The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-07-24
SENSATIONAL
CHARGES MADE
Continued From Page One.

Continued From Page One.
from the organization of said corpora,
ton to the present date, but it appear
ed therefrom that no entries had beer
made in said books since the 18th day
of June. 1914.
That said books indicate, and it is
a fact, that during the past two years
or more said corporation has main
tanned and operated offices at Mime
apolis and Superior for buying and
selling of grain on commission for it's
customers.
That during the fiscal year from
Aug. /, 1912, to July 81, 1913, it ap-
pears from said books that the bust
ness at said Minneapolis office was
evidently conducted by one George S.
Lotus under a contract by which said
LOTUS received One-half Of the gross
earnings Of the business at said office,
That said gross earnings of said
Minneapolis office for the fiscal year
ending July 81, 1918, are entered in
said books of accOunt and there stated
to be $15.540.32, half Of which sum.
viz, $7,77O is entered as due to said
corporation from said MINNEAPOLIS Of
flee, said earnings being entered as a
single item and not itemized so as to
show in n way of what said earn
ings consist, or how said sum was
computed. That it appears from sai%
books that said corporation charged
on it's books as operating expenses of
said Minneapolis office during said
fiscal year ending July 81, 1913, num-
erous items a~ggregating $5,475.17, so
that the apparent profit from said Of
fee is made to aPpear tO'be 5 1924. 90.
but said expenses so charged DO not
include the sun Of $3,214.47 appear
ing on said books to have been paid
out as expense items for commissions
and soliciting grain shipments.
That said books do not disclose
what were the terms of said contract
for the operation Of said Minneapolis
office.
That the said books Of account do
not show what were the earning or
expenses Of said Minneapolis or Su-
periOr offices during any Of the time
since July 81, 1913, and do not dis
close who are in charge Of the business
at said respective offices or under
what arrangements or contracts said
offices are conducted. That J. M. An
derson, the president of said CORPORA
ton, refused to inform you petition-
efs under what arrangement said Of
fees were conducted.
That shortly after the close of the
fiscal year ending July 81, 1913. the
secretary and treasurer of said cor
poration, G. A. Thiel, prepared and
sent out to stockholders a statement
~purpOrting to show the financial con-
dition Of said corporation at the close
Of business on July 81, 1918, which
statement in substance was as fol-
lows:
Resources.
Bills receivable ........... SIS, 909.54
Balance in bank ............ 212.67
AQtomoolfe ...... .......... 10000
Elevator supplies n books 10000
interest ............ 100000
Moorhead roperty ........ 100000
FURNITURE ana hXtures ..... 710.98
TeCeIEaDle '...'... 4,433.3O
-
1otal ~Sourc .$21,166.49
Liabilities
interest ..... ..........$ 1880
bliIs PdSdpR ...... 100000
4EcGunto pdydOie .'''' 8l2.0
"otAlnS capital ".''''...''' 24,6|S.72
"
I0Cdl ;''. WI, l66.49
hdt I"9 Salo statement was false
anu IniSleauing IN thiS' mat the true
amount OF Oils TecelVaDIe as shown
US He ooohS Oh acCouht on July 81
ISlS va SONY %IO,9V9.o4. The items
g. S9UV Ior a~utolnonnio ana $IlO.98 for
1uTHllure ana 9Htures were the orig1-
ndl COot o. Sdiu Items, Sdld
HaVlnS Deeh Oousht IN I9l2, and the
tuIhlture II nAtures from time to
Iline curing I'LL, I9lZ and 1913.
ne lIehl lot Moorhead property or
s3,oVV was purchased IN l9l2 Tor w.
oO0:
me ltenl OF $1,SVo Tor interest Is a
sum enteleu on ihe DOCKS or account
dppdl GlllN llIe1u6O TO represent ac-
cluea ana uhpald interest on bills re-
CelVaOIe' tnat SAID amount is appar-
ehIly greatly IN excess or the actual
accrued ana unPald interest on bills
lecelVa Ole OF SAID corporation because
all the ollls recelFaole or said cor
Pordlloh consisted OF notes given for
TIE purchase price OF stock from time
10 Time from the organlzatlon OF said
corporation IN l9ll to July 1913, ex-
Cept one noIe IoF WOW gwen in 1917
LOT the price or an old automobile sold.
Ihat the aggregate amount Of inter-
est collected on noteS from I9l2 TO
1915 was $'2V' and the aggregate
amount or ollls receivable on July 81,
1918, was only $lO,9O9.54.
n the capital stock liability for
STOCK sold tor cash or notes aggregat-
cd on July 81, 1913, as shown by said
books OF account the sum of $28.35O,
SO tnat on sald date the aggregate IL
aolllt1es or said corporation shown
by said books of account, were the
sum OF $3O,837.67; n its aggregate
~esource taken at their face value, as
entered on the books OF account were
only $22,l66.49, thus showing a deficit
and Impairment Of the capital in the
sum OF $8,67O.18. That the actual
deticit was evidently several thousand
dollars more than SAID sum ecause 1t
is apparent that the resources were