The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-01-21
ANTI-CASEY
STOCKHOLDERS
SCORE FIGURES
C. w. Reichert Declares Real;
Deficit of Equity Packing
Plant Over Million
CLAIMS FALSE STATEMENT
Declares Reports Were Padded
and That Promotion Ex-
penses Were Excessive
REFLECT DIRECTORS.

Fargo, Jan. 2l.-The present
management Of the Equity plant
won a cleancut victory just before
adjournment this afternoon when
all retiring directors were re-
elected and resolution passed au-
thorizng the issue of $5O0,O00 GER
tificates of Indebtedness to give
the concern working capital.
The certificates will be in the ma
ture Of promissory notes Of the
company and will not be backed
by other security than the conf
dence Of stockholders A call for
subscriptions was made and in a
few moments several thousand
dollars had been subscribed and
several hundred Of the stOckhOld-
ers were signing up for from 5000
to $500 on certificates OF indebt-
edness this afternoon.
Fargo, Jan. 2l.--C. w. Reichert, of
Darlington, Nonpartisan member Of
the North Dakota house, at an Equity
Packing plant meeting
held today in connection with the
Tri-State Grain Growers convention
charged that the audit report made
yesterday showing a deficit of $771,216
is between $25O,000 and 100000
less than the deficit actually is.
Reichert, who was denied the floor
ent the claims of stockholders COM
nittee which is opposed to P. M. Casey.
president.
Million Deficit.
81 believe that the report is between
$250,0O0 and 100000 in error and thi:;
bears out my charge Of what the pres
ident told me several weeks ago-that
there would be one million dollar
deficit" he said. ~a.
Taking a copy of the audit report
he went over the assets as listed and
declared that many of the current as
sets listed, such as certificates of de-
posit, could not be realized on at once.
He declared accounts receivable
should not be listed at the total figure
and that the financial conditions had
made it impossible to realize 100 per
cent on notes Of farmers as listed;
that railroad claims should not be car
ried at full amount of claims filed.
The opposition led by Reichert cir
culated thousands of printed state
ments comparing the 1919 and 1920
statements of the company which stat
ed in part: .'
Padding Statements.
"Our directors have custody of near
ly, $3,000,000 and have admitted that
their employees in most responsible
places have confessed to padding
statements and making false state
ments; have even paid dividends when
losses were accruing. Will anyone
doubt the right Of stockholders to
know more of this condition and es-
pecially when false statements, such
us the last one now submitted by the
Northwest Audit company
Showed Profit.
"A year ago the statement showed a
profit of $4,000. This year loss OF
$751; 900, difference of $780, to be
accounted for. What was padded and
where, that the president and board
could be so deceived? 49,.
If to this we were to add proper re-
serves to cover real estate, advertis
ing, inventory adjustments, bad ac
counts and notes receivable any debts
not on the books and proper re-
serve for depreciation we see where a
loss of more than $1,OO0,OOO has been
sustained,
Big Promotion.
as the organization expense 10, 90
or 30 per cent Of stock sales?
I'VE seek method whereby we can
effect permanent cure of our trou
bles.' -.
President Casey has proposed that
an additional $25O,OOO to be used as
working capitol be obtained and ex-
poets to outline his plan to obtain it
to the more than 1000 stockholders
attending today's session. A meeting
of the temporary North Dakota Farm
Federation, headed by U. l.. Burdick'
of Wiliston, is being held at the agri-
cultural college today to organize the
federation on permanent basis.
The Tri-State grain growers are
holding their final sessions today and
late this afternoon Charles P. Craig,
executive secretary of the Great
Lakes-St. Lawrence Tidewater associ-
alton will tell of the benefits of lake.
to-the-sea waterway to North Dakota
farmers. -'-..