Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-06-22
HAS
INTRODUCED
NOTHING YET
Excepting Empty Charges Aimed
at Linde Which Murphy
Resented.
M0t1oN TO DISMISS
PROMPTLY ovERRULED
Defense Is Ordered to Submit It's
Testimony; Be Introduced
Today.

Fargo. ". D., June 2l.-Special to
the Tribunc-The hearing Of the Equi.
ty Cooperative Exchange case, in
which Attorney General Linde alleges
insolvency, impairment OF capital
stock, illegal acts by officials and vio'
lation of charter, and asks the ap-
pointment Of a receiver and an jnjunc-
ton against the officers and annul-
ment Of the charter, was resumed
before Judge Pollock this morning,
after repeated adjournments during
the last month.
Attorney General Linde, assisted by
Assistant Attorney General Murphy
and Attorney Engerud, appeared for
the state. Attorneys Manasan OF Min
neapolis and Lemke Of Fargo were
augmented by Judge Mum OF st. Paul
for the defense,
Moves For Dismissal.
The same number of spectators
were present il contrast to the large
delegation here at the hearing last
month. Judge Mum. for the defense
moved for a dismissal Of the action
and if that was denied he wanted the
state to be compelled to elect on
which articles of chapter q Of the re-
vised code they wanted to try the
case. He contended there was a mis-
joinder that the articles were con
fusing and inconsistent and that the
case was improperly brought.
Motions OverruIed.
This was contested by the state and
the court adjourned the morning pro-
ceedings in order to give counsel on
both sides more time to cite author
tiles. This took up the greater part
of the afternoon and finally resulted
in the overruling OF the motions BY
the court, who contended that the
complaint was properly brought ana
ordered the defense to submit its tes-
timony.
During the arguments the court
stated that there We're several points
regarding the appointment Of re-
ceiver that were not quite clear. He
wanted to hear that counseFs views
as to when receiver could or could
not be appointed, and if receiver
could be appointed except on SPECIFIC
terms of the statutes. 1t was finally
decided that the insolvency matter
would be the issue as to the receiver
ship and other testimony would az
feet the injunction asked against the
officers of the Exchange.
The States Case.
There were some recriminations be-
tween counsel on the hearing and the
charge that the attorney general was
being used as tool by an outside
corporation was strongly resented by
Murphy. Murphy and Engerud con-
tended that the state had shown fraud
and Misrepresentation. that the Ex-
change was receiving money ana
property under false pretenses ana
ttht It, instead of furnishing the farm
ers a direct market, was merely add
ing the expense of another middle
man.
The defense denied these allega-
tions, contending that instead OF add
ing a middleman, it was selling d.
rect TO the COllSuIllclo dAu lCSCA'AAo
higher prices, which were denied by
the state.
Mum Makes Charges.
Judge Mum claimed that many am
davits filed by the state were wrong,
were secured through misapprehen-
sion and some Of the more important
ones had been corrected and there
was no insolvency, no fraud and no
Misrepresentation, that the capital
stock had been impaired only six or
eight per cent, that there was no
necessity for the appointment OF
receiver or for an Injunction against
the officers He stated that the de-
tense had 300 afidavits and 1000
pages Of dispositions.
At the suggestion Of the court, the
defense will tonight classify its vol
luminous testimony and list all afti-
davits and dispositions under groups
and subdivisions for introduction to-
to facilitate as much as pos.
sible the hearing in the case.
1Continued on Page Four.