The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-09-11
TRUAX N
HIS CONNECTIONS
MITCHELL. GRAIN MAN MADE
PROMINENT in THE DEALING
OF THE SHEPHEltDSON
GRAIN COMPANY TEII.S
OWN STORY.

A. \. TruaN OF this city, promin-
ent grain and business man today
denies that he was ever in any con-
nected with the Nj. T. Stephenson
Co, as N OF its officers. had moth
ing TO do with the alleged embezzie-
ment OF $leo, 600 and declares that
ii thar amount OF money was EN-
heZzled as has been charged. he had
nothing whatever to do with il. Mr..
TruaN has been arrested ere and is
being held under bonds OF 100000
ON the charge of being Il fugitive
from justice and is awaiting the ac-
tion of the governor of this state in
granting requisition papers, calling
for his return to Iowa on the charge.
Whether or not those paper have
even been asked for by the Iowa gov
crncr is not known here. Mr., King,
a prpminent grain dealer and land
owner Of SiauN Citv and Nj. r. Shep-
herdsor of Washington state ii is
said VIII be arrested on similar
charges as She one lodged in Sioux
City against MIR. TruaN, that of the
cmbe22lement OF $3.50. 900.
The Sioux City dispatches give the
following account OF the affair in
which MIR. King is quoted quite ex-
tCasively:
Indicted Last March.
The arrests came as the result OF
indictments returned by the March,
1912, grand jury, which have been
kept secret until last week. Politics
has been given as the reason for the
delay. The case concerns the affairs
of the Stephenson Grain company,
now out of active operation,
In the information filed before
the grand jury, it is alleged that the
three men, as directors of the com
pany after its reorganization in 1909,
appropriated the funds of the reor-
eaniZed company to liquidate the
debts OF the original partnership.
known under the same nalne but not
Incorporated. The amount appro-
priaied is given as $l60, 600.
The whole case has arisen over
the attempt to use the court as :; col
lection agency" declared Mr.. King
this morning when informed of the
Indictment.
Il severed my connection with the
partnership two years before the re
organization, selling my interest to
Mr.. TruaX. | had no stock at all in
the new corporation
Backed the Board of Trade.
Mr.. King asserts that Stephenson
was the real case of the Insolvency
OF the original partnership. MIR
Stephenson lost the money in spec
nlation on the Chicago board OF
trade declared King this morning.
II do not think that Mr.. TruaX was
involved in the tangle to any eX.
tent. The partnership became in
solvent with liabilities amounting te
approximately $500, 600, it is assert.
ed.
lieQuisition papers have been is
sued for the return of Sllepherdsor
from Washington and will be served
within the neXt few days.
The original partnership wa.
formed by Messrs. Stephenson
TrnaN and King in 1896 when the,
opened their offices in this city. TIL,
business was gradually extended un
I'll l6 grain elevators in South pa
kota were controlled. Through In,
speculation of Stephenson, as al
legged King. the firm failed. Tn,
crisis came in 1899.
The information placed before In,
grand jury asserted that the three
men of the original partnership wer,
the directors of the now corpora
tlon and had control of the finance.
Out OF the funds of the new com
pany, the information asserts. $16O.
900 was paid out to cover debts con.
~tracted by the partnership. The cor
poratlon has since gone out of bust
ness.
Behind the whole delay in the cas-,
is thought TO have been anothe,
strong reason which hints at start
ling disclosures that may follows
The ENHANCEMENT of other Siou,
City interests in the affair has beer
SAID to be almost a certainty. ant
II Is believed that an attempt to in
dict additional parties at the time o
The three original indictments. fail
ed because of lack of sufficient in
eliminating evidence.
Information is thought 10 have
been laid before the present grant
jury last week and another failure te
ndict recorded.
The Stockholders.
h incorporated company aban
doned active business two wears arc
and closed its offices in this city. M
bankruptcy proceedings We're filed
as the stockholders were the only
losers, Mr.. King today asserted.
The incorporators of the company
were George Shanard and William
Kaiser. John Doering and Charles
I~ehnpfenning, of Parkston, s. d.;
George Terwilliger of Sioux City, and
TruaN and Stephenson.
Mr. TrnaX $ now president of the
Trnax Grain company. of Mitchell,
n holds a similar Office with the
MT. Verno Milling company. He has
been a resident Of Mitchell for the
past 10 years ana has ranked as AN
~lnlmeMtial citizen and business man