Camas Prairie chronicle. [volume] (Cottonwood, Idaho) 1901-1917, 1915-04-16
Trading Company in Trouble

Inc Northwest Trading Com
pany, a cooperative mail order
house in Spokane, which has been
doing business in this section and
also has some stockholders here
abouts, has been receiving con-
siderable notoriety in the Spokane
newspapers of late as a result of
an application filed by some of
the stockholders that a receiver
be appointed for the concern.
Concerning this company, and
the methods of associated COM
oanies. the New West Trade, the
Spokane trade paper has this to
say:
Retailers throughout the Inland
Empire are naturally interested
in the recent developments in
connection with the Northwest
General Trading Co., the Spokane
cooperative mail order house.
E. L. Hoisington and twenty
other stockholders of the COM
pany filed petition in the supe-
rlor court Saturday asking that a
receiver be appointed, alleging
that Manager Gale Smith had
contracted heavy debts and ex-
tended credit in excess of avail
able cash.
1t is alleged the company has
lost something like $50, Gee dur
ing the last three years, which
was made up by stock sales of
more than 100000; that Mr..
Smith and other officers allowed
themselves commissions for SELL
ing stock in violation of the ar
ticles of incorporation; that Man.
ager Smith has also violated the
articles by extending credit to
the extent of $14, 1853 and that
he owes $1082. 1t is further de-
clared there is a discrepancy of
nearly $3.50 between the a.
mount which should have been
realized on sales of stock and
what is actually shown by the
books. 1t is also alleged that J.
H. Taylor, an organizer for the
farmers union, and ]. C. Law
renee, a member, have been plac-
ed on the payroll to the tune of
$35 and $50 a week, respectively,
by Manager Smith, without au-
thority, not being connected with
the business in such manner as
to earn salaries.
Further interesting develop
ments may be expected soon. AS
yet Mr.. Smith and his associates
have made no detailed replies to
the charges made against them.
The March number of the
Washington Farmer throws some
new light on the manipulations
of the Olympic Trading & Supply
Co. of Seattle, which was organ
lied by Gale Smith along the
same lines as the Northwest
Trading Co., and of which he is
vice president and reputed to be
the power behind the throne. "
The Farmer says it sent a rep
resentative to the office of the
Olympic company, who talked
with the president, secretary and
manager. all of whom were pres
ent at the time, the officers ex-
planning that the company now
has about 4,700 members and
that the capitalization is $500, 900,
par value of the stock being 500.
This and subsequent efforts to
secure accurate detailed informa-
ton were largely unsuccessful,
but Secretary Fowler and Presi-
dent Knudson both admitted ac-
cording to the Farmer, the exist
ence of a private contract by
which Mr.. Knudson receives rs
per cent of all sales of stock, al
though the concern proports to
be purely cooperative and on
page 18 of the booklet circulated
to attract new members appears
the following: 1.-The officers and
employees will draw reasonable
salaries and will not otherwise
profit one cent from the business.
4 There is no promoter
stook honus or graft of anv