Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-03-17
CONSUMERS STORES
INRECElVER'S HANDS;
LEAGUE ENTERPRISE
Receiver: Named TO Protect
Property Of Stockholders
in the Consumers United
Stores Company y'-Anoth-
er Townley Scheme Follows
His Example in Bankruptcy

Fargo, Mar. 15..s Announcement
was made yesterday that W. G. John
SON has been appointed receiver Of
the Consumers. United Stores COM
pany, a Nonpartisan league corpora
ltion engaged in the mercantile busi-
ness.
Voluntary proceedings were insti-
tuted before Judge Moellering, Of
Minot. who has heretofore been IN
active supporter of the company.
Mr.. Johnson has been secretary
treasury of the company.
Statement
In reporting the receivership, the
Courier News states:
On petition of l.. L.. Griffith, Far
60 president, and Senator James
Wenstrom of Dover, Wells county,
vice president, George H. Moellring,
judge of the fifth judicial district,
Late on. Saturday in Minot issued an
order appointing w. G.. Johnson
temporary receiver of the .Consum-
ers United Stores company. The ac-t
tion was taken, Mr.. johnson said, in
order to protect the property Of the
stockholders of the company. The
present financial shortage has made
1t impossible 70 rthe company to col-j
lect money due from subscribers,
and receiver was asked in order
that the company's business may be
conserved until fall, when, it is hop
ed, if there is a good crop, the busi-
ness. may be resumed.
T. T1~n $40 II 4 Il 80 I, n
Consumers company are banks, III
which the company has borrowed
money on the notes of subscribers.
Mr.. Griffith's petition sets forth that
the company owes the Scandinavian
American bank approximately $780,.
900, the Peoples State bank Of
Grand Forks, $12, 900; the First Ma
)tional bank off,: Bismarck, a s 8 ,S0O;
the state ban k 81 Heerings 81 .250;
the State bank OF Oriska.i s2,250;
the state mill at Drake, S16,511, and
various other accounts, about $19,-
500
81 Stores and Creamery
1t is claimed that the 81 stores
and the Minot creamery aggregate
in capital stock, merchandise and
value Of property, ,$9S1,00O in as
sets, while total liabilities are put at
not over $500, 900, of which only
about half is; now due. But farm
ers have been hard hit in the sec-
tion III which most Of the companys
stores Ire located, so that out Of the
total su Inscriptions Of almost 81 ,O00,-
900 to the. capital stock of the COM
pany, less than $500. 900 has been
paid in cash. Upon farmers notes
given as security for: loans at var
ious banks, the company is unable
to make collections, because of the
hard times. A number of garnish-
ments have been sought, according
to Mr.. Griffith, among others one
for $5,955.48 by the Ransom County
Farmers bank of Lisbon, 'only a
small part Of which represents an
actual indebtedness on. meritorius
claim against the plaintiff" In or
der, therefore, to keep the business
from serious injury, a receiver was
asked. 4,
The action was brought in Minot
because it is in the fifth district that
more local stores are located than any
other. Judge Moellring set April
as the date on which creditors might
appear in answer. ,I3s
Organized in 1917
The Consumers United Stores
company was organized in 1917. It
was known as a 'Brinton promo
ticn, j. Wells Brinton having been
q leading spirit in pushing the work.
In the beginning the company was
not true cooperative, signers to
the capital stock merely purcllas-
ing the right to buy at the low pric-
es which it was intended to charge
purchasers who held these contracts.
About two years ago it became
necessary to take drastic action to
save the company from the disorder
ii which 1t: was found Mr.. Brinton
had involved it, H. "a. Paddock,
counsel for the company, virtually
took control \ the Headquarters were
moved to Fargo, and the company
became q true tco-o operative, tho only
after long fight with the secretary
Of state. 3 M ss III
:sa As3 reorganixed .S there was every