The Bismarck tribune., 1919-04-03
HALL vs. EQUITY
FEUD IS AIRED IN.
SUPREME !. COURT
Packing Plant Company En-.
deavors to Establish Rights
as Cooperative Concern
PAY INTO PARENT GOLFERS
Ten Percent Of Profits After
Surplus Is Accumulated Go
Into American Society

The difference between fee of IS
and a fee of 81 900 for the incorpora.
ton of q $3,0OO,000 concern was in
volved in the argument Of the CON
troversy between the Equity Cooper
ative Packing Co, of Fargo and Secre-
tary OF State Thomas Hall before the
supreme court OF North Dakota yes
terday. . IN ..-
TIE packing company, in which
farmers of North, Dakota have sub
scribed for almost million dollars
worth of shares at 500 per share,
claims that when 1t organized under
the laws of 1915 it believed it was
organizing as a cooperative concern,
in spite OF the fact that those laws
required, Is assOciators, while the
Equity company had but seven, and
despite the further fact that the max
imum capitalization provided by those
laws was $4,000, while the Equity
Incorporated for $1,000, GOO. q. .. y .
While President Patrick NJ. Casey
of the Equity Packing Co.. who is a
memoer of the state board of control.
and Secretary OF State Hall are both
good leaguers, political atmosphere
has been injected into the contrOv-
ersy in the comment in newspapers
which A. G.. Townley, president of
the league, edits. i Eo,h Mr.. Townley
and William Lemke, chairman of the
republican state central committee OF
North Dakota and one of the five di.
rectors OF the National Nonpartisan
league, were here for the hearing
Wednesday, III &sa
History Of Case.
The history of the case is: that the
Equity Cooperative Packing Co., orig
inally incorporated for $l,000,O00, OF
which practically all of the shares
have been sold, last fall voted to
amend it's articles of incorporation to
provide for an increase in capital to
$3,09O,000 The fee for filing such
amended articles under the ordinary
corporation laws bof North Dakota
would be $1,000 Under the laws re.
lating to the. incorporation of coopera-
tive associations, as amended in 1917,
the fee would be but So. The Equity
Co. rendered the fee of IS, holding
that it was a cooperative association
Secretary OF State Hall rejected the
Iitender, contendmg that the company
had organized under the general cor
poration laws of the state, and not
as cooperative enterprise. "N1i
The legislative assembly of 1917 en-
acted as curative measure an
amendment providing that any COM
pany which had heretofore attempt
ed to incorporated as cooperative
association, might take advantage Of
the cooperative statute by filing
amended articles of incorporation The
Equity Co. bases it's case upon this
amendment, contending that when it
originally incorporated it was with the
idea that it was coming under the
cooperative statues, and that it should
not be penalized now for the mis- AXE
it then made.
Robinson in Doubt.
During the hearing yesterday AS
sociate Justice James E. Robinson
frequently interrupted with questions
as to why cooperative association of
North Dakota farmers should pay ten
per cent of it's profits to the Ameri-
can Society of Equity. Such a pro-
vision is embodied in the articles of
incorporation of the association,
which DEGREES that after certain
surplus has been accumulated, sum
not to exceed 10 per cent shall be
apoprtioned to the American Society
Of Equity for educational and propa-
ganda purposes.
Judge s. l.. Nuchols, law partner
Of Attorney General William LANCER,
represented the packing company.
while w. II. Stutsman, also of Man
dan, former chairman of the state
railway commission, appeared for
Secretary of State Hal