Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-01-26

was WORKED. travelling agents, good
ones, sold the farmers q monument
job. These men were probably not on
the inside DEAL When a satisfactory
deal was made. the purchaser signed
the contract and note heretofore print
ed IN this column. In this signed
order an innocent clause, was, that
the monument was to be delivered on
a certain date, or later date IF more
convenient" at the same time the pur-
chaser signed a note, all included with
the order. This kind Of a note Is called
contract note, of course not good I'M
til contract is completed, then II Job
is accepted the note is good and worth
its face, II the party signing it is finan-
cially responsible. Then Mr.. Boggs
went to the nearest bank to sell these
contract notes. The bankers were
asked by Mr.. Boggs to call up the
makers Of these notes to find out if
they were genuine, and in every case
in which bankers have told Of their
deals with Boggs, the makers Of the
nothes would acknowledge that the
amount was correct and they ex-
pected to pay the note when due.
Then the selling price was agreed
upon. Mr.. Boggs got the money
and talked Of needing 1t to en-
large his business. Early in the game
these jobs were put up satisfactorily
to all concerned the notes paid and
everything o. X. In one case the note
canie due before the job was COM
pleted and Mr.. Boggs threw off the
interest till date Of the completion and
acceptance Of the monument. But it
seems his solicitors in the field took
orders faster than he could manufac-
tire the jobs and deliver them. He
needed the money so he kept on sell :
ing these contract notes to the banks
ito enlarge his business and if it had
not been for that Minnesota bank get
ting so inquisitive he would have been
"enlarging his business today. The
wonder is he did not put more men in
the field and secure a million dollars
worth Of contract notes. for they
We're always signed by responsible
parties and the banks like TO buy such
paper. Of course the present legal
proceedings have stopped the EN-
largement'' of Mr.. Boggs' business. but
there is nothing legally to prevent the
monument business being continued by
the Waterloo Granite Company or any
body else for that matter. if the con-
tract is worded for delivery on some
date. "or a later date if more convent
ent'
T seems Contract notes" are bought
by many bankers. The writer hears OF
one case, in which a school book con-
tract with notes attached was bought
by a local bank. Another case in which
travelling doctor sold bank several
contract notes and thew were all paid.
Stock food dealers sell their product
for present and future delivery, take
contract notes, the banks buy them,
the farmers pay such notes and the
stock food men take up any unpaid
notes after an agreed upon date. Mr..
Boggs ONLY did what others are doing.
He varied his proceedings with one
bank probably for variety's sake. This
bark had discounted several thousand
dollars worth OF these contract notes.
When these notes were coming due Mr..
Boggs said TO the banker. he-Boggs-
could collect them easier and cheaper
than the bank. His men were in the
field and could call on the makers Of
the notes and collect the cash, do this
while working up new business. AS
a business proceeding the bank could
deliver to him say $4,000 worth OF
these contract notes, for which TO pro
tect the bank ne would give his per-
sonal note at per cent interest. Then
when he had collected the contract
notes he would come in and take up
his note OF $4,000. One can see at a
glance what a fine thing this was for
the bank They had bought the notes
at nice discount and now Boggs
you'd pay them per cent interest on
$4,000 till ne collected the notes A
perfectly legitimate deal. OF course the
little fact that Boggs so far has been
unable to pay the note is not peni-
Tertiary oTense. And the fact that
Boggs. got cash for the notes when he
sold them 10 the bank, say at 20 Per
cent discount. and got full value wiki
interest from the makers when he col
lac-ed the notes, only shows one WAY
; Of keeping books double entry.
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