The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-02-21

store for five years at wholesale
cost, plus freight charges. As
the average farmer will not buy,
as a rule, more than 5000 worth
of goods a year at any one store
the $40 annually that he pays for
that privilege amounts to per
cent on his purchases, which ad-
ded TO the 10 per cent profit that
he agrees to pay, gives the store
q profit OF 10 per cent on his
business.
1.-THE average profit on transactions
in any grocery store is not very
large and annual results depend on
the number of times that capital can
be turned. The grocer expects and
plans to turn his capital at least
twelve times al year. A farmers
store with several hundred members
will do much better than that.
"The Farmers Union store at
Beioit, Kansas. for example, turn
ed it's invested capital about
eighteen times during the year
1915. If a Townley store is we'll
patroniEed by several hundred
members il should turn it's
capital fifteen times a year, which
means that it's 10 per cent net
profit on individual transactions
would amount to $50 per cent on
the years business, from which
the only deduction to be made
would be overhead expense or the
cost of doing business, which
would really be taken care of
by the annual contribution of $40
by the members.
"At the end of Ave years (ten
years. the members participation
certificate, which gives him the right
to share only in payments to the
store and in purchases of merchan-
disc, expires and leaves behind 1t no
claim whatever on any Of the
property or business of the corpora
ton. Since this project was launch
ed last fall about 81 900, 600 has been
paid in by members. At the end of
i've years (ten years) the SIC, 900 COR
poration that has collected this mill
lion dollars has that money and
whatever profits may have been made
in the meantime free from all obliga-
lions to members who must come
across with another 500 each If they
wish to continue their privilege of
buying of Townley and his little
bunch of insiders at wholesale prices,
plus freight and 10 per cent.
"Durinu the past fifty years
many set1smes have been Matched
out and operated fer the purpose
of separating the farmer from his
coiny but for pure, unblushinp,
brazen, shameless effrontery this
leads them all. Within less than
six months the farmers Of North
Dakota have turned a million dol
lars over to the company capital
ICED for only $4,000 and con-
trolisd by a Townley appointed
board of directors Of three MEM
bers only, responsible not to the
men who furnish the money and
are expected to furnish the bust
ness, but TO Towniey for their
conduct OF the affairs of the COM
pany. Any $4,000 corporation
should be able TO do mighty we'll
for it's shareholders, and direc-
tors If il has the opportunity to
use a million dollars of other peo-
pies money without interest and
without any responsibilities as to
accounting, auditing and man
aaement.
"The contract given to members
Of the Townley store scheme does
not mention the directorate by name,
but from another source it is learned
that there are three directors:
O'Leary OF Fargo; Charles
II. Heck, Of Wilton, and H. L.
Elliot Of Minot. O'Leary is Town
ey's private secretary and is well
Known as a Socialist leader in North