The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-02-07
MILLING COMPANY
HAS Big DEFICIT

Northwood, N. D., Feb. 7.-Culmin-
ating in Involuntary bankruptcy pro-
ceedings brought against two mem
bers of the board of directors by the
John Miller Commission company OF
Duluth, the cooperative association
known as the Northwood Mill and
Light company, faces q serious con-
dition which may ultimately result in
the disorganization of the concern,
according to facts which have been
| brought to light.
During the period Of operation of
the flour mill and elevator, a little
over four years. a deficit Of approx
mately $4,000 resulted. This amount
was furnished by the John Miller
Commission company to further the
interests Of the Northwood associa-
| ton and it is to recover this amount
that efforts are now being made in
federal court to force DR.. o. T. Peter
son Of this city and Samuel Lowe,
Northwood postmaster, into bank
ruptcy.
Organized. Four Years.
The association was organized a
| little over four years ago by a number
Of business men and farmers, about
40 in all, who incorporated with $780,
900 capitalization. The John Miller
Commission company of Duluth Of
fered further financial aid to carry on
a general elevator business and, &C
| cording to the claims made in the
bankruptcy proceedings, a guarantee
Of payment was signed by certain re-
sponsible business men, among whom,
it is alleged, were DIR. Peterson and
Postmaster Lowe.
When the company was organized
401 shares at $50 each were sold. A
board of directors comprised of five
members of the association were
al h. ArSGf ne
| Grafton o. K. Myran of this city was
named manager, but not placed under
bond.
Unable to Cope.
| Inability to cope with the problems
in buying and selling grain, together
with the failure to keep accurate rec
ords, are believed to be responsible
for the heavy financial losses. e. K.
| Spoonheim, stakeholder, is believed to
be the heaviest loser and it is claimed
that his interests aggregated $500.
Otto Rastedious of Grand Forks, who
was employed as head miller. Is also
a heavy loser and claims that he had
invested in the concern $500.
| Caused Probe.
Rastedious, it is claimed, was in
strumental in bringing about the in
vestigation last spring, when the con-
dition OF the concern was first real
lied. The mill ceased operations in
Il
June. . ~ .
The present members of the board
Of directors are e. X. Spoonheim,
chairman; Sam Lowe, postmaster;
DR.. o. T. Peterson, Narve Narveson,
prominent farmer and Peter Glasrud,
mayor of Norwood.
The defendants in the bankruptcy
action are represented by Attorney z.
o. Haraldson of Lansford, Murphy &
! Toner, and Bangs, Hamilton & Bangs
4 of Grand Forks. The defense denies
signing the guarantee, supposed to be
i held by the commission company, de-
MES individual insolvency and will
maintain that the debt was gambl-
| ing one, for which the board of di-
| rectors are not liable.
1 Non assessabIs Stock.
The stock held by the members of
the association is worcestershire and
as a result, eliminates all others not
associated with the guarantee from
settlement of the deficit. The only
i loss sustained by the members will
4 be the amount of their investment,
providing the organization is solvent.
The case will be brought up in fed
eral court in Fargo, but as yet no def
mite date has been set.
Colds Cause Headache and Grip.
| LAXATIVE BROMO QUININE re-
| moves cause. There is only one
"Bromo Quinine." e. w. Groves
| .-..-A.... -. 49, 0gn ASryk