Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-08-14
GREAT WESTERN CEREAL CON-
PANv ENJoINEp FROM plsPos.
ING OF LARGE SUM.
SALE OF FORT DODGE PLANT
INVOLVED IN CONTROVERSY
Deal Alleged to Contemplate Monopoly
Of Breakfast Food" conesrns-Sals
Of Two Plants Alleged to Be
Bogus and Only to Promote
Merger.

Muscatine, Aug. 14.-Judge L. ].
Koran, in tie district court OF Musca-
tine county, granted an injunction re-
straining the Great Western Cereal
Company from disposing Of any part
OF the million dollars purported to have
been obtained by that corporation by
a pretended sale Of the plants OF the
company at Joliet, Illinois. and Fort
Dodge. Iowa, to the Quaker Oats Com
pany, and also restraining the Great
Western Company from disposins or
the Muscatine plant.
The court order followed the filing "
a suit by the Fox Security COMPANY OF
Muscatine in which the Great western
Cereal Company. and F. p. Sawyer as
president of that concern, the quaker
Oats Company. and the Continental
and Commercial Trust and savings
Bank Of Chicago as trustee are named
as defendants, and in which It Is asked
that the affairs Of the company De
investigated In the petition 1t 1s ask
ed that the terms. provisions ana con
ditions Of the deed Of trust and oonds
insofar as the rights of the defendants
End plaintiff are concerned be con-
strued and determined by the court
and that the Great Western, F. r. saw
Yer and the Quaker Oats Company
make a full. accurate and complete re.
rort of the conditionS and terms ..
sale. and that If Il found illegal that
the transaction be set eside ana an
n:,,,ed nv proper court order. 1t Is
also asked that the ccnoitton or SOL
vency and insolvency be determined
and that receiver be appointed. II the
Great Western Company Is found 10
be insolveit.
Service was secured upon F. p saw
yer late last night. as he was travei-
in1 on a Burlington train near falf
field. en- route to Chicago from Ne
braska City. ,~
Action is brought by the plaintiff as
a holder of bonds valued at $le,oVo III
the Great Western Cereal Company
Aiiess Monopoly.
Tn the petition it is also alleged lhal
Mr.. SAWYER and other Officers OF tle
Great Western Company nave oen
conspiring to destroy the security "
the bond holders in order that ooios
NAV be thrown upon the market anu
nurchased for a nominal consloera'lo"
40 that creditors and preferred stoeA-
holders Of the company may secure .ne
proceeds OF the property. and II Is ~.
Their alleged shat the PRETENDED sale
was intended to secure to the .suaNs
Oats Company an iiiegaA i'o'oo.s -.
covering the manufacture anu eaAe W.
oats products. ,-..
The suit is an outcome OF pre-
tended sale to the Quaker oats COM
pany of the two large plants ana tne
trade marks, trade names inciuoins
that Of "Mothers Oats" together Win
the good will Of the concern. oy the
Great Western, for pretended pfice
of 100000, which sum the pia mum
declares to be inadequate and "hlcn
transfer is referred to as gross 1rauo
on the rights Of the bond holders IL
heinp declared that the bondholders
being ignorant of the intended sale.
It is stated in the petition that the
Great Western Cereal Company ana
F. P. Sawyer deny that the proceeds
Of the pretended sale is subject to lien
and equities OF bond holders. and that
thew now threaten to use the proceeds
for other purposes than that OF pay
ment or redemption Of bonds. and that
the trustee. the Continental and
Comcmrcial Trust and Savings
Bank has been directed to pay
to the Great Western Cereal Company
the sum of $4,000 Of the million dol
lars, to be used as the company may
determine. The PLAINTIFF states oelief
that the property pretended to be sold
to the Quaker Oats Company was
worth 81, 0o0, 900, and that it was rep
resented by the company previous to
the supposed sale that the properties
were worth that amount. With the
sale it is stated that tho plants re-
naming under the control Of the Great
Western, cease to be growing concerns
and with security for bonds outstand-
ing amounting to the sum Of 1915, 900.
the company is no longer able to make
fixed charges or carry on its business
prof1tably nor to be able to operate
the remaining plants at Muscatine.
Iowa, Akron, Ohio, and Nebraska City.
Neb.
The Local Plant.
1t is also cited that the Muscatine
plant has not been operated for months
and that the Great Western has vol
UNFAIRLY stopped the manufacture Of
oats products here. 1t is also claimed
that the Great Western has for a year
operated at large loss and that dur
ing the past year 100000 was the loss
and 1t is declared that proceeds of
property mortgaged should be applied
to the payment Of bonds and that If
the defendants are not restrained from
divertirg the proceeds Of the sale in
the manner alleged the plaintiff will be
deprived Of securing. and hence the
injunction proceedings.
While the Fox Security Company is
named as the only plaintiff in the ac-
ton it is understood that other Nus
catine people are bondholders in the
Great Western Company.