Evening star., 1936-04-02
Townsend
Continued From First Page.)

March, 1885, amounted 10 SooO 10
$500 a week.
The committee opened its after
noon session at 2 o'clock.
Curatives 80 Per Cent.
Accusation that 90 per cent of all
advertising in the weekly was for cura-
tives directed particularly at old per-
sons was made by Sullivan.
Clements, former co-owner OF the
weekly, denied the charged, but was
forced to admit large income from
this source as Representatives Gava-
gan, Democrat, Of New York and
Lucas, Democrat, Of Illinois jumped
on the issue.
He claimed "disapproval" Of much
Of the advertising, but admitted joint
responsibility with DR.. r. z. Town
send, co-owner, for whatever appeared
in the paper.
To substantiate his charge. Sullivan
read numerous advertisements for
"rejuvenation Of weak glands" "rheu-
matism" and female trouble"
Did you think such material was
helpful to promoting the Townsend
plan?" Lucas asked.
No"
An April issue in 1885 carried an
advertisement on how to be married
at l20." described as too good to be
true"
You took money for that advertise
ment, notwithstanding the fact that
you called your movement most hu-
manitarian?" Lucas demanded.
Il suppose it was paid for" Clements
said.
Another promised life for 100 years.
Most of them advertised some out
landish cure" Clements said.
II wouldn't say that DR.. Townsend,
as a medical man, indorsed all Of
these" he continued. as Representa-
tive Otter. Republican. Of Pennsyl-
vania quizzed him.
wasn't DR.. Townsend held up as
an eminent physician before Town
sendites?" Chairman Bell asked.
Yes" Clements said.
Blamed Ad Manager.
Much Of the responsibility was
placed on Cert by Clements, but the
latter admitted no attempt TO dis
charge the ad man until few weeks
| ago.
At that time. Clements said, he
suspected Cert Of not being honest
with the company. DR.. Townsend re-
fused to approve dismissal of Cert, he
added.
A second feature Of the hearing was
the charge Of Gavagan that Repre-
sentative McGroarty, Democrat. of
California had abused his congress
sional privilege in supplying copies
Of his bills to o. A. r. P. for sale
McGroarty paid cost Of printing
however.
Workings Of Modern Crusaders.
Sullivan opened the days question
ing on the subject Of the Modern
Crusader, predecessor of the Town
send Weekly.
Clements said c. J. Mcdonald was
editor of the publication, and q mis-
understanding" arose as to whether
Townsend and Clements or McDon-
aid owned the paper. Out Of the dif-
ference came incorporation Of the
Prosperity Publishing Co. and publica-
ton of the Townsend Weekly. with
Mcdonald left out.
Untrue and ridiculous" Clements
called McDonald's charge that the
Townsend Weekly had stolen" sub.
scription lists of the Modern Cru
sader.
| DR.. Townsend, Clements and an
attorney named Clyde Doyle were in
corporators of the Prosperity Co
They issued $4,000 shares Of no-pa,
stock, Clements said.
He denied issuance Of 1000 addi-
tional par-value shares. divided BE-
tween Townsend and himself.
Only 20 Shares Issued.
Despite the $4,000 authorization
only 20 shares of stock actually wert
issued, it developed later.
Clements admitted no money excep
filing fees had been put into the com
pany by Townsend and himself.
Where did you get money for operat.
ing expenses?" Sullivan demanded.
Isn't it true the Prosperity Publish
ing Co. was financed by o. A. r. P.?'
he added.
"No, SIR" Clements answered.
Starting publication in January
1885, the weekly had a paid circulation
Of 100000 by March. Although market
at cents copy, Clements maintained
mot over $500 or $500 per week" wa!
the circulation income in March.
Many copies were given away, HI
explained, or were not paid for By
clubs.
At this point, Representative Luca.
went back to the o. A. r. p. practice
of selling copies Of the McGroarty bill
Clements said McGroarty ordered extrs
copies from the Government PRINTING
once.
did you know Representative Nc
Groarty was abusing his privilege II
having these bills printed and turnet
over to you for sale?" Representative
Gavagan asked sharply
Representative Hollister, Republican
Of Ohio, interrupted to say he did no
believe such action abuse" as long d
McGroarty prepaid costs Of print
ing. Gavagan disagreed, adding b
considered it an abuse II bills wer'
sold for mailing "pellmell" throughou
the country.
At one time $500 bills were sold, q
another 1000.
"Who paid the rent for Prosperit.
/. Co. In its early nonths7" Sullivan
i Funds "! ! donated BY individual.