The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-06-17
Davis FAVORS
R@ECEIVERSHIP
Commissioner Says Order In Friendly
Suit Will Save Grain Growers
Company.

Commissioner Chester C. Davis of
the state department OF agriculture
made a formal statement last night
on the appointment of a receiver for
the Montana Grain Growers.
Commissioner Davis is of the opin-
ion that the receivership will protect
the holders of storage tickets and 9th
er creditors of the corporation and
permit the organization of it's fl
nances, thereby keeping the owner
shin of % elevators in the hands of
farm owners.
As a protection to the holders of
storage tickets, Mr.. Davis said that
the assistance of the attorney general,
will at once call on the $4,000 surety
bond of the Grain growers to pay the
storage ticket owners.
Has Three Objects.
The statement of Mr.. Davis fol-
lows:
"The receivership of the Montana
jects: First, the application of the
ward meeting claims of holders of
outstanding tickets for stored grain,
and the general protection OF these
ticket holders and other creditors; sec
and, to permit reorganization OF the
finances of the corporation to insure
the retention of their line of % ele-
vators in the hands of the farm own
ers; and, third, the protection OF the
individual directors from the loss and
even ruin which hasty, hostile action
might have precipitated.
"The department Of agriculture act
ing with the attorney general, Will
Immediately call on the $4,000 surety
bond which the Montana Grain Grow
ers have filed with the state, and the
proceeds will be applied at once to
holders of storage tickets.
Protect Ticket Holders.
at is the first duty of the depart
ment of agriculture to act in the pro-
lection of holders of storage tickets,
and it was with that in view that the
department on June l had an auditor
placed in the office of the Montana
Grain Growers, and arranged for the
meeting of the directors of the corpor-
alton that was held today. In this in
tention to see every holder of storage
tickets receive every dollar for their
wheat, the directors and officers of
the corporation are in one hundred per
cent accord.
Approve of Receivership.
"This department, and the office of
the attorney general, have been at
work on this problem for some time,
and we are confident that the action
taken by the directors of the Montana
Grain Growers is the one best calcu-
lated to secure the objects outlined
above. Under the receivership, it will
be possible to meet all storage obi
cations, and under the plan of re-
organization upon which the Montana
Grain Growers are now at work, the
way should be clear for the operation
during the coming g%rain-moving sea-
son., of this farmer-owned, co-opera-
tive company.
Reorganization Plan.
"It was the Recommendation of the
meeting this afternoon in which the
directors of the Montana Grain Grow
ers were Joined by the executive COM
mittee of the Farmers Educational
and Cooperative union, that in this
liquidation of the Montana Grain
Growers and it's reorganization, the
stock interests of the present stock
holders should be transferred to the
re%organized company in exact ratio
to the value which the stock actually
possess under the receivership.
at is the belief of the department
of agriculture that, if this plan can
be carried out, grain growers in the
territory served by the elevators, who
are interested in seeing the %co-opera-
tive wheat marketing movement sue
coed, and these elevators retained I'M
der farmer control, will be glad of the
opportunity to support the reorgoni-
zation work.
"This reorganization of finances is
under chapter 1872 of the last session
laws, blouse Bill 49," by which farm
ers are empowered to sign up their
land only to the limit of five per cent
of the assessed valuation, as security
for a bond issue, the funds from which
are to be used for warehousing, hand
ling, and otherwise engaging in CO.
operative marketing"