The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1919-04-02
CONSUMERS UNITED STORES CO,
WANTS HALFmLuON MORE But
HALL SAYS THERE'S NO CHANCE

Secretary Of State Can See No Pos
sbility of Big Bond Issue BY Cor
poration With But $1,000 Capital
Stock Paid In-Sudden Need for
Such Large Sum Not Explained
Certificate Holders to be Told About
Affairs of Concern at Meeting on
April 3.
The Consumers United Stores Co.,
with q capital of $4,000, of which, &C.
-cording to it's own statement, but ST.
900 has been issued, today filed with
the secretary of state notice that it
intends to issue 100000 worth Of
bonds.
The notice is signed by ]. ]. Hast
ing, J. w. Brinton and w G. johnson.
directors Of the Consumers United
Stores Co., and it is to the effect that:
1--WE, the undersigned, being the
directors Of the Consumers United
Stores Co., chairman and secretary,
respectively Of the special stockhold-
ers meeting of March 10, 1918, at
which a bond issue Of 100000 was
authorized, do hereby certify" etc.,
the certificate being to the effect that
all of the stockholders received a no
tice that on the thirteenth day OF
March, there would be a special stock
holders meeting Of the Consumers
United Stores Co., in Fargo for the
purpose Of voting upon the issuance
of 100000 bonds by the company for
the purpose of developing and extend
ing it's business. This notice was
signed by Hastings, Brinton and
johnson, as directors.
Stockholders Meeting.
Fred G. Miller, chairman of the spe-
cial stockholders meeting; w. G. John
son, secretary, and Fred G. Miller, w.
G. johnson and Spurgeon Odell, "be-
ing all Of the directors Of the Con-
-sumers' United Stores Co., further
certify:
"That the meeting was held at the
time and place specified in the notice;
that all Of the stockholders were pres.
.ent and voting in person, and that the
following resolution, chat the COM
pany by and through the president
and secretary issue $5000,000 in five
year six percent bonds in two series
of $25O,OOO each, said bonds to be Sc
cured by membership notes which are
to be deposited as collateral with the
Observation-Disclosures bank of Far
70, in the proportion Of i IL dollars
of face value of the notes to each dol
lar 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 from such
loans or sales be by the directors used
in financing the extension and devel-
opment Of the Consumers United
stores Co., system. Provided, that
ill moneys collected upon such col.
lateral notes, upon the deduction OF
collection expenses, shall be covered
into a sinking fund in the Scandina-
vian-American bank to pay the prln-
cipal and interest on said bonds was
moved and seconded, and upon a vote
bv ballot was unanimously adopted;
every share of stock was voted in ia
vor Of said resolution; and the issu'
.ance Of 100000 worth Of bonds. The
resolution was by the chairman DE.
.clared adopted-Done this goth day o.
March, 1919.
Can It Be Done?
The notice is being returned to the
Consumers United Stores Co., tol
three reasons: First, because it wa
not accompanied by the required IL
ine fee of So; second because Sec
-4543 Of the corporation laws Of NORTH
Dakota, compiled laws OF 1913, says
Of corporations, "Nor must they ere
:ate debts beyond the subscribed cap
ital stock; third, because Sec. 1859, Z
l.. 1918, provides that "At least twt
thirds Of the entire capital stock mus
be represented by the vote in favor 0:
the issuance Of bonds"
It is contended that inasmuch as
according to the company's own state
ment, published in this weeks Nortf
Dakota Leader, but $1,000 worth o.
stock has been issued, the bond issue
could not exceed this amount whlci
is $500, 900 less than the amount spec
flied in the notice. 1t is also hel;
that $1,000 worth of stock, being bu
one-tenth of the whole issue, the re
uuired two-thirds Of the capital stoc'
wa not represented at the stock
holdres' meeting which voted in ia
vor of the half million bond issue.
. Meeting To Be Held. J.,
Notice is given in this weeks Mort
Dakota Leader Of a meeting OF certl
fcate holders Of the stores compan!
at their stores April 3. The certlh
cate holders in the company have n
voting power or other interest In II
This notice states that "the Consum
ers' United Stores Co., holds approx
;mately 100000 worth OF armer
notes Of 500 apiece" John ). Hass
ings, late president Of the concern .s r.
Gently told the banking board, wnic
now has the Consumers Co., unoel ~
vestigation, that the company naa r.
.o,,rcos ~ 81 500. 1000 and quick asset