Assurance Given Investors.
The cover of the pamphlet bears the assurance:
"Are your interests protected? They are if made through the Mercantile Finance Company. Avoid risk of loss; make certain of gain."
On another page is a list of high-class railroad stocks to the amount of $100,000 which the company is declared to be the possessor of in addition to assets in stocks, mortgage loans, cash on hand and other collateral. Careful reading of the pamphlet, however, shows that these stocks are not a part of the exchange list.
An explanation of the system, which probably will be a part of the testimony submitted to the grand jury in conjunction with the tales of luckless investors, as printed, is:
"Its plan is to create profits for its customers by aiding in the intelligent development and working of legitimate mining enterprises. Through this system its customers become careful and conservative investors. Furthermore, they are given an opportunity to participate in the vast wealth created in these industries, having at the same time such assurance against loss as would not otherwise be possible. It is a rule of this company never to handle as a fiscal agent stock in any property until after a careful and thorough examination has been made. It rejects those properties which do not come up to the high standard required. This accomplishes for the customers what the individual investor by himself, unaided, cannot afford to do, for his own investment is usually too small to justify his having this done on his own account.