The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-06-20
PAPER GAME IS RICHEST
OF ALL TOWNLEY PLANS
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vi ALL IUWNLEY PLANS
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to 300 in number, and put their
$40, 500 into the company against
nothing invested by Mr.. Townley-
Mr.. Townley can cast 450 votes
and the men who invest their money
can cast but one vote each.
But that isn't all. Just to further
safeguard himself, as against any
possibility of trouble at the hand
OF any stakeholder, Mr.. Townley has
inserted a unique provision in the
corporation charter. as follows:
ITO guard against litigation
by entrenched wealth, the direc-
tors may buy the preferred
stock Of any stakeholder who
brings, or permits his name to
be used in, an action against it,
by rendering him the par value,
cumulative dividends, together
with a 10 per cent premium, and
such stoclzholder shall cease to =
have any further interest in the
corporation"
So, If some Individual stockholder
took occasion to make troublesome
or embarrassing inquiries as to what
or how the property in which he
has has money invested, is being
operated, Mr.. Townley need but to
vote his $50 shares of common
Stockton which he has not paid
any mcney-and the questioning
stakeholder is no longer a stock
holder
Assumes No Liability.
Mr.. Townley doesn't believe in
taking chances, either, as witness
another provision of the articles of
incorporation-keeping in mind, all
the time, that the common stock"
is the stock owned by Mr.. Townley,
and for which he has paid nothing.
Here is the iron clad protection that
Mr.. Town1ey throws about his own
resources:
THE common stock shall be
issued in payment for promotion
and organization work, and for
services rendered or to be rem
dered, and after the same has
been issued, it shall be exempt
from all liability Of corporate
debts and obligations, and there
shall be no individual liability
thereon as to the holders there
Of"
AS distinguished from the protec-
ton clause as relates to the pre-
ferred stock, that referring to the
common stock is much more com
prehensive and broader in it's appli-
cation. The preferred stock is made
exempt from all liability for cor
porate debts and obligations to
which Mr.. Townley adds, for his
own protection on his own $50
shares Of common stock, for which
he paid nothing, and there shall
be no individual liability thereon as
to the holders thereof"
And The Profits.
Mr.. Townley, too, has devised g.
right unique system Of distributing
profits.
Holders of the preferred stock,
each share worth $40, get a divid-
end of 70 cents a year on each
share of stock-that is, they get
seven per cent.
But Mr. Townley, with $500 worth
of stock, $50 shares at 50 each, for
the common stock Is listed as be-
ing worth only 81 a share-collects
70 cents profit on each share of
stock, after the preferred stock has
been taken care Of. or at the rate of
S5 per cent on the fixed value there
of. ~.
In other words, Mr.. Townley gives
the men who have paid their money
into the newspaper seven per cent
on their money.
Then he collects 85 per cent on the
nothing that he has invested, but
which has q book value of 5000.
For instance, if the company has
$4,000 worth OF stock issued, the
makes $500 to pay 10 per
cent to the holders of such pre-
ferred stock, which cost real money.
From that time, on Mr.. Townley
begins to share the profits on a IS
per cent basis for himself.
He has $50 shares-and each
share is entitled to 20 cents. That
gives Mr.. Townley 1915 a year on
each paper.
With 40 papers In operation, and
1t is a. mighty poor newspaper prop
81, $50 on the investment each wear.
Mr.. Townley Is In q fair way to
realize an annual income OF S12. 900
from the newspapers, which cost
him nothing. Mr. Townley has am
billions, not to operate 40 papers, but
TO operate at least 100 of such
farmers papers, in which event
be has established, for himself
the service bureau, an an
nual income OF approximately $780,
600.
The corporation agreements run
for 90 years.
Papers have already been or
gained under this particular style]
OF articles Of incorporation ait the
following places in North Dakota:
Bottineau. Bottineau county,
McHenry, Foster county.
Towner, Mcaenry county.
Forman, Sargent county.
Bowman, Bowman county,
Annidon, Slope county.
Watford or Schafer, Mckenzie
county.
Park River. Walsh county.
MayviIle. Trail county.
Mohall, Renvtlle county
Mandan, Morton county.
Steps are also being taken at the
present. tizns to organize similar