The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-07-24

49, 4
grain 0,Glf.4
Expenses Of Minneapolis Of
flee 5,475.17
Advertising 1,870.0(
The remainder of the expenses are
for expenses Of officers and employees
grams, automobile expenses and SINH
lar items, and also commissions paid
for sales Of it's capital stock, it ap'
pearing that a large portion Of the
stock Of said corporation has beer
sold through agents who were paid q
commission of 10 per cent Of the price
received for the stock, all stock sales
having been at par value.
That so far as disclosed by said
books of account the aggregate eX-
penses. including sundry small items
Of losses charged since July 81, 1913
to June Is, 1914, were $11, 0O2.75, but
that sum does not include officers and
employees salaries accrued since the
month of April, 1914, nor the expenses
Of operating the Superior and Mime
apolis offices.
That the total profits during the
same period shown by said books are
only $2,783.72, and there is nothing to
show what earnings, if any, there were
from the Minneapolis and Superior
offices.
That so far as disclosed by said
books the aggregate liabilities of said
corporation on June 16, 1914, were
$41,476.1O, not including officers and
employees salaries since the month or
April That said liabilities include
$37,675 for capital stock sold and 3d.
700 said to have beer advanced by or
received from the Superior office and
credited to that office.
That the total on the same
date are shown by said books to be
only $24,946.26. Said apparent resour-
ces. however, include a balance of S.
1873 charged to the Minneapolis Of
fee after crediting that office
with sundry items aggregating ST.
$50. 68, but there Is nothing showing
what the expenses or earnings of said
office have been since July 81, 1918.
Said apparent also include
sums paid to some Of the employees OF
said corporation, evidently for salary
and expenses, but whose accounts have
not been credited with the salary earn
ed and expenses. Said resources also
include bills receivable aggregating
$12, $500 entered at face value, all OF
which were received in exchange for
shares of the capital stock and are
presumably actually worth much less
than face value; and said resources al
so include furniture and fixtures and
an automobile, both of which are In
cIuded at their original cost, and also
includes the Moorhead warehouse at a
valuation Of $4,000. although 1t was
purchased in 1912 for $500,
That said books Of account do not
show the dates Of the bills receivable
or the names of the makers, and your
petitioners were informed by j. M. An
dersOn. the president, Of said corpora
ton that all Of said notes were at the
Minneapolis office for use as collateral
security If needed for that purpose
That there appears on said books
certain entries indicating that a note
for $4,000 given by New Rockford
IT. y orC' ENloIrofn r nnr1nonIy uno c rnNniU-
ed and sent to the Minneapolis office
and charged to the latter. said charge
constituting part Of the debit items
against said Minneapolis office, forming
part Of the ~ostensfOle resources of said
corporation, but said books do not dis
close what the nature Of said ~transac-
ton involving said note was, or the
extent and character Of the rights and
obligations arising therefrOm.
That amongst the items entered on
said books apparently as an asset Is ar
item of $1,000 appearing to be a con-
tract of some nature with Cooperative
Herald, but the said books do not dis
close what the nature or terms Of said
contract are.
That from said books Of account 1t
appears that the current operating ex-
penSes of said corporation have each
year since Its organization exceeded
the profits by several thousand dollars,
and that the capital of said corporation
has been and Is being rapidly and con-
Sldllly uepl6l6u anu wasted.
That the object sought to be attained
by the Organization Of said corporation
was to furnish and provide a means of
marketing grain for the grain prOduC-
and ultimately to build and equip a
terminal elevator to provide cheaper
facilities and more equitable methods
Of marketing grain.
Blu it Is apparent from the history
and present condition of said corpora
ton. as disclosed by the books of ac-
count. that your petitioners have been
permitted to examine that the assets of
said corporation have been n are be-
ing uSeleSSIy wasted and that as at pre-
sent conducted 1t can never attain the
object for which it was ostenstbly or
ganiZed.
That your petitioners made inquiries
of j. NJ. Anderson, the president Of said
corporation, seeking to secure eXplana-
tons and information concerning the
various transactions indicated by said
books Of account, which are not ex-
planned therein, but said Anderson eth
er would not or could not give your
petitioners any light on the subjects
inquired about; but stated that such
information could be given by G. NJ.
Thiel, the secretary and treasurer of
sale corporation.
That your petitioners first sought an
examination of the books and records
or said corporation on or about the 18th
day Of July 1914, but neither the presi-
dent nor the secretary were in the
office or in the city of Fargo, but the
employees stated that the officers would
be present on July IT; that on July II
our petitioners found the president In
the office who then stated that the
secretary would be present the follow
ing Tuesday and requested delay of the
examination till then; but finally per-
mitted your petitioners counsel to ex-
anime the said journals and ledgers.
Tuesday forenoon July 81 petitioners
counsel again appeared at the office of
said company but were informed by
the president that the secretary was
urged that the petitioners wait until
the secretary's return to obtain the de-
sired information. On Wednesday fore
noon the petitioners counsel, Edward
Engerud. again called at said office and
was again informed that the secretary
was still absent.
The petitioners t~hereupon by their
said counsel, Edward Engerud, de-
manded Of ]. M. Anderson, the presi-
dent Of said corporation, that he pro-
duce for examination the other books
and records of said corporation, and
particularly the record Of the directors
and stockholders meetings, the bills
receivable. and the records or papers
rangement under which the Minneapo-
lis office had been operated during the
fiscal year ending July 81, 1913, and
during the current fiscal year, so that
your petitioners could ascertain what
were the powers and duties of the per-
sons in charge Of those offices, what
their compensation was, and what the
expenses n earning thereof were; and
the same with respect to the superior
office; and particularly also the con-
tract with Cooperative Herald for
which a charge of $500 had been made
as hereinbefore set forth, and then and
spection of all other books, records and
papers required to explain and give in