Evening star., 1936-03-29
BY John C. HENRY.

Disputed figures involved in transfer
of partial ownership of the Townsend
Weekly, prosperous publication circu-
lated among followers of the old-age
pension movement, were intriguing
committee members and counsel today
as the House investigation of the en-
tire Townsend set-up simmered until
Wednesday. Some questioning on the
subject may be expected when open
hearings resume, Chairman c. Jasper
Bell, Missouri Democrat, said yester-
day.
The transfer, as announced in Los
Angeles on Friday by DR.. Francis E.
Townsend, co-owner, brought full
ownership to the doctor through pur-
chose OF the so per cent interest Of
Robert E. Clements, retiring national
secretary and treasurer of Old-Age Re-
volving Pensions, Ltd. The price paid,
according to this announcement, was
$4,000, Of which $4,000 was taken
from accumulated profits of the week
ly and $4,000 was borrowed.
Clements has not been quoted di-
1VSI4y dC w LA}C 41C dNbudhJ 4S-
ceived, but, according to Chairman
Bell, the committee understands that
half the sum was marked as "divi-
dend," while the remainder was pur-
chase price turned over by Townsend.
Such an arrangement raised two spe-
cif1c questions.
Total Profits in Doubt.
First is the question Of whether DR..
Townsend declared himself a $4,000
dividend when he declared one for
Clements. Although the Los Angeles
announcement said that $4,000 had
been borrowed to complete the S50,000
payment, the statement did not say
definitely that $4,000 was the total
of accumulated profits available.
On this point, it is reported by
source close to Clements that such
profits available at the present time
are closer to $4,000. The same
source, incidentally, reports that ad-
vertising contracts on hand from West
and Midwest grocery chains amount
to 100000 as a conservative" es-
innate.
The only specific reference to
Townsend weekly earnings thus far
introduced into the record of the
House committees hearings was Glenn
ents' statement on Friday that he had
received dividends in 1885 amounting
to $3.50, plus salary" of $3.50.
The second major question CENTER
ing on this change of ownership is
why Clements should surrender half
interest in publication Of such lib
eral dividend tendencies.
Magic Name Involved.
The answer, according to sources
close to both Townsend and Clements,
is that the doctor originally made the
$25, 900 offer, that he later declared"
the $4,000 dividend" and that he
told Clements to accept the terms or
he would withdraw the magic name Of
Townsend from the publication and
set up a rival paper. Such action
virtually would destroy the earning
power of the original weekly, it was
conceded, and the deal went through.
From this background of rumor and
confusing figures, the committee hopes
to learn actual circumstances of the
sale and Of previous earnings Of the
publication, Chairman Bell said.
Numerous other lines of inquiry are
being laid by Committee Counsel James
r. Sullivan as auditors and investi-
gators continue their study of o. A.
r. P. records.
First of these, Chairman Bell indi-
Gated, will be disclosure Of o. A. r. P.
receipts during the last three months
of 1885 and the period since then.
Agents Of the committee are gather
ing the data on the final quarter Of
1885 at the City Bank here. The
! Townsend eroup maintained four &C.