New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1892-10-12


political purposes.
The following affidavits show.
business methods of Wolcott: u
PETER LARsoN's AFFIDAVIT.
Peter Larson OF the town of New Lon
don, county of Kandiyohi State of Mime
sofa, being duly sworn deposes and says
In the spring of 1888 John Porter, repre-
senting the Scandinavian Elevator
company, came to New London for
the purpose ofbuilding an elevator at this
point and securing subscrip tlons of stock
in the Scandinavia Elevator company. I
spent two days with said Rorter aiding him
i'll soliciting stock. I had known Porter
and considered him reputable and honest
man. II. L. Louckes was the presid ent Of
the company. The plan of the company
as outlined by Porter, was: A chain of
built or bought, extending through the
Minnesota and Dakota wheat regions. An
immense transfer elevator was to be built
at Duluth. G. G. Wolcott was then in
Europe, as Porter represented, to interest
capitalist, and wheat secured by the syn
rect E2 to Europe :. and sold there.
ing. to the producers. Wolcott was the
main manager Of the whole concern. The
subscriptions to stock were made With the
distinct understanding between subscribers
and Porter, as the agent of Wolcott and
Others, that the subscribers were to own
the New London elevator and elect the
manager. Neither promise was kept. The
stock was in shares of $40 each. This de-
ponent subscribed for five shares and sub
sequently bought five shares, making ten
shares held by him. One share entitled to
a vote and ten shares made the holder
eligible for election as director. About 14O
shares were subscribed in New London and
vicinity.
An elevator was built at New London,
costing about S, 200. It had been claimed
that the elevator would pay considerable
above the market price for wheat, but this
was only done, as a matter of fact, when
forced to by one or the other of two eleva-
tor companies at New London putting up
the price. For two years the company
had no money to buy wheat ard it went to
other elevators on this account. The credit
OF the company was poor.
Prior to the fall OF 1890 the name of the
company had been changed to the Alliance
Elevator company. Shareholders be-
coming suspicious and impatient this de-
ponent was given number of proxie and
delegated to attend the annual meeting Of
the company at the city Of Minneapolis in
August $780, AT that time six elevators
had been secured by the com any the one
built at New London being about the first.
At that meeting deponent, for the first
time, learned that the elevators had one
and all been mortgaged for the sum of SIS, :
OOo: At this meeting deponent was elected
q director OF the company. President
Loucks, at this meeting stated that the
company then owed 81 100 for wheat con-.
signed to them. This money, he insisted.
must be raised at once. He claimed that
there had been loss of $500 on wheat
bought at the New London elevator. This
statement | did not believe then, nor do I
believe it now. Soon after deponent re-
turned home Loucks wrote to him to come
to Minneapolis and he complied. Loucks
then stated that So 200 must be raised ct once
IN order to carry on the business. Depon-
ent told him that no money could be
raised at New London, as the people had
lost all confidence in the company. Depo-
nent told him there was chance to rent
the New London elevator, and it had hest
be taken. The elevator was then rented to
Marcus Johnson at $500 per annum for a
single year.
Deponent again met with the directors in
February, 1891. The liabilities Of the COM
pany could not be ascertained by him.
they were SO great, however, that an as
Segment was deemed best. The wheat
bought by the company was all handled by
Woodworth y Co., of Minneapolis Loucks
claimed that the firm waste receive half q
cent per bushel as commission, und eragree-s
ment. but Wordsworth & Co. CLAIMED one
cent per bushel commission. and foreclosed
the mortgage on the elevators in the spring
of189l, or whereabouts, for money loaned
the company. The elevator company new
er made statement in writing to the
board of directors, to my knowledge nor
We're the books ever produced TOR examina-
ton. President Loucks made verbal state
ments only.
This deponent is fully satisfied from his
knowledge of the company and its meth
DDS, that was fraud from first to last,
and he believes that the objecs. of the or.
sganization of the Scandinavian Elevator,
company, afterwards the Alliance Elevator
company, was for the purpose Of dishonest