Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1919-04-03
CONSUMERS STORES
SMOKED OUT BY
N. \ BANK BOARD
Certificate Holders to Meet at
Fargo VIII Investigate and
Examine Books.

- ~ NJ 49, 49, 80 0sss '~'
Examine Books.
Bismarck, NJ D., April 2-(spe-
cial) Smoked from cover by the
opportunities of the state banking
board, or blue sky commission, the
Consumers United Stores Co. has
called its certificate-holders to meet
at their local stores" Thursday tc
select delegates to state conven-
ton to be held in Fargo on Satur-
day, (which meeting.i' the notice
lays, will be held to investigate and
examine the books and records of the
Consumers United Stores Co."
Upon the same date the officers of
the Consumers Co. have been "in-
vited'' by the blue sky commission to
appear before it sat its Offices here
to open its books, reveal its manner
of doing business, and show cause
why it should not be compelled to re-
organize on a cooperative basis, or
dissolve and distribute it's assets
among the 15, 900 certificate-holders
who have subscribed the $1,500,00O
in resources to- which President John
j. Hastings recently testified before
the blue sky board.
The local meetings called for
Thursday at the "store points" and
the state meeting called for Satur-
day. both for the alleged purpose of
giving the farmers an opportunity
to go over the books, are the first
recognition accorded the certificate
holders in the Consumers Co. since
they paid in their 500. A few
meagerly stocked stores, in which the
average investment is said to not ex-
ceed $4,000, have been installed by
the company, but in a number of in
stances, such as Strausburg, where
So o, ,0Q0.. wasssubscribed last August,
mouths have elapsed without bring
ing the subscribers even a semblance
Of d, store, In the meanwhile, the
Consumers Co. has accumulated.
according to its president, $1,5O0,-
900. which has been entirely at the
disposal Of the board of directors Of
the parent company, consisting OF
Hastings, Job Brinton4 and two or
three other league leaders. These
funds have been used, Hastings tes-
|tfdeh; to buy; stock In league banks
and In other enterprises.
CAUSE OF LANCER FEUD. y
The attempt Of the blue sky COM
mission, directed by Attorney Gen.
eral LANCER and Secretary of State
Hall, to investigate the affairs of the
Consumers United Ctores Co., is gen.
orally admitted about the statehouse
to have been the cause of the per-
,sonal and direct campaign which
President A. C. Townley is waging
against Attorney eneral LANCER.
The attorney general has never in
timated that he is opposed to any
feature of the league program. He
has never questioned the validity OF
the state bond issues. In every pub,
lished statement he has taken pains
to make it clear that he stands firm
ly back of the leagues industrial pro-.
gram. The Townley drive upon Lam
ger did not begin until the blue sky
commission had commenced nosing
into the business of the Consumers
Stores Co.. Townley was also aware
that LANCER was not in sympathy
with the Brinton newspaper issue and
the one-tax commission scheme. 1t
was only after notice was served on
the Consumers United Stores Co.,
however, that Townley sought to re-
taliate against LANCER by branding
him traitor, coward and food" and
by reading him out Of the league.
COMPANY NEEDS MONEY.
Another development of the blue
sky commissions curiosity about the
Consumers Co. was an immediate
discovery on the part Of this CON-
pany that 1t must have half-mtl-
lion more for Expansion and pur-
poses of propaganda = A .stockhold-
ers,; meeting was, hastily. called. The
haIf dozen inner circle men who hold
the few shares Of capital stock is-,
sued by the company met and unant-
mously voted to issue $50, ,000r in
bonds, to be secured in the ratio of
/ n to- i by farmers notes given In
payment for certificates, and notice
Of the proposed increase was filed
with the secretary Of state by Law
yer Pad dock, Manahan's partner who
is now directing the legal affairs Of
the Consumers Co. Unfortunately
for the plans OF the chain store
scheme, the laws of the state hold
that corporation shall not incur
debts in excess Of It's paid d-up capital
stock, and, inasmuch as the company
admits that$it has issued and paid up
but 81 ,OO IN pital, its bond issue
must be limited to that amount. ( "
PREPARATION QUES1TIO i N
DIS SCUSSED) ] AT PEA I AdcE
cOlFEREN NCE IN PARIS !
q Paris. April /. 2 2 Consid deration of
ne uestipn of reparat ation and the
81 the Rhine valley Was Al
By the council of fonr
Of sPresfd lent Wilson and,