The New York herald., 1921-12-20
head OF the Great Western Securities
Comnany "a faH. 600 n war.

head OF the Great Western Securities
Company u $4,000 a year.
Tic inquiry conducted by the receivers
into the affairs os thu cooperative SO
ciety brought 10 light many instances
Of alleged criminal extravasance Of tho
society's funds. Harrison PARKER. chief
trustee. it Is alleged, spent 100000 OF
the society's money furtnerng his candi-
dscy as a candidate for Governor of
Illinois last year.
According to the receivers report the
Great Western Securities Company, fis-
cal agent FOR the Cooperative Society OF
America, has retained S5,666.417 as COM
mission for selling the society's certifi-
Gates and has retained s3,050.26S in
payments not yet completed, as its con-
tract with the society provides that II
shall retain payments on all certificates
until payments are finished.
Harrison Parker. N A. Hawkenson
and John Coe, trustees of the society.
have received $2,62t. .279. That sum-
with the borrowed $1.75s,47s totalsns
S3,73G.i72, has been invested In the pur-
chase CT control of twelve concerns. mono
OF which has paid any dividends sines
being purchased. Canneries. ITO chair
stores. factories. eu insurance company
a wholesale grocery, n bank and $4,000
600 office building are included in the
Investments.
The Cooperative Society, according tc
the report, was an outgrowth or the
National Society of Fruitvalers, an or
ganization founded for the community
development Of tract OF land ir
Michigan. The Fruitvalers' Society wa;
made into trust under trust agree
Tnent formed by Parker. November 20
1917. Parker. n. A. Hawkenson ard 4
c. Slack were made trustees and were
empowered 10 issue negotiable beneficial
certificates totaling s5.000,0o0, with G
par value of $50 each.
An involuntary petition in bankruptcy
was filed against the society in August
1918, and was dismissed in December ol
the same year. Just month later tht
society entered into O. contract with thf
Midwest Advertising Agency. owned by
Mrs. Parker. for the sale OF the Michigan
lard and the certificates. The Midwcs'
company undertook TO sell the Fruitvalt
certificates, and was 20 be paid $50, 900
Real estate installment contracts and
the society's Office furniture were as
signed to the company
The Cooperative Society Of Americs
came into being just month later
when Mrs. Parker conveyed to Harrison
Parker. N. A. Hawkenson and John Cot
tract of land near Muskegon, Mich.
and the trustees were authorized TO issue
10000 beneficial certificates totaline
$40. 900 900, with @ face value of $g each
| They we're also authorized to issue 500.
900 in bonds of $50 denomination. which
might be purchased by "Fruitvalers.
If payment were completed within 8
year one $50 F'rutvale certificate coult
be traded for three of the new s25 GER
! tificates.
The charges made in the report ar,
characterized as ''lies'' by Harrison
Parker. who issued the following state
ment tonight:
'I have read the report of the attor
neys for the receivers with great dea
of interest. 1t Is full of misstatements
| made not in the heat of cross examina
| tion but in cold type. If the Coopera
| tive Society of America could be KEEP
| in the clutches of the bankruptcy courts
| in the district of Illinois the lawyer
would get hundreds OF thousands O.
| dollars in fees.
II wonder what the bankruptc.
sharks think am here for? I wonder
| IL they think that after spending six
teen years OF my life in building. afte,
| having established successful busi
! ness / would turn it over to them Il
be destroyed without real fight?'
Mr.. Parker, prior to his connection
with the society, was advertising man
ager of the Chicago Tribune and later
publisher OF Mr.. Hearsts Chicago Even
ing American. He resigned to enter the
advertising agency business and sub
sequently devoted all his time to tn,
F'ruitvale project.