"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.
Purchases "Guaranteed."
"The Mercantile Finance Company positively guarantees to allow its customers the privilege of exchanging any stock purchased from it for stock of any other company which may be in the said guarantee fund. Such exchange may be made and repeated as often as desired during a period of five years following the date of the original purchase."
The tremendous activity of Inspector Ketcham, ably assisted by Wooldridge, has been at the bottom of the exposure of this whole abominable swindle. But this is by no means the first case in which these two men have joined hands and caused an upheaval in pseudo-financial circles.
These two men first began to work together in the famous Wild Cat Insurance raids. These raids furnish one of the most dramatic chapters in the financial history of the United States if not of the world. The Wild Cats had stolen millions of dollars. Their methods involved brutal filchings from the poor, heartless commercial brigandage and finally the running to earth and conviction of the ringleaders and promoters of the concerns. The work was all done by Wooldridge and Ketcham.
It would be improper to close the story of the great Rhodus frauds without some mention of Attorney Patrick H. O'Donnell, who, by his wise counsel and careful review of the matters submitted in evidence, materially assisted the two men who had most to do with the unearthing of the frauds.