The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-03-02
THE FARMERS UNION
SALIVA. tKANS.

l. '...... SALIVA, tkANS. s
Official Organ Farmers Educational
and Cooperativs Union.
The latest Development ;sof Townley
is what NJ. Townley CALLS 'The Con-
sumers. United Stores Company" u
is revival in North FJakota OF the
same scheme that DR. Ball WORKED
with so much profit to himself among
the farmers of KANSAS a few years
ago. There are; a few improvements,
from the promoters point of view, on
the Ball plan. 1t is hardly necessary.
to say that all the notifications that
make the Townley scheme different
from the Ball project are in the in
terest of the organizers and promot-
ers. There are no changes that throw
any additional safeguards about the
money or the interests Of the sub
scribers, the men who put up the cash
and are expected to furnish the bus
mess. DR.. Ball did make some slight
pretense of permitting his dupes to
participate in the management, and
the promised profit of the Ball Mann
featuring Company. T0Wnley bars tho
men who put up the money from :hc
management or from any share in the
profits Of the business. ~
A branch Of the Consumers Stores
Company is organized by securing cen
tracts for the payment Of 500 by each
member to the company. The rom
pany agrees to use $4,000 of the
funds subscribed in any community for
the establishment Of Il store and for
the period of five years to sell mems
bers merchandise at an advance of ten
per cent over wholesale cost and
freight If more than $4,000 is sub
scribed in any one community it does
not 20 into the store fund to build up
a bigger business and make more prof
it's for the members. The contract cA
pressly provides that all surplus over
$4,000 or whatever other sum may be
specified in the contract shall be used
by the company, either in ESTABLISHING,
a central buying agency or ito carry
on educational and propaganda work
along lines deemed by the Board OF
Directors Of the United Stores Com
pany to he in the interest Of or htn.
eficial to farmers, and for the assist
ance of farmers organizations such as
relate to the economic, educational or
political interests of the farmers, or
both"
Before investing $500 IN a member
ship in Il 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 in
terest in the concern nor any vOic, in
its policy or management. There is
no pretense that the member is to
share in the profits, either from inter-
est on his investment 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 sur
plus above $4,000 shall be, used by
the Board of Directors for educational
and propaganda work. It. should be
understood that this Board OF Direc
tors does not refer to the men who are
selected by the subscribers to manage
the local store, but to- the TOwnley
Board of dummy directors who have
Incorporated the Consumers United
Stores Company. This corporation is
capitalized for $4,000 divided into
one hundred shares of one. hundred
dollars II each AT the last re-
port 1t had already collected
$3.50. 600 from the sale Of membership
certificates, or nearly one hundred
times its authorized capital stock. This
would not be 50. bad IL all this money
should l,eaused as capital for the stores,
but in many instances only Il small.
portion is employed for that purpose.
In a recent court proceeding against
Townley in which his creditors were
trying to collect from him as bank
rupt, It was brought out that in one
community SIX hundred store members
had been Obtained &C $10U- eachr wnJ.M'