The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-12
FIND
HEAVY SHORTAGE
JOLT FOR COOPERATIVE LIVE
STOCK ASSOCIATION.
Manager, Bookkeeper and Treasurer
Alleged to Have Enbezzled $4,000
from Kensett Company - Funds
Thought to Have Been Squandered
in Board Speculation.
Special to The Journal.

Special to The Journal.
Webster City, Iowa, Jan. 12.-suit has been
instigated at Northwood by the Farmers Mutual
Cooperative Livestock association of Kensett
Worth county, to recover $26, 600 which Manager
f. E. Ellingson, Bookkeeper T. S. Bakken and
Treasurer Haugen are alleged to have misappro-
priated. The affair has caused a sensation on
account of the prominence Of the men charged
with the wrongdoing, and from the further fact
that Iowas first cooperative concern has gone
hard upon the financial shoals. Nearly 400 farm
ers are members of the association.
The matter was brought to a crisis at the
annual meeting at Kensett. Nearly all the
members were present and when the report Of
the expert accountant, Hort Francisco, who had
been engaged to examine the books was read
they became wildly excited. Francisco claimed
that there was a shortage of about 81, 900, when
there should have been surplus of $40, 600.
Ellingson and the others were represented at
the meeting by Attorney johnson of Northwood
First, Mr. johnson asked the members to re-
elect the old officers, but the farmers refused.
Then he pleaded to have the case adjusted out
| of court. The farmers would not listen to this.
either, and adjourned without taking definite ac-
| tion. Some of the leading members evidently
got together after the meeting, af the suit was
| fled r . 80
Treasurer Haugen is nephew of Congressman
Gilbert N. Haugen of this state. He is also cash
Ter Of the Bank of kensett, of which Congress
man Haugen is president <-- '."-
While Haugen is not directly charged with
| being responsible for the loss, he is made joint
| defendant In the action on the charge of cashing
!
| than the organization was supposed to be inter
| ested in. >
! On account Of Congressman Haugen being pres.
| 1dent of the Bank of Kensett, in which the So
| ciety had its funds deposited, many of the farm
ers who are hit are blaming him. The cooler
ones, however. exonerate him. 49,
| 1t is also claimed that Bakken, the bookkeeper
| was aware that the funds Of the organization
were being misa appropriated. . s-
| The members of the association make ope1
| charges that Manager Ellingson has been using
! their funds in speculations on the Board o
Trade. Ellingson has been connected with tn,
organization and has always been highly though
! of in the community.
The organization is .one of the strongest co
operatives In the state, and has been very sue
cessful. 1t is incorporated and every year hal
been amassng surplus for working capita
instead Of declaring the entire earnings as
dividend In this way it is said that $19, Oo
was accumula ted - ~
Professor Towle. formerly of this city, bu
now OF Little Falls, Mimi, has sold out his bust
ness at that point and accepted position
manager OF the travel department of the Burea
OF University Travel of Boston. His headuuar
tiers will be in Boston, where he will spen
about seven months Of the year. During tn
remaining five months he will be in Europe
Asia and Africa. :,
The university tours limited to twent
persons and are largely in the nature Of finish
:, Ing or completion of college and universit
studies They are mapped out with special ref
| erence to certain lines Of study and upon til
. | cruise lectures are delivered.