The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-02-21
"THE ToWNLEY CHAIN
STORE PROJECT.

HThe latest development Of
Townley Is what MIR. Townley
calls The Consumers United
Stores company. II is q revival
IN North Dakota af the same
scheme that Or. Ball worked
with 90 much profit 70 himself
among the farmers of Kansas a
few years ago. There are a few
improvements from the promot-
ers' point Of view on the Ball
plan. II ia hardly necessary 60
say that all the notifications
that make the TownIsy scheme
different from the Ball project
are in the interest of the oraani-
zers and promoters. There are
no changes that throw any addi-
tional safeguards about the
money OF the interests Of the
subscribers the men who put up
the cash and are expected 10
furnish the business. Or. Ball
did make some slight pretense of
permitting his dupes 20 partiei-
pate in the naanauement, and the
promised profit Of the Ball
Manufacturing company. Town
ley bars the men who put up the
money from the management or
from any share in the profits Of
tho business.
"A branch OF the Consumers
Stores company Is organized by
securing contracts for the payment
Of 800 by each member to the COM
pany. The company agrees to use
$4,000 OF the funds subscribed in any
community for the establishment OF
q store, and for the period Of five
years (ten years. to sell members
merchandise at an advance OF 10 per
cent over wholesale cost and freight
1f more than $4,000 is subscribed i'm
any one community 1t does not go
into the store fund to build up a big
ger business and make more profits
for the members. The contract ex-
pressly provides that all surplus over
10000 or whatever other sum may
be specified in the contract shall be
used by the company. either in es-
itablighing a central buying agency
or to carry on educational and
propaganda work along lines deem
I'd by the board OF directors OF the
UNITED Stores company to be- In the
interest Of or beneficial to farmers,
and for the assistance OF farmers
organizations such as relate TO the
economic, educational or political
interests Of the farmers. or both
Before Investing 800 In a mem
bsrship IN a Townley store it would
be a mighty good thing for the
farmer 10 investigate the nature Of
the goods that he Is buying. The
member does not get stock or a stock
certificate and OF course, acquires no
voting interest in the concern nor
any voice in its policy or manage
ment There is no pretense that the
member is to share in the profits,
either from interest on his invest
ment or rebates on his purchases,
In the contract he valves all interest
In all the money that he subscribes
after the $4,000 for the community
store Is raised, for It is expressly
stipulated that any surplus above
$40, 600 shall be used by the board Of
directors for educational and
propaganda work
"It should be understood that
this board Of directors does not
refer to the men who are select
ed BY the suhaoribers TO manage
the local store but 20 the Town
ley board Of dummy directors
who have incorporated the Con-
sumers' United Stores company.
This corporation is capitalized
for $4,000, divided into one huns
a4drsd shares Of 500 each. Al the
last report III had already collect
Cd So60y 600 from the sale Of mem
harnhip carkificateas or nearly 100
times its authorized capital stock.
This would not be so bad ii all
this money should be used as
(Coufir1Ted an rara E1