Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-09-09
COURT APPOINTS RECEIVER TO
UNTANGlE AFFAIRS OF IOWA
MERCANTILE COMPANY.
MANY FARMERS AMONG
HOLDERS OF STOCK
Hundreds Invest in Mutual Mercantile
Business in Hope Of Large Gains and
May Lose Entire lnvestment-Com-
pany indebtedness Amounts to S65, 900
-Purehasers Ciamorins For Arrests.

Cedar Rapids, Sept. 9.-Swamped by
debts and Encouragement and with
and with apparently no head TO direct
its affairs, the Iowa Mercantile Com
pany of Cedar Rapids, was placed III
the hands Of receivers Thursday after
noon at Marion by the judges Of The
district court. X. T. Lamb, for thirty
FIVE years a merchant al DIN, was ap-
pointed receiver.
The Indebtedness of the company 5
said to amount to approximately 500
600. There are about 1900 stoCkhU!d-
ers in the company holding stock
which cost them from $50 10 $500. Il
is not likely that the stock on hand
will pay the Indebtedness, but even
IL il does there will be nothing lief;
for the stockholders. Many OF thoss
having an interest in the company are
persons who can mot afford 10 lose .
dollar.
Alieae Mismana cement.
The petition that the Iowa MercaD =
tile Company should go into the hands
OF the receivers was made by stock
holders of the company. This petition
alleges that the business has been
woefully mismanaged, that the capital
stock has been almost completely dis
sipated. that goods have been bought
on credit far IN excess OF what the
company could pay and in violation Of
the rules OF the corporations; that
money for stocks has been secured
under false pretenses; that WliGer
and a body Of directors have refused
to give the stockholders an accurate
statement Of the condition OF the COM
pany; and that the entire business has
been conducted for the benefit of =
few regardless of the stockholders.
How Debts Accumulated.
For some time it has been common
ly understood that the affairs Of the
Iowa Mercantile Company were on a
very shaky basis. President and Cen
eral Manager Tom P Wilder is said
to have reported that business was
fine; but debts continued to accumu-
late. Stories began TO come in from
farmers who had bought stock after
being shown plans of a packing plant
which the Iowa Mercantile Company
was about to erect IN Cedar Rapids. a
branch store was established in Mon
Gcello
On July 7. 1915 affairs had reached
such climax that Wilder rendered
his resignation. Debts at that time
amounted 10 SIS, 600 and creditors were
becoming anxious. The directors knew
that Il Wilder resigned the store must
close while the stock was !nvo!ced
Wilder stated that II he was left alone
he had notes enough to cover the in
debtedness. Failing to get any state
ment from Wilder as 10 the real con-
dition, Of the company and realizing
that there was no chance to bring
order out Of the chaos, four Of the
seven directors resigned. Their places
were filed by men who are said 70
have constituted board which ca1nc
and went at the beck and call OF
Wilder
Stock Purchasers Want Arrests.
Additional efforts were made 10 sell
stock and Browning and ale were
especially active in this work Few
OF the stockholders seemed to know
who they were. where they came from
or what they were trying TO do
That stock was being sold was very
evident from the cries from those who
had purchased Farmers who ha/
visions Of having a share IN we'll
paying store and a modern packing
plant awoke 70 the realization thai
they had invested money in a concerr
about ready 10 go into the hands !.
the receiver. Several complained :,
the county attorney with the hope II 4
information could be filed against tht
stock statesmen on the charge Of 90.
tanning money under false pretenses.
Thus far no definite action has beer