Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-06-10
PROTECT|0N0F
FARMER AIM Of
COMMISSIONER
Involved Situation Of
Elevator Firm First
Task of New Chief.
Liquid Assets Will Be
Applied to Meet Stor-
age Tickets Issued.
BY WARREN w. MOSES.
Staff CORES p0ndent.

Staff Correspondent.
Helena, June Court action Of
Tuesday which resulted in tie throw
ing of the affairs of the Montana
Grain Growers into q receivership was
taken at the insistence of the state
department of agriculture, acting in
conjunction with the office OF the at
torney general, the state acting for
the protection Of the interests of farm
ers who held storage tickets for grain
turned over to the Montana Grain
Growers, which the company was un-
able to redeem.
The business of the Montana Grain
Growers was established in the spring
of 1918 as the Montana Equity Eleva-
tor Co., by men who had been active
in the affairs of the American Society
of Equity, but it withdrew from the
Equity the following winter, the stock
holders changing it's name to that of
the Montana GRAIN Growers. .
Recover From BIG Sandy.
J. G. Critics, named receiver. be-
came manager of the Montana Grain
Growers late last fall, after the losses
from which the corporation is now suf-
fering had been incurred. Mr.. Critics
was formerly located at Big Sandy,
where he managed the Farmers Co
operative Elevator Co. in 1917.
He went from Big Sanday to St.
Paul in June, 1918, to open an office
of the Montana Grain Growers as
eastern manager, returning to Montana
last October as general manager, at
which time the headquarters were re-
moved from Great Falls to Helena.
His appointment as receiver was by
common consent of all interested.
Davis Chief Problem.
1t is said at the capital that the sit
uation in which the Montana Grain
Growers had become involved has been
the chief problem which the reorgan-
lied department of agriculture found
awaiting it when it took office. Com
missioner Davis and John M. Davis,
chief Of the division of grain stand
ards and marketing. have been devot-
ing more time to this elevator condi-
tion than to any other branch of the
reorganization work. Since the mid
die Of May, at which time complaints
began to come in that holders of slor-
age tickets we're unable to secure their
wheat or their money from the eleva-
tor points Of the Montana Grain Grow
ers. the department of agriculture has
oeen at work On a plan which would
protect holders Of storage, and return
to them at the earliest possible mo-
ment every dollar coming to them. In
this effort it has been Joined BY the
office of the attorney general. and the
plan arrived at is substantially that
presented to the management of the
Montana Grain Growers on Friday.
June 3.
Books Audited.
In order to determine the nature of
the assets, the amount of storage lia.
bllity, and the general condition of the
company, the department of agricul-
ture placed John H. Clark, an auditor.
in the office of the Montana Grain
Growers, at once notifying the COM
pany that it desired meeting of the
board OF directors at the soonest legal
date. This meeting was held on Tues
day, June Z, at which time the situation
was presented to the directors, and the
decision reached to ask for receiver
ship. On Wednesday the directors met
with Commissioner Davis, the assistant
commissioner, John Davis, and Charles
+. Cotter, representing the office of
the attorney general. This conference
continued throughout the afternoon.
and while 1t was under way Attorney
d.. M. Stewart representing the individ-
tal directors, and Attorney John G.
Brown, representing the defendant COM
pany, appeared in the district court |
with the petition for receivership.
$4,000 Surety Sought.
Suit to collect the $4,000 bond in |
the Lion Bonding & Surety Co., Of |
Nebraska. was started Wednesday by |
joint action of the attorney general /
and the commissioner of agriculture. /
This bond, which was accepted a year /
ago and expires the end of June, is in
company which is having financial |
difficulties of its own, but it is rein /
sured in stable companies, and the
state departments concerned are salts
fled that they will be able to collect it.
Proceeds from the bond will be ap-
piled to satisfy outstanding storage
claims.
Commissioner Davis Wednesday re-
viewed the adverse conditions that
have attended the Montana Grain
Growers since their formation. The
cause of the present condition, from
which all concerned believe the cor
poration will emerge in shape to han
die grain this fall, is described by
the commissioner rs threefold: Three
years of short crop and the succeeding
financial stringency, which made it i'm
possible for some of the farmer stock
holders to pay their subscription notes:
q bitter fight waged against the COM
pany BY the American Society of Euui
ty, which impaired the company's cred
CONTINUED on raxe rwo !, ts u