one to six months without without with with- out fines or forfeitures by nOtifying the home office In writing and resume resume re- re sume at any time without making up back payments It j so desired SU POSE I SHOULD DIE Is asked and the Hie answer It If not mth a serious matter would be worth a good laugh In any society In the event ot of your our death the contract provides that your account will be closed up and paid to your our estate providing the heIrs do not wish to carry It In other words It if your heIrs are not financIally able to continue carrying the contract or or do not care to do and so In the case of the average wage earner the heirs need all the money then left the hairs would set get been paM paid In MINUS II US THE ENOn ENORMOUS IOUS WITHDRAWAL W AL FEES AND OD I CHARGES S Why patronize the varIous Get Rich Quick schemes designed to Impose upon the Innocent and eventually fleece them when we otter offer you as nearly perfect security as may be had Place your our money beside that ot of the best busIness busInessmen men and capitalists We e offer you ou the opportunity Let us loan your our mone money to build up your cOl and stand between you ou and all LOSS This is a home Institution and your money will wUl be Invested Jit In Insecurities securities whIch you know are safe saCe Instead of being sent to some other locality beauty where you ou know nothing of oC the value of the securities George Graham Rice could not have done better Such a written statement as this on literature ot of a company that received twenty five monthly payments of 25 5 a month from the McGill Investor and gave hIm bm back only of oC It It yet et puts out such fluch bunk cannot claim the highest of DC motives In red type ap appears ears such snappy sayings on this cIrcular as If ever eel worker could be Indu induced In- In du d to save what he now wastes there would be e small need ot of old age pensIons In preparing for tor that memOrable memorable able rainy day dont don't Walt wait until It begins to shower Ot Of course It may shower just at atthe atthe the time you have made payments amounting to 6 and this t i association which claims I to tobe be bOO a saving InstitutIOn above re- re will give you back and nd a pretty engraved telling you ou that If you recuperate enough wIthin the year ear you ou can cango cango go on making monthly payments but Itil It'll be tough It you ou happen to bump Into another rainy da day No New L Laws ws Were Passed And It Is i. vell to remind those sho ho ha have hae e h hd had d the same SAnte experience as the McGill citizen dId that th the thelast last state legislature refused to pass the laws proposed by the state bank commissioner and the good mutual and loan associations as as- but put on the statute books laws that protected and made It possible for tor high pressure building And loan associations to thrive on the misfortunes ant anti ignorance of the wage earner The reason is IR InsIders of clear Officers and fast workIng building and loan associations as- as are leading politicians and lobbyistS The company with which the McGill Mc- Mc Ic- Ic Gill had such a sad ex cx- has published and dIstributed dIs- dIs little booklets These are gems anti and are Issued eer every once In a while probably when the going for the Is slow Continually the matter of sa saving saIng Ing Is referred to and dec that the association builds nothing but savings accounts ac- ac counts They are mIsleading as much so as the high pressure publicity publicity pub pub- ot of wildcat oil or mining promotions Volume I 1 No 7 1 of this tion says sas Are you getting on Are y ou one ot of the fIve millIon million mil mil- lion Have Havo you systematized your our re- re the Do you know anything ot of eight thousand Institutions scat scat- all over these United States whose financial resources exceed two billion three hundred million dollars 1 Ha Have ve you ou ever been told how the five million AmericAn men and women have accumulated tI this vast sum of money through h cooperative cooperative opera co-opera- tive organizations which work so conservative and quIet that they attract the attention or those who are not |