Great Falls daily tribune., 1920-01-09
FARMERS SPLIT
MEANS SLAW SUIT
Equity Will Try to Undo Acts
of Faction That Ousted Them
From Meeting.

Legal processes will be, initiated to
set aside business transacted by the
Montana Grain Growers at their meet
ing in Great Falls Wednesday after
representatives of the Montana union
of the Society Of Equity had been
elected and to determine the exact
financial status of the Grain Growers
organization, according to j. NJ. Ander-
son, president Of the Equity Co
operators Exchange of ST.. Paul. and
W. NJ. Burlingame. state president OF
men demanded the privilege Of partici-
pating in the meeting by virtue Of
proxies. but the Grain Growers held
that the proxies were without force.
Mr.. Anderson and Mr.. Burlingame
declared that recognition Of their
proxies was withheld because of a
change made in the bylaws Monday
evening by the Grain Growers directors.
They claim that under the state law the
proxies were bound to be recognized
and that such proceedings as occurred
after the Equity men were thrown out
have no legal status.
Finances Cause Trouble.
The Equity men were present, Mr..
Anderson and Mr.. Burlingame said. at
the request of some people who hoid
stock in the Grain Growers and who
asked that the financial condition Of
the Growers be examined into at the
meeting The trouble had its origin, they
general manager for the Growers. sign
ed an affidavit, on May 81, 1919. in
which it was said that A. J. Walrath.
president of the Growers. insisted that
the financial statement of the company
be made to show profit. whereas the
concern had actually operated at
loss. The statement was based on an
audit made by the Wilson Harley Clark
company of this city, Moore said. He
resigned after making the affidavit.
Tuesday the Equity men were present
at the meeting with Fletcher Maddox,
counsel. and asked for voice in the
meeting.
Proxies Held Not Valid.
A large number Of persons held
proxies from actual stockholders and
claimed the right to participate. Mr.,
Maddox explaining to the assembly that
under the state law corporation can
not by its by laws prohibit stockholders
from designating any person otherwise
legally qualified to act as their proxy
After completing a resume of the legal
aspects of the situation, Mr.. Maddox
asked President Walrath to rule, which
he did, but to the effect that the proxies
would not be recognized. and saying that
the proxy holders could have recourse
to the courts if they were SO minded.
The proxy holders were requested to
withdraw. and did so. Mr.. Maddox states
IF there was an officer present.
said he "his visibility was extremely
low and his services were not required
A plain clothes officer was present.
however. precaution taken by the
Grain Growers.
Mr.. Burlingame said that Thursday
afternoon the men who were elected
from the meeting organized for the
purpose of taking such legal action as
NAV be necessary to cancel the proceed
ings Of the Growers meeting and TO
compel the issuance of a correct fin
ancial statement. The statement now
issued by the Growers shows profit
of So. 900. while the correct audit in
dicates loss of $4,000. Mr.. Burlin-
game said
Formerly Equity Business.
Assets taken over by the Growers
were originally those of the grain
handling branch Of the Equity, accord
ing to Mr.. Burlingame and Mr.. Ander-
SON. Mr.. Walrath obtained control of
the company. they continued, changed
the name Of the company and has since
operated under the name Of the Montana
Grain Growers. the combination or
occurrences accounting for the interest
of the Equity in the business of the
Growers.