Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-04

approach them in regard to paper,
which would have Messengers
approval" Such combination,
working in conjunction with the
fiscal agents and promoters Of both
packing companies, was unbeatable
FROM a viewpoint Of getting the
money "or the promoters.
This the promoters knew when
they engaged with Messenger in
the process Of disposing Of promo
ton notes. The promoters Of the
Iowa concerns went even further in
laying their wires. When they en-
gagged w. G. McDougal as treasurer
and financial agent of the company
handling Associated Packing paper.
the promoters Were aware that Nc.
Dougal was related to q regional
director of the federal reserve sys-
tenn. This line. so the promoters
believed, made the Chicago reserve
bank accessible to them in the dis
posal OF notes. That such was the
case. Is somewhat shown to be true
by the report that upon one Of Nc
Dougars trips to Chicago. he re-
TUNED home and said no had placed
S1,O00,o00 in paper, and brought home
the money for 1t.
With Messenger furnishing an out
let for Midland and Associated pa
per, the promoters sought out other
politicians, such as NJ. Nj. Head, of
Jefferson; II. L. Bump, OF Des
Moines; Charles Witt, secretary to
the governor, Messenger and Witt
being especially close to the Sal
tngers. and connected with repub-
Hcan politics of the day, the promot-
ers took In such lesser political cell
ebrities as Mayor Tom Fairwea the..
OF Des Mofnes, and then came the
following of small town bankers and
men politically and otherwise promi-
nent in their home communities.
That the plan of the promoters
worked we'll. with Messenger and his
deputies named herein standing
ready to push the clearing of pro-
motion notes, Is evidenced by the
tact that many Iowa bankers loaded
up heavily on the offerings.
1t was quite easy to talk J. w.
Hioos, merchant OF Numa, Appa-
moose county. into buying his first
$4,000 worth Of Associated Packing
stock.
Big Prifits to Banks.
With the banking superintendent
favorable. and the state house evi-
IDENTIFY politically lined up for the kill
Ing, the promoters of the Associated
and the Midland procured letters
without end from many bank officials
In Iowa. Then came the clear
ance Of stock sales notes and paper.
Some banks. it is reported upon good
authority, realized as high as 10 and
10 per cent on discounting notes
Some realized better percentage, an
Ida county bank discounting last year
the $500 note of a farmer who bought
Midland for $3.50. The Central Trust
OF Des Moines stands as realizing
occurred interests ON notes taken
pulls per cent, SO It is reported upon
unippeachable authority.
To the promoters. Iowa was o field
of golden dollars, while Midland and
ASSOCIATED stock was being sold. The
Linden bank. Messenger, his CO.
workers in the game and eager
bankers made the discount Of notes
the easiest thing in the world. Money
might be easy in a dozen, half
hundred, or hundred Iowa banks,
and no man know it SO well as Mes
senger and his examiners. Bankers
who listened to the words of Mes
senger now whisper their regret.
The banking superintendent's Of
flee said the paper was good, and we
took 1t, and issued G. DIS on It,"
they said. "Of course there was a
profit-but wouldn't you have been
willing If you were a banker, to take
paper you had been assured would
be passed by the banking superin-
tendent?''