The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-02-28
POTATO CONTEMPT CASE
After Session This Morning Judge Nyc
Ordered "a Recess Until Monday
Morning Next,

The hearing of the contempt cases
against r. {. Carey and c. W. Bern
the district court, here, this morning,
before Judge Nye. There. are two cases
and the testimony in the first one had
not all been submitted at the time OF
the noon recess when Judge Nye ord
cred an adjournment until Monday next
at 8 a. m. o. d .as-8'
During the giving of the testimony,
ESs;terday' attorneys Peterson am
holders Of the association n the de-
PENDANTS alleged to be In contempt be-
came involved in a hot wrang1e and for
some minutes 1t seemed as though a
sensation would ensue. p p. y ::
IN connection with the. GAINESVILLE
potato muddle out of which the CON
tempt cases are an outgrowth there
are a score of cases pending on the dis
trict court in Moorhead, two at Fergus
Fails in addition to a petition in bank
ruptcy. .."~ t.
In a version Of the history OF the
potato association at Barnesville
launched with a flourish of trumpets,
1t is alleged that the crop of 1912 POI
tatoes was difficult to sell, q state
ment considered ludicrous by the. ma
Jority of potato growers ana dealers in
carey, who was then in charge Of the
GAINESVILLE National bank, took a trip
70 Kansas City and on returning in
formed the farmers that potatoes could
be sold there; for nearly twice as much
as was being paid for them in Barnes
vile. The outcome of his visit was the
formation. Of the Red River Potato
Growers association with an authoriz-
ed capital of $40, 900. Mr.. Carey was
an officer Of this association, but he
was a large stakeholder and was elect
ed manager. He was succeeded in
August, 1913, by c.. w. Bernhardy. ,
Trouble Begins.
Matters progressed with more or less
I1r2 q nd 1nyrr- NTH Tim eor Il rnc IN
October 1913: This frost caught a
large quantity of potatoes belonging to
the ASSOCIATION both on the tracks at
GAINESVILLE and in transit, n Destroy
ed them. h question who was to
stand this loss at once came up. n
trouble followed. The banking de-
partment Is said to have advised the
banks not to honor drafts against bills
potatoes that had been frozen, and this
left the association short Of funds.
some or the shippers became uneasy
and started suits to collect for the po-
tatoes they had delivered.
On Jan. 1. Bernardy resigned, as
manager for the Red River association,
organized a new company known as the
Mtnnesota-Dakota Potato company and
leased the warehouse from Carey. This
warehouse now contains about 1900
bushels Of potatoes.
Judge Nye Appoints Receiver.
Troubles began to increase at
GAINESVILLE, suits galore were institut-
ed against different parties by grow
ers and buyers Of potatoes. Finally
stockholders of the association applied
to Judge Nye for the appointment OF
a receiver for the whole busine ss.
j. e.. Arneson was appointed receiver
for the Red River Potato Growers as
ISOLATION, Of GAINESVILLE, and Carey
refused to turn over to the warehouse
or it's contents to him, contending that
the potatoes, except about 700 bushels
owned by Bernardy, were the property
Of farmers and shippers who had stored
them there and who held the storage
certificates. Carey and Bernardy con
tended that the Red River association
was never anything more than a track
shipping association. The association
people say the potatoes and the ware
house are a part of the assets of the
association. Carey and Bernardy were
arrested for contempt of court for fail
ing to urn owe the warehouse pota-
toes to the receiver. On Tuesday or
this week a quantity of potatoes were.
being removed from the warehouse ana
the sheriff again arrested them for
contempt. They: nave appealed to the
supreme court from the order Of the
district court appointing the receivers,
asserting that it means the taking OF
their individual property without due
process of law.
Meantime Bernardy has filed a petit
ton in the United States court here
in Fergus Falls, alleging that the REQ
River Potato Growers association owes
him a large sum of none and asking
that it be adjudged bankrupt.