The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1918-11-05

ment sent back Doth principal and
interest, and in another month got
1t all back again with another 10
per cent. added. AT the same time
he said business was booming, and
he had some fine investments to take
care of and If they cared to put in
money again he could assure them
the same liberal profits. Also, ii
they had any friends who wanted to
get in on the profits, he would al
low one per cent, to the person who
got the friend or friends to loan
him money. These same people sent
him all their own money and all OF
their friends money they could get.
They all got what they had been
promised and he told them he had
made some fine Investments in stocks
and had made enormous profits and
he was glad to share it with those
whose money had enabled him to
swing the deals without being ham,
pered for funds. lie now made the
same offer again to all investors and
their friends without limit. People
went daffy and everybody was send
ing him their own money and laying
off from work to interest as many
others as they could so they could
get the one per cent commission.
The man in New York was hiring
accountants all the while, and when
curious people went to look him up
they found fine establishment full
OF accountants and money standing
around In barrels. When they ask
ed him how he made his big profits
he said the world was full OF good
investments for anyone who could
spot them early enough, and his
system of getting the information
was getting the results. The mania
for loaning money to him spread like
wildfire, and thousands of people
quit work and spent their time in
securing loans for him and forward
ing the money for the one per cent.
commission. AT the same time, they
re-invested it all with him and kept
him staked so he could keep on pay
ing. He really did not lose any
money by paying commissions
merely sent it out and received it
right back. All that he lost was the
cost OF the bookkeeping and his rent
and other operating expenses. He
did not even advertise now, for the
thousands and thousands of invest
ors attended to that by word of
mouth. Finally in explaining how
he made his money, he stated that
he had just made fine profit by
buying and selling stock in a trans
continental railroad and made nine
teen points. Stock quotations show
ed that the stock of no transconti-
entail line had varied >. more than
three points for months. That lie
about the nineteen points went ring
in down the line and people became
dubious and began to withhold their
money. hen grave doubt spread
among these loan people fast as the
epidemic to loan had spread, and
soon the New York man had emptied
his barrels paying interest, no more
funds came in fast enough to keep
up the deception, and the bubble
burst leaving him without money
enough to pay off the girls who were
posting the books.
The history Of Townley's United
Stores companies in North Dakota,
his proposed stores companies in
Idaho, and his plan of getting peo-
pie to buy newspapers for him in
Idaho, indicate that Townley must
have received an inspiration from
the New York money shark. Three
times, Townley's big schemes have
come to the verge of ruin, and three
times has he snatched up the failure
and started money to flowing again.