Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-06-14
TRUST COMPANY
MUST EXPLAIN
SPECIAL Meeting OF BOARD OF
RAILROAD AND WAREHOUSE
COMMISSIONERS CALLED TO
HEAR ANSWER OF THE DAKOTA
TRUST COMPANY.

| Hon. VIII. Stutsman of the board of
railway and warehouse commissioners
will 60 to Fargo within the next ten
days to attend meeting of the board
which has been called for special
purpose. At this meeting, represen-
tatives of the Dakota Trust Company
of Fargo, must appear before the board
and show cause why forty bonds on
elevator companies which the trust
company has written should not be
cancelled.
Mr.. Stutsman has no personal feel
ings against the trust company nor has
case has arisen over the Kiltner case
Of Turtle Lake. In speaking o. it,
to the Tribune's Mandan correspon.
dent Mr. Stutsman said in part:
Last fall the fiat house which was
managed by Mr.. Killer at Turtle
Lake went bump and left large lot
of farmers of that vicinity with num-
Der of storage tickets and nothing to
show for them. The reason that
some of these cooperative elevators
go bump is that the grain which is
bought there is not always properly
graded. For instance here is far
mer who is a heavy stakeholder in
the elevator company and has several
hundred bushels Of grain which he
takes to the elevator. The manager
of the elevator is man whom the far
mer has helped to employ. and hence
in a sense is the farmers hired hand.
The farmer goes to this manager and
tells him to grade his wheat as No.
hard, and the employee whom the
farmer has helped to give the job to
usually does as he is told. However
when his wheat is shipped to market
at the Twin Cities. the experienced
buyers there grade about three-quar-
tiers of it as No. 3, a little of it as
No. 2 and maybe some of it as No.
l, so the elevator company out in
North Dakota loses money. After
five or six months when the manager
goes to check up he will find that the
company is in debt about $4,000 and
there will be trouble ahead for the
stockholders.
This may not have bcen the case
in Killers elevator, and again it
may have been. 1t is the case in a
large number of the Farmers eleva.
tors throughout the state. However,
the killer elevator went bump and
the Dakota Trust Company was on it's
bond in the sum of $1,000 as provided
by law.
1.-THE commission learned that the
Trust company. instead of settling up
for the full amount Of $4,000. sent an
agent out to Turtle Lake and secured
releases on all claims against the
trust company at rate of about so
cents on the dollar.
when the warehouse and railway
commission heard of this last Febru-
airy, the trust company was notified
that the farmers who held storage
tickets should be protected on pro
rata basis on the full amount OF
the bond. The company was there
fore given thirty days notice 10 make
full settlement on its bond. The
time limit on this expired week ago
and the company had taken no notice
of the order. They claim that they
hold releases on all claims and are
under no further obligations.
Accordingly an order has been is.
sued for a special meeting of the
board which will be held at Fargo
and at which time officers of the trust
company must appear before the board
and show cause why all the rest of the
elevator bonds. about forty IN number.
should not lie cancelled. In addition
to this a protest will probably be filed
with the commissioner of insurance
that the trust company made unsatis
factory settlement and it may be
barred from writing further insurance
of any kind within the borders of the
CT