The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1906-03-01
BIG CRASH HAS COME.
CASH BUYERS UNION OF CHICAGO
PUT INTO THE HANDS OF
A RECEIVER.
POSTAL SlEUTHS ON CASE
Their Investigation of Cooperative Store
Leads to Application for Action
by Courts.

Judge :. IL. Bethca has appointed Ed
win G. Day receiver for the Cash Buyers
Union First National Cooperative so
cicty. The concern Is mammoth mail
order house of $J,OOOOOO capital stock,
supposed TO be modelled after the Man
chester Cooperative society of England.
1t has stockholders among farmers and
laboring people throughout the country.
1t occupies an eight-story building at
Jackson boulevard and Green street.
Postal Officials on Trail.
The action was taken on the petition
Of three creditors who acted at the direct
instigation of the postal authorities, who
have been conducting an investigation
Of the company during the last six
months. Criminal prosecution depends
upon the examination of the books,
which will be taken up under the re
CrivcrShip.
The postofficc inspectors say that ST.
O2T, 900 worth of common stock has
been sold. julius Kahn, formerly with
Sears. Rocbuck X Co., is president. Adj
mittcd liabilities are close to S3OD,Opu
and il is estimated that the merchandise
on hand il NOT worth more than SloO,ODO
The open bank account Of the society
is $50
Seek TO Block Recelvershlp.
Following tins action move to block
the rcceivcrship and all court proceedings
was taken at meeting OF representa-
tivcs If twenty-five creditors held III the
office of the society This meeting was
called for the purpose of ascertaininE
the condition of the society. The Claims
of the creditors represented were SiJOcJ.
\ circular was issued in an effort to
settle the affair without COINS TO court
The petition in bankruptcy was pre-
sentcd by Attorney Edward Everett, rep
rcsenting the Wachusett SHIRT company,
Kirshemer Bros. and the United SHIRT
and Collar company, whose claims ag'
gregatc 500.
Defendant Asks Delay.
The cooperative society was represent
ed by Attorney Jacob Newman. lie de-
rlarrd that the assets of the firm are
close TO 100000, while the liabilities
are not more than 100000. lie oh-
lected to the reCeivcrship on the ground
that il would take but a few days To
get the situation in hand.
Il have received information from the
postofficc authorities which leads me 10
believe that it will be unwlse Tor me 10
wait longer" said Judge Bethea. There
is ground for suspicion from the mere
fact that the postOfiCe men are mVeSt-
eating Mr.. Day was appointed III
bonds of $4,000.
Stock amounting to 81 OPT 900 was sold
through the mails. The stockholders
paid SO share. They were told that
a 10 per cent. dividend would be pad
each year and that stockholders would
receive > per cent discount on all pur-
chases made and a , per cent. commits
sion on all sales made to customers.
Discoveries of Inspectors,
The inspectors discovered that of the
Sl.O27OOO received from the sale OF
stock. 81 ,ONO, 600 from sales of goods dur
ing the last year and thousands of dol
lars received in other ways, all that the
society now holds is placed at "A high
valuation by the postoilicc Nh at 500
600. The receipts of the company dur
ING January and February are placed
Mt $500 600. Many orders have not been
filed, aud many employees have not been
paid. The rental of the building IL
$50 600 a year, and there are 100 en-
ployes.
Bank officials to Be Prosecuted
As the result Of investigation it has
been found that +. +. Creelman of the
dcfunct Bank of America "kited" $40.
600 check to make it appear to the bank
examiners that $4,000 had been paid in
cash for bank stock. Revelations made
yesterday, which exceed in Importance
and uusav0ry features anything hitherto
disclosed. are believed to furnish ample
basis for the criminal prosecution Of the
bank officials.
Settle Boston Bank Failure.
DENVER, Colo. Feb. ~. - Repre-
seutatives of the dcfuucl Provident Saw
iuGs bank of Boston and the Shenandoah
Irrigation and Land company of Colo
RADIO have agreed To- n basis of settle
mcnt of the claims of the bank against
the lrrigating company The agreement
provides that -, II. G. Willoughby shall
pay the receivers of the provident Say
ings bank $1,000 in cash and will re.
ceivc the li2OOo shares Of Shenandoah
stock and all uo's aud bonds of the
company Eow held rs assets Of the bank
MAD ODE DhDhTjn - MOMI