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.