Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1917-03-29
SMITH TESTIFIES
IN EQUITY GRAIN
EXCHANGE INQUIRY
Asserts Scalpers Are Only
Purchasers Of Grain From
Equity Company.
(By the Associated Press)


supporter of the Equity Cooperative
Grain Exchange, testifying today be-
fore the Teigen investigating COM
mittee, charged mismanagement on
the part of officers of the exchange,
declared that there had been misrep-
resentation as to it's financial affairs
and asserted that seldom do others
than scalpers purchase Equity grain.
"And these scalpers," the witness
testified, 'smust necessarily purchase
the grain below the market price,
Mr.. Smith, who is one of the edi-
tors of the Equity Question Book" ;"
published by the Cooperative Man
ager and Farmer, named R. J. John
son and Ole Holie particularly as
scalpers who have had large dealings
with the Equity.
Mr.. Diefenbach, their former sales
man, also touched 'em up for $17,-
900 by purchasing grain below the
market price and selling to the Min
neapolis Chamber of Commerce, he
declared. 4- .....ss-s
"It rarely happens that miller
is found purchasing grain in the
Equity's buying room," Mr.. Smith
continued. "Men buying grain there
as rule are scalpers. All these
scalpers, operating in St. Paul, buy
the grain enough below the market
price to ship it to Minneapolis and
still touch a profit
The witness asserted with great
emphasis that "bull'' was almost
an unknown factor at the Equity EX-
change.
eff there are any bulls at the
Equity, they are J. M. Anderson, pres
ident, and other officers of the Ex-
change" he said.
In support of some of the state
ments contained in the question
book" Mr.. Smith read correspond
ence from farmers and grain men
who heaped criticism on the Ex-
change.
He also produced evidence which
he declared proved beyond doubt
that it was possible for a salesman of
the Exchange to make Sc on every
car of grain he sells for the Ex-
change.
"a representative of the Abbey
Grain company, showed me a check
for 5000 made out to Diefenbach. I
asked him what that was for"
s'That's Just pin money for DEF
was told," Smith testified. "Dief-
enbach had been selling grain. to the
company" .a
The annual reports of the Equity
then were taken up and criticized by
witness, who declared that they were
incomplete and irregular.
"'ThG report presented at one meet
ing of stockholders covered only five
months" he continued. ''Why was
1t advisable to choose but five months
out Of the year to report upon?"
Mr.. Smith also took exception to
various items in the annual report
including $2,255 for kilograms, this
amount covering aperiod of only five
Mr.. Smith testified that the
Equity's. capitalization, funds had
been used from time to time on cur
rent expenses by officers of the Ex-
change.
"And so long as this Equity con-
tinues to take, in new members and
sell stock this condition can continue
to prevail he said
James Manahan arose and asked
to cross-examine the witness, but in
doing SO failed to address the chair.
"You will show your respect to-
the CHAIR" Mr.. Teigen rebuked.
But Mr.. Manahan went ahead with
his statement.
y The chairman forthwith ordered
the matter stricken from the record
and waived Manahan to his seat.
The latter again arose and with i'm
solemnity addressed the
chair and was as solemnly recog-
nized. 5-..' 5-;,5o .-,1sT -.s
It was the first time the committee
had worked In and out Of q snarl
without an exchange Of strong words.
lts Mr.. Manahan asked permission to
cross examine the Witness. 81
j 81 will not submit to cross-exam-
lnation by yoiu.' = promptly stated.
Smith.
When yous refused the committee
the rightsstos cross-examine thu nc
who examined the Equity
books. you forfeited your right to
cross-examins witnesses. Is said Mr.