Cottonwood Chronicle Newspaper, November 24, 1922, Page 5

‘NOT ALL THAT GLITTERS IS GOLD SAYS MARTZEN Many Poor Inv.stments Are Made by Pcople Having Small Sums of Miniy As to investments on the cut- side, be it mining, oil, building and loan associations let me tell you a few words about the ex- perience we had in this town some ten years ago it seems every few years the country is worked by agents of that class mining and oil promoters. An agent for the Pacific Build ing and Loan Association of Tacoma, Wash., got me to help organize a branch of the associa- tion here in Cottonwood, of course I was agent was a countryman and al- so a church member of niine, | fell so easy that I did not get the ordinary fifty-fifty split of com- missions. We had over twenty | members, some at $5.00 some at $10.00 per month. $5.00 per} month for eight years would! mature a $1000.00 contract, al good thing if people stayed with | it but if too many people make | their payments to maturity it| may not be so good as I will show later. | In our organization we had a| loan committee, a loan agent and | a collector. We made one $1000.00 loan as follows: The rate of interest six per cent;| monthly payments on this loan} of $18.50, besides the borrower | had to take » ten dollar a month | contract. Now this interest rate | was cheap enough as it looked to | all of us, but the joker is that | you have only the use of all the} money one half of the time, which naturally gives you a 12)| per cent rate besides a $50.00 commission, $15.00 attorney's fee to examine your abstract! Some rate. Now out of our twenty mem-| bers two stayed with their con- tracts, two that joined later. None of the local officers stayed with the ship, I was one of them paid a year and stopped and got | nothing only the initial pay-| ments, some stayed three years | and were able to draw out all they paid in but no interest, and | so on. | If you will allow your local banks or if the government would allow them to do that kind | of business they also could mature that kind of a contract at $1000.00 and make a good thing by it. Now if every one would stay with their contracts to maturity, | let us see your chances; nine out of every ten would go broke or default some way or the other, in fact pubiic accountants claim that although the state Jaws are strict and the securities of a building and loan association have to be put up with the states as security for the depos- itors and the state auditor aud- its their hooks ever so often, there can not be a correct audit made unless, the auditor go from one town to the other from one state to the other, make a per- sonal appraisement of the loans, the state holds as security for depositors. : The building and loan associa- tions make a good many poor loans as their financial state- ments will show on delinquent contracts may be worded a little different, but here is the biggest loss. In order for a building and loan associstion to prosper or to graft they need favo rable legis- | lation, at least a st favorable to them and here is where they get in politics as fol-! lows: In order to elect their men they have io make the politician | a ten or twenty to one loan that is if he has a house worth $10,000.00 they loan him as the campaign may require up to $100,000.00, when they get start ed they have to stay with him and the dear hungry investing | public pays the bill. Another gieat danger of such association. It is cooperative, every depositor has a vote, when the promoters run short of money they se!l more contracts until fin they loose the con- trol and as the case with the Pacific Building and Loan, the promoters get in a big row, they immediately start a campaign to get contro! by proxies trying to get the vote of the public that does not know who is good or bad who is able to graft the most and then finally they mail out proxies to amend the by-| laws or change the name of the association. Of course the dear public with his or her $5.00 per jcan people do love to be hum- buged.” asy picking as this | ate auditor | © | month contract has no time to’ |pocl, to investigate and their | becutiful $1000.00 contract is punched full of holes. j | One thing more if you have a jfew dollars left each month after paying your bills deposit }same in your loeal banks and if |one of you should need a dollar the next month you have a fair chance of borrowing the same and you do not have to pay 15 per cent interest. It is as the great immortal Barnum has said? “The Ameri- r. TWO DAYS FREE Motor School FREE THE BEST OPPORTUNITY EVER OFFERED Owners and Operators of Tractors, Trucks, Automobiles There are still a few well known people amongst us that have no luilding contracts, no life insurance, no mill stock, no honds, no oil stock, no mining stock, no creamery stock, no Farmers