The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-07-31
PLEDGED WHEAT MISSING.
DISCOVERIES 4F7ER 7HE NORTHERN
ELEKiYOR CO,N t.IILUhE

tincates Of the Northern Pacific Grain Ele
vator Company Of Minnesota are atloat, ant
there is said to be but 30 per cent o
their ynlue In wheat in sight as security
The rect, 1t is said. disappeared in the wheat
deal OF last May. Betwee nS6OO.OO0 and $780,
600 worth Of these certificates are hold in
Now England. the greater part being in the
possession OF Boston banks. About 100000 Is
held by banks Of this city. no one bank having
more than $1,000 The Northern Pacific
Grain Elevator Company controls more than
100 elevators, and tho stockholders nre mainly
wealthy men. Its paper has always found n
ready market Among the heaviest stock.
holders IL the family OF tho late David bows.
IL was generally reported at the time OF the
great ATny wheat deal that some OF the officers
OF the elevator company were conspicuous In
II and. shortly after. Mr. Cooksey. David
Dovs's son-in-law, went Wcst to In
oure into the affairs OF the concern.
The condition OF affairs as he dis
covered them caused him to take prompt
and emphatic action. The officers were ut
once removed and tho situation was explained
to the New England and New York banks
holding the certificates. meeting OF bank
officials was held in Boston some three weeks
ago and committee. consisting OF President
George Riley OF the Hide and Leather Bank.
President King OF the Bank Of Redemption.
Boston. and Vice. President George l. Little
field OF the First National Bank OF Providence.
wac appointed to consider a proposition Of
settlement submitted by tho company. The
plan In brief Is as follows:
The elevator company is to rcorganize. with
Mr.. Cooksey as President. q cash payment OF
perhaps sixty cents to be madc at once tho
amount, OF course to depend on the sum real
lied on the wheat in the elevators and the
forty per cent. balance to be paid in INSTALL
ments covering q period Of five years. The
committee met on Friday last in Boston and
practically decided to recommend the accep-
lance OF the terms offered. As to the
prosecution Of anybody in connection with
tho matter the Eastern certificate holders are
not concerned. the object being mainly to
realize tho lace value Of the securities. Bank
affair are loath to give the names OF the banks
Interested: put they are emphatic In the
receive dollar for dollar The large amount
that y ah9at: however indicates that the paper
The Northern Pacific Elevator ' Company.
whore elevators are on the line OF the North
srn Pacific rond. and the Red River Elevator
Company. with elevators on the Great Northern
lines. conducted their business independently
81 the Lake Superior Elevator Company and the
Duluth. which however. controlled their
stock. Whom either OF the country companies
made out their own notes. which we're en-, en-
dorsed by the owner or terminal companies mt
1usut n ana nancy was m cd; Ii there
officials OF the terminal companies. there was
At least laxity. and endorsements were made
The outcome was that when the country
companies met disaster and had to suspend
dorsers on a very large amount OF paper and
liable for practically al the debts Of the two
~ security did not exist. the banks could fall
psSk on ne terminal nal Companies as endorsers.
This condition OF affairs known IN
There was nothing for them to do hut to meet |
hsy could e WITH tha ersdoas
sS.rganization committee was APPOINTED. and
sSpital d stock of the two terminal com panies is
whether or not duplicated certificates have
been been pledges, as collateral because It has
tie the
two country companies. The Northern Pacific |
Company owns in the ne'shborhood Of $50 |
amount Of grain pledged as collateral, At tho
itors got out attachments against n large num-
her OF these elevators and their contents.
their existence prevents the taking OF an in
ventory Of the contents Of the elevators. The
said. but his hands are tied. SO long as the
sstttachnents stand as they are i may be
shst there 70 Ia Srnn enough mo- IA the
:. BosToN. July 2a-The false statement pub
the East have lost ST 81 u. OO0 with nothing to
show for 1t but worthless duplicated grain
elevator certificates is regarded here as n part
Of the bear campaign in stocks.
, What th r. hanks banks have to show for their
companies. whose wealthy stockholders ar" are
Individually liable and have already arranged
with the banks to meet the Obligations. The
Paper Is held In small lots by a large number
- President ,Theorhilus King of the National
ter. said tonight that the holdings OF certif-
Gates in NE, New England were much less than
SaQO.OoO and 5000 900. '''"e'A
bank had only $4,000 worth. There is no
doa a that the proposition Of 90 per cent cash
@ %nd the matep will
Allen B. yining Of FoCg Bros. bankers. of
Boston said that most OF the psper q the ele-
land was sold through his house. although the
amount was much less than published.
Mr. George B. Cooksey. the new Vice. Presi-
end shS G 5nfb u and Elevator
Il SUMMER home Of ' mr. o DaSid gT DoMs
pear lryinGton. Before he would say anything
him story told In Boston about the alleged
Fpsis9nng o. money ,y by officers Of the Northvrn
assaos a soF 9% bPs { was as S
lows; That certain employees Of the Northern
Pacific Grain Elevator Company had dupli.
eested elevator certificates and had depo.ited
coitaternl, and that 100000 had been Dor.
rSSwed on them from Now England banks and
the rest from New York banks: that the dis
cSyery had been made by the Eastern banks
got the grain, and that the Eastern banks had
no security for their loans hut the du picato
certificates. which were worthless.
Mr.. Cooksey listened to this story and then
q with MI. DGws. who advised that
got into carriage with the reporter and
who Is a member Of the REORGANIZATION Com.
mtttee OF the Lake Superior and the Union |
anu Elevator companies. After
> half hours conference with Mr. Patton. this
BtAtement wns dictated:
,, The Lake Superior Elevator Company and
me Upi9p Improvement and Elevator Com
pany. both OF Duluth, own a majority of the |
stock In two, country elevator com panies.
oany. on the line Of the Great Northern Hall
80 ana the Northsrn Pacific Company.
TISadii Neither Of these latter companies
orgnRiaation OF the railroad company