Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-02-21
FARMERS UNION
WARNSFARMERS
AGAINST E. U.S..
For Pure, Unblushing, Fraz.
EN- Effrontery This J.eacs
Them All.

The Farmers Union. the official or
gan of the Kansas branch of the
FARMERS Educational and Corpora
unien, devotes considerable space
III Its issue of February IA to the
Iownley store scheme. calling it a re-
vfval the DIR. Ball scheme, which was
worked with such success to the pro-
tnoter among the farmers of Kansas
a few years back. The Farmers Union
says In part:
|. 'ihe latest development of Townlcy
Is what Mr.. Town!ey calls THE Con-
sun,ers United stores company" 1t is
q. revival in North Dakota of the same
scheme that DIR. Bal! worked with SO
much profit to himself among the
arnler of Kansas n few years ago.
There are a few improvements, from
Ball plan. 1t is hardly necessary to
say. that all the notifications that
make the Townlcy scheme different
from the Ball project are in the inter-
est of the organizers and promoters.
There are no changes that throw any
additional safeguards about the
money or the interests of the sub
and are expected to furnish the bust
ness. DIR. Fall did make some slight
pretense of permitting his dupes to
participate In the management, and
the promised profit Of the Ball Manu-
featuring company. Townley bars the
men who put up the money from the
management or from any share in the
profits OF the business.
Before Investing 500 in q mem
berssip in a .ToWnley store it would be
a mighty good thing for the farmer to
investigate the nature Of the goods
That he is buying. The member does
not get stock or /: stock certificate
u OF course, acquires no voting in
terest in the concern nor any voice
in its policy Or mafts gement. There
Is no pretense that the member is to
share in the profits, either from in
tercSt on his investment or rebates on
his purchases. In the contract he
valves all interest in all the money
that he subscribes after the 500 900
for the community store is raised, for
it is expressly stipulated that any
surplus above $4,000 shall be used
by the board of directors for educa-,
should he understood that this rel
Of directors refer to tho Townley
board ct dummy directors who have
incorporated the Consumers, United
Stores company.
1T is evident. that the members of
the Consumers United Stores company
buys no property when he purchases
his membership certificate. He has no
claim on any profit thai may 81 made
from his business. lie gets no inter
est on his money. lie has no voice
i'm amusement Of the concern Gre
ated by his money and sustained by
his patronage. He has nothing to say
about the nature Of the educational
work and propaganda" That is to he
carried ON at his expense. The one
single consideration that he receives
lin nXrh2nrn for 1>t~ cam " A.
privilege OF buying at the store for
ten years at wholesale cost. plus
freight charges aud 10 per cent. AS
the average farmer will not buy, as a
rule, more than $500 worth of goods
d Sear at any ono store the $40 an
nnally that he pays for that privilege
amounts to per cent on his pur-
cnases, which added to the ten per
cent profit thai he agrees to nav, gives
the store a profit of Is per cent on his
business. The average profit on trans
actlons 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
WE'VE times a year. a farmers
store with several hundred members
will do much better than that. The
Farmers Union store at Reloit, Kan
sas. for example. turned it's invested
ca Aital about eighteen times during
the year 1915. If a Townley store is
we'll patronized by several hundred
members it should turn it's capital
fifteen times a year.. which means that
its ten per cent net profit on %individu-
per cent on the years business, from
whics5 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 81 by the members.
i. AT the end of ten years the mem
oers participation certificate, which
payments to the s,o,e and in pui-
chases Of merchandise, expires and
leaves behind it no claim whatever on
any OF the property or business of the
corporation. Since this project was
launched last fall about $1,000. 900
has been paid in by members. At the
end Of ten years the $4,000 corpora
dollars has that money and whatever
profits may have been made in the
meantime free from all obligations to
members who must come across with |
another 500 each il they wish to
continue their privilege Of buying Of
Townley and his little bunch Of insid-
ers at wholesale price, plus freight
lFHu WI PGt WIN. llTlnS inc .EHD QSI
fifty years many schemes have been
Matched out and operated for the
purpose of separating the farmer
from, his coin, but for pure, unblueh-
ing, brazen. shameless effrontery this
leads them all. Within less thar six
months the farmers of North Dakota !
have turned q million dollars over to
q. company capitalized for only s1o.-
goo and controlled by Townley -ap-
pointed board OF directors of three
members only, responsible not. to the
men who furnish the money and are
expected to furnish the business, but
to Townley for their conduct OF the
affairs Of the company. Any $4,000
corporation should he able to do
mighty we'll for it's shareholders and
directors if it has the opportunity to
use a million dollars Of other peoples
money without interest Inc without
any responsibilities as to accounting, |
auditing and management"
Valley City Barber
Takes Shot al Officer
~