The Bismarck tribune., 1919-03-24
smoke BARRAGE'
OFFICIAL CALLS
T0WNLEY ATTACK
Assertion Made That President
Is Attempting to Mini
mize Disclosures
SOME INSIDE DOPE GIVEN
First Revelations of Transactions
of Consumers Co. Are
Made Public

Made Public
This is the beginning Of smoke
barrage under whicA Townley eX.
poets to remove the Consumers Unit.
ed Stores Co. from the dangerous po
sition it now occupies on the firing
line said state official the mid.
die of last week, when the president
of the National Nonpartisan league
launched his first major attack on the
state officials who are opposing some
Of TOwnley's private measures.
"Mr Townley fears, and believe
with very good reason, exposure OF
operations in connection with tho
Consumers Co. which will not be pop.
ular with the thousands of North Da-
okta farmers who have paid 800
apiece for certificates in this con-
cern," continued the speaker. He is
preparing the league mind to reject
these disclosures when they come by
adopting tactics which have rescued
Mr. Townley and his friends from sew
eral other tight places"
BIG Business Again.
Although resolutions ordering an in
sumers' United Stores Co. we're sign
ed by Governor Frazier, chairman Of
the blue sky commission, as well as
Attorney General LANCER and Secre-
,ary of State Hall, the Townley Or
gans profess to see in this action a
deep:laid plot of big Business" to
throttle the Consumers stores.
The CourierNews tells of meeting
in Fargo last Thursday to raise $1,o01
'Or $4,000" ito be paid into fund of
$4,000 now being raised in the Twin
Cities for the purpose of protecting
the farmers of North Dakota and fight
ing the Consumers United Stores
Co." More details of this plot are con-
tained in the Sunday issue of Town
leys principal daily organ.
Some History.
The COurier-News also gives a. his
tory Of the Consumers Co: which does
rot accord in all "details with the story
which former President John j. Hast.
ings gave the blue sky commission
when the latter had the Valley City
abnk deal under Investigation. The
Fargo paper says: s.,...~. f.
"The Consumers stores were incor-
porated in October. 1917 Since that
time the organization has signed up
over 10000 members who have SUE
scribed over $1,00o,00O. Twenty
four stores are now in operation in
the state, all of which are selling mer-
chandise at price ten per cent about
the wholesale plus freight, according
10 officials of the company.
The organization now holds abou:
$8O0,000 worth of notes of it's mem
mers, and other assets, including fur
Liture, fixtures, ETC., total nearly $780,
900. Collectors sent out to realize on
notes were paid two per cent of the
cash they collected and paid their
travelling expenses out Of their own
pockets. Later, when weather condi-
tions made travel difficult in the win
three per cent"
This is the first public statement
ever made of the affairs of the Con-
sumers'" United Stores Co. John
Hastings, in his testimony before the
blue sky commission, asserted the
company had resources of $500. 900,
and quick assets of $l,25O,0OO. If
there are "a stores established, fact
which will surprise many people who
have followed the operations of the
ToWnley chain store scheme, there
would, under the certificate buyers
agreement, be a maximum of $4,000
actually invested in stock, fixtures and
buildings. 1t is specifically agreed
between the certificate buyers and
the company that not more than $1O.-
900 OF the funds subscribed by any
local company shall be invested in the
store, and that 81, 900 of this amount
shall be used for promotion. The Of
ficials quoted by the Courier-News in.
dicate that less than an average of
the "a stores, and that the whole
number of certificate-holders is 10000
instead of $4,000, as Hastings evidence
would tend to show.
Wholesalers Alarmed.
The Courier-News quotes Consum-
ers' Store executives as stating that
these "a stores are doing so much bus
mess that they are cutting in on the
profits of jobbers and wholesalers
who have as a result planned to raise
q 5000 fund to fight the Consumers
Co., and it leaves the impression that
the action of the blu sky commission,
composed entirely of league members
OF the administration, is in line with
this campaign.
Arrangements are being made to
use the membership notes to finance
the stocking Of stores in other lines Of
merchandise" says the CourierNews,
"and in doing so direct purchases will
be made from the factories. In so
doing it severely threatens the higl
profits of the Twin City jobbers and
wholesalers" -
Some Question Here.
So far as can be learned, the Con-
sumers stores have not given even To-
cal retailers in the towns where these
stores have been established any very
keen competition. In majority of
instances the stores have not carried
q very extensive stock. In many
towns where companies were organ
lied almost q year ago, no stores have
yet,been established.
The officership and management OF
Continued on Page Seven)