Union stock, no Tri- State stock, no Townley stock, no Wheat Growers Association contracts, but they have plenty of money to loan at a low rate of interest but all you have to offer for security is stocks and bonds and contracts, and the few wise ones are obliged to give you the famous head shake upon request for a loan. FELIX MARTZEN. UP IN ARMS AGAINST ORCHARD’S PARDON Citizens of Caldwell, Former Home of Gov. Steunenberg Do Not Want Pardon Caldwell, the home city of hi former Governor Frank Steun- fata ne a enberg, who was killed on the "4 : ‘ ‘ i Let Our Engineers Tell You How to Avoid the Junk Pile night of December 5, 1905, by the explosion of a bomb which had been placed on his front gate, is up in arms over the re- ported consideration on the part of the state board of the applica- tion of Harry Orchard for a pardon. 3usiness men of that city, a majority of whom are members of the Kiwanis club, voted to close their places of business on November 27, and go to Boise en masse and protest to the board against liberating Orchard. In addition to Harry Orchards, murderer of Frank Steunenberg, one of Idaho’s governors, there are seven other murderers whose applications the state board of pardons will act upon when it meets November 27. The total list of prisoners whose applications will be acted upon at that time contains 42 names. The list was furnished to Roy L. Black, attorney general, and a member of the board, by W. L. Cuddy, warden of the penitenti- ary. ve ee Five of the eight murderers i ait ; have life sentences and Orchard $200,000 In Bad Money is Seized. | SRURRARNoAG rear nets who has been in longer than any Chicago.—Seecret service agents selz | U5 of them, was received at the ed over $200,000 in counterfeit Fed |S penitentiary March 1S, 1908. eral Reserve bank notes in a raid on} Ue From the protest that is going « printing and engraving fe up over the entire state in re- raid was said to be the greatest singl« | an gard to the pardon asked by raid in the history of th department | foe Orchard, a confessed murderer, 2 29 —————— — | eal it appears that should he be par- Washington Phone Rate Suspended. | -f] Many Different Automobiles, Trucks and Tractors Are Represented Through the Co-Operation of their Manufacturers FIRST MORNING Gas Engine Principles and Operation FIRST AFTERNOON Petroleum. Gasoline Tests SECOND MORNING Ignition SECOND AFTERNOON Carburetion and Tests Thursday and Friday, Dec. 7, 8 In our automobile show room. 9:30 a. m. to 12. 1:30 p, m. to 4:00 p. m. each day. There is Absolutely No Charge Come! Bring Your Neighbor Cottonwood Hardware &: Imp. Co. shop. Th doned, the pardoning board Olympia, Wash.—An order suspend: | 35] . + might just as well open the ing the new telephone tariffs of the Ue 4 gates of the state penitentiary to Pacific Telephone & Telegraph com | Go { one confined within its pany of Spokane, calling for increas: 1 fle \ domestic rates approximating 31 per Fi i fi ne action of the pardoning cent, will be filed by the state depart any \ board, in the Orchard case, is ment of public works. Sal H being watched with great inter- | on] { ‘ eee i eff est throughout the state. What TALES OF FOREIGN TOWNS = | Us) the verdict will be no one knows P : : p u ry as pen ara, Brazil, ls known as the “gale but if the people could have way to the Amuzon.” ie their say there is no doubt of the a uc outeome. Harry Orchard would Havana, Cuba, has a new hotel that te remain behind the prison bars. | will accommodate 1,000 guests. No Par for Or rd. — | an Fst pe Bigg City of ‘Mexico ‘has two da evan | OF fi ite Roardvah par leagues and ten first-class diamonds. fy dons has forestalled the pres-| Madrid, In point of geographical ele | entation of further protests , vation, ts the highest city in Europe. oh : = Bi A> i drug stores and more than 600 per- Steunenberg. At noon Wednes- fume shops and beauty parlors day, immediately after the re- eee turn of Secretary of State R. O.) Quito, capital of I Jones from a 10 days’ absence in city in the world ! the east, the members of the ne of the equato hoard at a special meeting held eee eePahis in the governor’s office voted = oh unanimously against Orchard’s Ghent, Belgium, stands on twenty- application. six islands which are connected with eeeeee nn each other by eighty bridges. The city Is noted as the birthplace of Charles EY. V. and John of Gaunt. It is ssso- ¥ clated with American history by being the scene of the treaty of December 24, 1814, which terminated the second | war between the United States and | England. Constant Heat—Day and Night Warm rooms ta.dress in—steady even heat all day—fire never out. COLE’S Original Air-Tight Wood Heater is made Air-Tight and is guaranteed to stay Air Tight Every joint is double seamed. 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