The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1916-07-29
AGENTS REPORT
ON Loves PLAN
Possoffee inspectors said 10 Have
Advised Criminal Action Against
Lomax Town
Booster.
MIGHT BAR USE or MAI
Promoter 81 1.-THE New City" Do,
cIarss He Offered to ahow
Books-Love Former kso-
Isuss Citizen.

tanned two column story by staff
corresponding relative to the opera
lions OF William T. Love, who is pro
moung big project at Lomax, Ill.
The promotion ideas Of Mr.. Love have
heretofore found mention In the col
umns Of the Chicago papers. Mr..
Love was In earlier years resident
OF Keokuk. This mornings Chicago
Herald contained the following refer
ence to Mr.. Loves operations and
plans:
William Loves scheme for selling
shares of the Lomax Town company
through the mails and his proposition
OF giving investors q return Of 1924
or more for an investment Of SO has
come under the Official attention Of
the United States government.
The postoffice inspectors who in
vestfgatei Mr.. Loves proposition at
Lomax, H.. or, as he calls it, New
City, have reported to District Attor-
ney Clyne, but none will reveal just
what the official reports set forth. It
Is understood, however, that they ad-
vocate criminal action, and if, In the
opinion OF the federal attorney, that
cannot be taken that fraud order be
obtained Immediately from the post
AAAssNS
A fraud order would bar Mr.. Love
from further use OF the mails az long
as 1t Is allowed to remain In force.
Offers 70 show Books.
Mr.. Love, who is sole trustee and
manager OF the town company, told
reporter for the Herald that two
government inspectors recently had
paid him q visit and that he had Of
fered to throw open his books to them.
They did not avail themselves Of the
offer. 1t is said
The inspectors visited virtually e%
cry industry in Lomax. They ascer-
certained the number Of vacant stores
and dwellings and made memoranda
OF all the commercial interests which
had begun business IN Lomax and
later abandoned it, as we'll as those
which now are In existence
In connection with the Lomax Town
company Is the Lo1aax Investment
company, organized a year ago under
the laws Of the state Of Delaware,
with capital stock OF $1,000. 900. The
investment company Is under a con-
tract with the town company imme-
diately to loan all the money OBJ
tanned by the sale Of stock to the
town company.
u0 nov. -. D64V19 10 pISS1QSuL OIL
the Investment branch OF the two com.
panies; C. H. Kistner is secretary and
F. A Stricken is treasurer. They and
Dr. Homer Mead constitute the direc-
torate.
Has Many Arguments.
Mr.. Loves proposition, as stated IN
a controlled newspaper. pamphlets,
bulletins, dodgers, letters and other
matter that he sends broaccast over
the country through the mails, is to
sell shares in the town company at
$40 each. This $40, he maintains,
may be doubled until It has in
creased to $10,24O or more.
To those who are skeptical about
SO being made to earn $4,000 within
five or six years, he has many argu-
ments He declares he has had thfrt,
years experience in town building:
that he has the most wonderful site in
the world for manufacturing city.
and that the shares are almost certain
to be worth the amount he claims
within the time specified.
All his arguments are said to have
been set forth in the report made by
the two inspectors to Mr.. Clyne. Mr..
Clyne declined yesterday to say
whether grand jury action would fol-
low.