The Hood River glacier. (Hood River, Or.) 1889-1933, 1916-09-28
ORCHARD CONCERN
FACES CIVIL PROBE

County Judge Stanton, president of
the Associated Fruit Growers. a cor
poration owning so acres of West Side
orchard land, which has been declared
insolvent by Corporation Commissioner
Schulderman, who has furnished Dis
trict Attorney Derby with a transcript
of the proceedings of the company that
he may begin an Investigation and pos.
sible legal proceedings for the protec-
tion of purchases of stock, was very
reluctant Saturday in discussing the
status Of the concern. The county Off.
cial, who according to reports faces a
probe from the federal grand jury
along with his associate. r. F. Mar
quis, secretary of the orchard concern,
was obviously worried over the pending
investigation. He denied any previous
knowledge of the action taken by the
corporation commissioner and was non-
committal in answering questions.
When asked to estimate the present
value of the so acres of land owned by
the concern, the capital stock of which
was placed at $4,000 at the time of
organization in the late fall of 1914,
Judge Stanton said that he did not feel
competent to set a value on single
acre of land in Hood River county at
the present time. Experts in local
realty, asked for an estimate on the
property, have placed maximum fig
ure of $50, 900. 1t is declared that the
land would not bring this at forced
sale.
At the time of the organization of
the Associated Fruit Growers. Judge
Stanton and wife and Mr.. Marquis
transferred their holdings to the con-
cern. Among the different parcels was
included a 10 acre tract formerly owned
by Judge Stanton and wife and against
which a mortgage for $1,000 in favor
of Ralph j. Jarvis existed. Proceed
ings for the foreclosure of this mort
gage have been begun by Mr.. Jarvis.
Judge Stanton admits that the company
stands good to lose the 10 acre tract.
He declines to give the valuation of the
10 acres at the time it was transferred
to the corporation.
As sales manager of the Associated
Fruit Growers, Judge Stanton says that
Mr.. Marquis had full charge Of the
sales of stock and the management of
the corporation.
"Have you ever received letters from
the stockholders expressing complaints
and displeasure with the way in which
their investments had been handled?"
Judge Stanton was asked.
To this it was stated that since Mr..
Marquis. W hose place of residence is now
given as Bismarck, N. D., left, he had
undertaken to straighten out the affairs
of the corporation; that he had written
to many purchasers of stock. asking
them for some expression as to the
conduct of the company.
81 had replies from just few" he
said.
"Did any of them ever threaten to
bring suit for recovery of their money!"
he was asked.
NO." was his reply.
Statements have been made here
that the sellers of the stock in the
orchard company failed to signify in
their representations that mortgages
against the parcels of land were in ex-
istence. Judge Stanton says he doesn't
know whether the statements are true
or not.
"Mr Marquis had with him at all
times, he told me. full property alb
stract of the company holdings. and l
supposed that purchases of stock we're
made with full information on the part
of buyers"
Judge Stanton, who formerly resided
with his family at Stromsberg, Nebr.,
was elected to succeed former county
Judge, Geo. K. Castner. at a recall
election held in 1918. The recall elec-
tion engendered a factional bitterness
throughout the county.
Judge Stanton's term Office extends
to January !. 1919.