Golden Valley chronicle. (Beach, Billings County, N.D.) 1905-1916, 1915-04-30
Brings Suit
Against Coop
Charges Violation of Rights and
Asks that Charter be Annul-
ed. George Lotus Replies
to Allegations.

Fargo. N. D., April 28.-|
Charging fraudulent transactionsi
and insolvency that capital stock
has been wiped out. that earnings
have been misused and false re-
ports of sales made to shippers
in North Dakota, Attorney Cen
eral Linde appeared before Judge
Pollock Friday afternoon asking
COR an order to show cause why
a receiver should not be appoint
ed for the Equity Cooperative
Exchange. its charter annulled,
and that the officers be enjoined
from soliciting stock subscriptions
and consignments of grain in
North Dakota pending this suit.
May l8 was the date set for the
hearing before Judge Pollock in
the Third judicial district court.
Sold at Less Than Market Price.
Charges and allegations in the
complaint are supported by up
wards of 100 ahdavits filed in
connection with the suit at the
office of the clerk of court of Cass
county. Among the allegations
are that the corporation is insolv-
ent and that the Equity Co-opera-
tive Exchange has sold more than
a major portion of the grain it
handled at less than market quo
tations; that employees of the Ed
uity Cooperative Exchange sold
for export and turned the grain
over to their own companies at an
advance, making large prohts,sev-
eral making $500 month. Flax
in one case was bought at $l.50
and sold at $|.54, paying less
than the market and getting regu-
lar market r3ic-.
Grand Jury May Indict. .
When interviewed Attorney
General Linde stated that pro-
ceedines are likely to be instituted
the federal court and that the
grand jury will have it's attention
called with the possibility of in.
dictment.
The attorney general stated
that he has in his possession sun
dry information relative to trans
actions and practices of defend
dants an dintends to cover then
Just as soon as practicable.
The attorney general arrived
in Fargo from St. Paul afte,
spending the fore part of the
week getting amdavits which
would substantiate his asking the
court for a receiver.
Officers of the Exchange.
The officers of the Equity Co.
operative Exchange. who are ask
ed to be removed for misconduct
/ of affairs of the corporation are
]. NJ. Anderson, president; Mag
nus Johnson. vice president; c.
A. Thiel, secretary and treasurer
and C. S. Lotus, sales manager
Most of the men are located ir
St. Paul.
Part of Hughes Affidavit.
E. S. Hughes. assistant secre
tary of the chamber of commerce
of MINNEAPOLIS. in a sworn aft
davit on file with the clerk o.
court says in part that each o1
said mmbers of chamber of com
merce stated to afiant that ir
each instance when so purchasing
said cars from the Equity o-opera'
tive Exchange they purchased al
a price sufficiently below the cur.
rent market value of snch grair
so as to net them a profit at least
equal to or more than the regu.
ular commission charged by the
commission merchants on the
floor of the chamber of com.
merce.
THAT said all commission
merchants whose names appear
IN said lists were members of the
Minneapolis chamber of comerce
at times shown in said list. That
in the transaction shown in said
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