The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1917-09-20
PECULIAR
TRANSACTIONS
DOES TOWNLEY TRUST THE
FARMERS? LOOK UP
HIS RECORD.
WHY THE MORTGAGE BOND CO.?

FARMERS NOTES DISPOSED OF
TO INNOCENT PURCHASERS AND
DISTRIBUTED BY A FICTITIOUS
ORGANIZATION. F,
The notes obtained by the Townley
Organization in payment for member
ship therein are being hawked about
the State by the Real Estate Mort
gage Bond Company, which has an
authorized capital of One Million Dol
lars and has E. B. Kenefic as Presi-
dent and James Manahan as Vice
President. Why this paper should be
placed on the market at the present
time, fully a year before the proposed
political campaign is to begin, is not
very clear. Still, it is not improper to
hazard a guess. Possibly the Town
ley crowd doubts its ability to deliver
all the magnificent promises that they
have made; or, possibly they doubt
the honesty of the men whose paper
they hold?
From a practical standpoint it looks
like a "get rich quick" scheme. There
probably will be only one profit TAX
ing in the present movement, and the
leaders propose to take that profit
while the coast is clear. They may
we'll be dubbed profit Patriots" As
such they are in the same class as
the food gamblers and grain specula-
tors, only that the latter-if there is
any distinction-are the more manly
and the more honorable.
But to get down to hard facts, let
it be stated that when a subscriber
to the Townley organization does
not desire to pay his membership fee
in cash, a note payable after the crop
has been disposed Of is accepted in
lieu Of cash. These notes are being
discounted, but not in the customary
manner The matter is handled in an
ingenious manner and apparently for
the purpose of ~concealing something
The Real Estate Mortgage Bond Com
pany on March 2, 1917, sent out to
prospective investors the following
letter:
"We have for sale $105, 100000 worth
of first class well secured paper, in
denominations of 100000 each at z
per cent, maturity from December Is,
1917, to January Is, 1918, each $1,000
note secured By ten notes of $4,000
each, given by good North Dakota
farmers, and all are due from October
1 to December i, 1917. There are adj
ditional' securities of $1,250.0O worth
of post-dated Checks. dated to be
cashed from August / to December
1, the average amount of each check
being approximately $1,000. On each
one of these checks 1Oc in exchange
will be allowed in addition to the
actual cost of collection"
"To the parties who buy this paper
we desire them to use their best
mean in sending these checks ant
notes through the proper channel.
for collection as fast as they become
due, and apply the receipts therefore
to the one principal note Of 81, 90
The principal note is given by a Mil
lion Dollar Corporation of which $3.50,
100000 is paid, and they have no liza
bilities outside this issue of corpora
ton notes. From very standpoint thi
is an excellent investment, and will
stand investigation from top to bot
tom. If you are interested and woul'
like to have US submit an offering, lie
US know at once. (Signed) E. E.Dry
den, Gen. Mgr"
ut will be noted", says n of tn
leading newspapers of Minneapolis i
commenting on the offer of the Res
Estate Mortgage Bond Company "tha
this company has apparently purchas
ed from the League its membershi
notes and has put these note up a
security for its own ISSUE" In orde
that it might rot be hampered i
d~isposing of single notes for but 81
each, the League evidently in Mort
Dakota adopted the scheme of havin
ten farmers sign a combined not fl
$100.00 covering ten membership
This made it easier to peddle thes
instruments on the market.
eff the League kept these notes
self, however, the makers would ha,
an opportunity to set up a defense
they objected to paying. But by IL
trick Of transferring them to a thi1
party, namely the so-called Real E
tate Mortgage Bond Company, tn
defense opportunity is entirely elm
mated and any verbal promises al
understandings which may have e.
listed between the original maker al
the League are wiped out automat
cally. Of course the company is sir
ply On agent Of the League but in Ia