Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-03-17
Plan a Business Deal by Which
They Could Control School
Book Supply
FABULOUS PROFITS PROMISED
Guarantee Thirty Per Cont Returns on
the Investment tho First Year -
Prominent Iowa Educators at the
Head of tho concern-circuIar Let
tor Gives Their Scheme Away.
Special to Times-R Republican,:

Special to Times Republican:
Cedar Rapids, March II. - secret
circular just issued and sent out from
this city to large number of county
and city school superintendent, soil
citing subscriptions for the stock OF
the National Book & Supply Company,
having capital stock of 100000. ex-
poses shrewd scheme by number
as corporation which the state law
makes q serious offense if done by
them as individuals. 1t would further
more constitute trust in which the
school superintendcnts could coin for
tunes out of trust in which they
would be both the sellers and pur-
chasers of all the school supplies OF
the state. Conspicuous In the organ
ization and as officers of the company
appear the names of Charles r. Lowe.
school superintendent for Benton
county, IlllS u. I1ouR, SuPNti.i.S""Si's
OF schools for Winneshiek county:
Joseph r.. Vane. superintendent oil
schools for Linn county; Philo H.
Hoadley, former manager for the Ma
tional Publishing Company; Anton u.
Hukill city superintendent OF schools
for the west side at Waterloo; and a
number of others equally prominent
In school circles. Perhaps the circular
would not have been sent out had not
the gentlemen named above found
themselves short of sufficient financial
backing to have carried the project
thru without aid. The circular letter
referred to, is as follows, and gives
an insight into the Intention of the
promoters
Cedar Rapids, March IA, 1906. Dear
Friend: We have decided to commence
business May l, We need little more
capital, and therefore offer the follow
ing to school people only
1000 shares common stock, at 81
per share.
800 shares of preferred stock at IS.
I'VE guarantee you cash dividend
Of 10 per cent a year on the face Value
of this stock and will buy 1T back OSLO
per share) at any time after December
L, 1907, IL you want to sell. Not more
than fifty shares will be sold to any
one on these terms.
"1'hink 1t over; note that our offer
is equivalent to about thirty per cent
q year on your investment. II you
have ny cash to invest or II your
credit j good with your friends or at
the bank you cannot afford to miss
this liberal offer. IL Interested, let us
hear from you at once. The offer Is
good only for thirty days.
1--WE prefer to place our stock with
school people because 1t would insure
us more OF their business. but after
thirty days we will place unsold stock
with business men and SPECTATORS,
who are anxious to get 1t ms they con-
slider our proposition good one--'a
sure thing'-as one of them expressed
himself.
Hopping for an early and favorable
reply we are yours for business,
"Chas. r. Lowe,
"Phil T.. Hoadley.
up. S.-We will send you a copy Of
our articles Of Incorporation and by
laws If you are interested In our offer.
The scheme, If successful, would put
a few county and city surerlntendents
Of schools In a position to control the
price and handling of school supplies
to $2,311,693 in the state an
nually. The county and city school
being financially inter-
ested by reason Of owning stock, would
very naturally make purchases of all
supplies and large quantity of books
from the National Book 81 Supply Co
That this is the thought of the pro-
meters is shown by the following ex-
cerpts from a four-page pamphlet,
which accompanies the circular letter:
Don't you know that the boards of
education ard people generally will
think more of you and hold you in
higher esteem If you show business
and accumulate property:
Try it! Begin now! Save all you can!
invest your earnings where they will
bring you & good profit Send your
business, while in school work, where
your investment is, and thus help to
Increase your yearly earnings, and div
dends Schools must be supplied re-
,ardless of poor crops or hard times
md the pay is ready-has been provid-
ID by the annual tax levy. You want
o make a good investment and we
want your business"
The meat of the proposition involv-
ng school officers engaging in the bus
ness of selling supplies to the schools
becomes apparent in the light of the
GLOWING legal inhibition contained in
e school laws and found in Section
1874 of the code:
Section 2S34--Officers Not to be
Agents.-1t shall be unlawful for any
chool director, teacher Or member of
he county board of education to act
IS agent for any school text books or
chool supplies during such term of
ffce or employment, and any school
irector, officer, teacher or member of
he county board of education who
hall act as agent or dealer in school
looks or school supplies, during the
ERIN of such office or employment,
hall be deemed guilty Of such misde-
neanor ana shall. upon conviction
hereof, be fined not less than ten dol
ars nor mere than one hundred dollars
nd pay the costs of prosecution"
That there may be no obscurity
bout the Interpretation of the above
foot note at the bottom of page 81 |
the school laws gives the following |