Show FEDERAl OFFICIALS TO PROBE CANADIAN FIRM National Mercantile Company Is Under Fire in in United States Courts Fraud Charge Made by I I I To investigate ate charges that ns ar are being fleeced by representatives of or the National Mercantile company limited of or Victoria B B. B 0 C. or by the tho company which succeeded It neither neith neith- er Cr of or which has an any right to operate in Utah the state United States and county officials o of tho the state havo have begun an investigation It is possible possible ble officials say that there will willbe willbo bo ho wholesale arrests and prosecutions on criminal charges of or alleged representatives ot of these companies the plan of oC the tho attorney general to institute or have havo instituted Injunction C tion proceedings have been dropped Information received at the tho attorney ne ney generals general's office is to the effect that many Utah county attorneys have havo received complaints regarding the operations of this company Letters Let to from the firms firm's representatives rep sent through the United States mails malls have been turned over overto overto overto to the United States Stales district attorney attorney ney He lie has given these letters and other information to the inspectors Fought for Charter Tho The history of or te National Mercantile Mer cantile com company's anys operations In Utah date from their attempt to force the tho secretary of state to grant them thema a license to operate here bore Both the district and state supreme courts r re fused CUBed to grant the lie demanded writ of mandate and since the decision of the latter court was made the company has defied tho ho authorities according to Attorney General Barnes by bv continuing operations The Tho present probe is based on these thes alle allegations That tho the National Mercantile compan company is Insolvent is now in the tho hands of a receiver and cannot therefore carry out any contracts oven even if tr it ha had a license to operate In Utah That the succeeding company the Canadian operative Co Bond corporation corpo ration limited has bas not been author Iz d by the Canadian authorities to transact business That the National Mercantile company operated by fraudulent methods even cven before belore it was Insolvent mealy ent this having been decided by a United States Slates district court Promises Made The Thc system of or op operation b before rore the present Insolvency was to to have in make a contract which In in- Included included I eluded promises of loans at 3 per percent cent In the case of the National Mercantile company against Keat lug ing state auditor of Montana No federal to test the constitution constitutionality of ot tho blue sky law the fed era eral I Judge held hellI that these contract constituted a fraud In tn that they could not carry out the promises s made A copy of ot this decision Isnow is Is' Is Isnow now In the hands of ot the attorney general In addition to this information U the e attorney general has a letter from the registrar of ot Joint stock companies compa nies of the tho province of ot British Co Co Ca- Columbia lumbia in which that official as' as as asserts asserts the firm Is 18 insolvent and says says' that the company that is 18 alleged to ta havo have taken over its business has hl hasna na le legal al rl right ht to operate |