The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-08-29
ENDS WELL KNOWN
ACCOUNTING
SUIT
History of Action of Farmers
Elevator Company of Aneta
VS.. Gunderson, ct al.

oASv0oOA SVAAe0Ay VI xAuCtd
VS.. Gunderson, ct al.
The final arguments in the case of
the Aneta Farmers Elevator company
VS.. ]. G. Gunderson and M. E. Sperry
were submitted to Judge Fisk Monday
afternoon by the attorneys of the re-
spective parties. At the close of the
argument, Judge Fisk ordered the ac-
ton dismissed as to Mr.. Gunderson.
At the time of the trial, about week
ago, the action had been dismissed so
far as Mr.. Sperry was concerned, the
company having failed to produce any
evidence as against him.
This action was commenced by the
Elevator company last April. 1t was
charged, in substance, that Mr.. Gund.
ersOn had been the treasurer of the
corporation from the organization of
the company in 1908 until July. 1906,
and chat Mr.. Sperry had been the
secretary of the company during
part Of that period. 1t was alleged
that the company had made large
amount of profits in its business of
buying and selling grain during this
period, but that the exact amount of
these profits was unknown for the
reason that the defendants, especially
the defendant, Gunderson, had eXer-
cised control over all the business of
the company and had kept all its ac-
counts, and then at the end of his
term of Office had refused to dis
close to the directors the true status of
the company's finances, and acting in
collision with the other defendant,
Sperry, had conspired with him to con-
ceal from the company its true finan-
cial condition by c0ncealing and with
holding its books, accounts and papers.
1t was further charged that the defend
ants had refused to comply with re-
peated demands made upon them for
the production of such accounts and
papers. 1t was then alleged, on in
formation and belief, that the profits
made by the corporation during the
period in question, over and above
all legitimate expenses and disburse-
ments, was the sum of ten thousand
100000, no part of which had been
in any manner accounted for by the
defendant, Gunderson.
Upon these allegations, the plaintiff
prayed for an accounting and a judg-
ment against the defendants for such
amount as might appear due from
them to the corporation.
The defendant, Sperry, answered and
admitted that he had been the secre-
tary of the company for one year, from
September LIST, 1904, until September,
LIST, 1905, but denied that he had ever
withheld any papers or books from his
successor with the exception of one
blank check book.
The defendant, Gunderson, answered
separately and admitted that he had
been the treasurer of the corporation
during the time in question and had
received into his hands certain sums
belonging to the corporation but al
legged that he had faithfully kept ac-
count of the same and paid the same
out upon the orders of the corporation
and its officers. He stated, further,
that since the termination of his Of
flee in July, 1905. he had received
certain funds into his hands amount
ing to, in all, with the money in his
hands in July, 1905, the sum of $2725.-
IS, but that all of this money had
been disbursed by him in obedience to
the orders of the directors and other
officers Of the plaintiff, excepting the
sum of $27.01. which he still had on
hand and which he was willing to turn
over at any time upon a proper order.
He denied all the charges of con-
spiracy and lack Of good faith, but
admitted that he had in his hands GER
tain vouchers and statements belong
ing to the company and relating to the
conduct of his Office as treasurer and
that he had withheld those statements
and accounts because his successor
in office and the other officers of the
company had refused to give him a
proper receipt for the same showing
simply that they had received them.
At the trial no evidence was pro-
duced against Sperry. but a large
number Of witnesses were sworn,
among them being most of the old d.
rectors as we'll as the present directors
of the company. all but three of whom
were witnesses for the defendants.
The facts alleged by Mr.. Gunderson
were conclusively proven and at the
close OF the arguments Judge Fisk at
once directed dismissal of the action.
1t appeared when the facts were in
vestigated that the action had been
brought on account of the failure
of the officers and directors of the
company, in control of its affairs at
the time when the action was COM
menced, to understand book-keeping
and to understand the methods by
which the accounts of the company
were kept. There was also a SUCCESS
ton of Interior motives for the bring
ing of the action. arising out of polit-
ical and business rivalry. The net re-
suit is. that Mr.. Gunderson and Mr..
Sperry stand completely exonerated
from all charges Of acknowledgement
or dishonesty in the premises and that
their administration of their offices is
conclusively shown to have been faith
full. honest and able.
Both gentlemen. but especially, Mr..
Gunderson, are widely known in this
part of the state. having large bust.
ness interests and having been prom
inent for years in politics and in busi-
ness life, and they and their attorneys
are much pleased over this vindication
which they have received at the hands
of the court after such thorough in
vestigation. The Elevator company
was represented in this action by
MessrsNorskog & Hagen of Aneta and
Rex & Davis of this city. while Gunder-
son and Sperry were represented by
NJ. A. Shirley, Esq, of Aneta and
Messrs. Skulason & Skulason of this
city.
A MONSTER RIG.