The Bismarck tribune., 1919-03-29

The notice Is signed by J. J. Hast
ings, i. w. Brinton and W. &. John
son, directors OF the Consumers
United Stores Co." and 1t is to thc et
fect that: "We. the undersigned. be
Ing the directors of the Consumers
United Stores Co., chairman and sec.
retary, respectively OF the special
stockholders meeting OF March H.
1919, at which 4 bond issue of 100000
was authorized. do hereby certify,
etc. tho certificate being to the et-
feet that all OF the stockholders re-
ceived Il notice that on the thirdeenth
day OF March there would be Spe-
cial stockholders meeting Of the Con
sumsrs' United Stores Co., in Fargo
for the purpose of voting upon the
issuance OF 100000 Of bonds by the
company for the purpose of devlop'
ing and extending its business. This
notice was signed by Hastings, Brin-
ton and Johnson. rs directors.
Stockholders Meeting.
Fred G. Miller, chairman OF the spe'
cial stockholders meeting; w. G.
Johnson. secretary, and Fred G. Mil
lers W. G. Johnson and Spurgeon
, Odell. "being oil OF the directors OF
the Consumers United Stores Co..
further certify: -r. --
.e"That the meeting was held at the
time aud place specified in the notice;
that all Of the stockholders were
present and voting in person, and
that the following resolution. that
the company by and through the pres.
ident and secretary issue $5oo,0oo in
tiye-year six per cent bonds in two
series OF $sa0,000 each. said bonds 10
be secured by membership notes,
which are to be deposited as coliater-
Al with the Scandinavian-American
bank OF Fargo, in the proportion OF
l l-3 dollars OF face value OF the
notes to each dollar Of face value OF
the bonds, and that the directors OF
the company sell said bonds or use the
same in making loans and that the
money derived from such loans or
sales be by the directors used in
financing tho extension and develop
ment OF the Consumers United Stores
Co, system. Provided. that all
moneys collected upon such collateral
notes. upon the deduction OF collection
expenses. shall be covred into sink
inE fund in the Scandinavian Ameri.
can bank to pay the principal and in
,erest on said bonds was moved and
seconded. and upon a vote by ballot
was unanimously adopted: every
share OF stock was voted IN favor OF
said resolution. .and the Issuance OF
$S0o0A0 worth sof honds. The resolu.
ton was by the chairman declared
adopted d--none this 10th day OF
N>h
Can Il Be Done.
The notice is being returned 10 the
Consumers United Stores Co. FOX
three reasons; First, because i, was
not accompanied by the required iii
Ing fee OF SS; second. because Sec
45iS OF the corporation laws Of North
Dakota, compiled laws Of 1918, saws
Of corporations. Nor must they ere,
ate debts beyond the subscribed cap
ital stock" third. because Sec, 1863,
c. l., 1918. provides that Al least two
thirds Of the ntire capital stock mus,
be represented by the vote IN favor Of
the issuance OF bonds"
II is contended that inasmuch as
according TO the company s'own state
ment. published in this weeks North
Dakota Leader, hut $1,000 worth OF
stock has been issued, the bond is.
sue could not exceed this amount,
which Is S4aa, ,oaA less than the amount
specified in the notice, II is also
held that $1,000 worth Of stock, be
ing but oue-tenth OF the whole issue
the required two-thiris Of the capital
stock was not represented al the
stockholders meeting which voted in
favor Of the half>million bond issue.
Meeting To ee Held.
Notice is given in this weeks North
Dakota Leader OF a meeting Of cer,iti
cate holders.of the stores company Al
their stores April 5, The certificate
holders are not shareholders in the
company and have no voting power o,
other interest in II. This notice states
that the, Consumers United Stores
Co. holds Approximately $Soe,est
worth OF farmers notes Of SiHt
Apiece John J. Hastings. late presi
dent Of the concern. recently told ths
banking hoard. which now has ths
Consumers Co. under Investigation
that the company had resources u'
91.SG0O and quick assets of Si.ase,
coo. Whether iae proposed bond is
sue has any connection with the Ger
tificate holders melting calld for Ap
I'll , or the Investigation now pend
ing before the blue sky commission
whose ediets the company has TO date
ignored, cannot be stated,