Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1921-04-14
MK-up In Consumers Stores Affairs
Receivership Move Develops Scrap Which Ends
With 0usting Of Old Manager
From RecsiveIship

Developments have been coming
thick and fast in the bankruptcy pro-
ceedings of the Consumers Stores Co.
Recently the stores company went into
voluntary bankruptcy in order that w.
G. johnson in charge, of the concern,
could be made receiver. However,
trouble developed from an unexpected
source. A number Of stores had
their local directors present at the
hearing at Minot Monday, and pro-
tested strongly against the appoint
ment of Johnson as receiver by Judge
Moellring. AS result, C. W.
Reichert, of Darlington, was appoint
ed instead.
The appointment of Reichert indi-
Gates that the Consumers Stores af-
fairs have gotten beyond the control
of Townley and Lemke, and johnson,
their agent. Reichert represents far
mers who are frankly hostile to the
past management of the stores. The
hearing at Minot developed some in
side history of this gigantic money
swindle that was put across by Town
ley and Brinton in their palmy days,
when both had their feet in the trough.
Reichert is the man who led the
fight at Fargo against P. M Casey,
when the mismanagement and man.
moth losses sustained by the Equity
Packing Plant were disclosed. At
that time, Reichert failed to oust
Casey from control. Reichert is also
a member Of the legislature elected by
the league.
Although many of the stores
throughout the state took part in the
fight on Johnson's appointment as re-
ceiver, Rep. Roy Yeater, director Of
the Hazelton store, made no fight on
the appointment. The Record UNDER
stands that several of the chief back
ers of the store at Hazelton have been
contributing funds from time to time
to buy little jags of necessary supplies
to keep the store going.
The Consumers Stores Co. was one
of the leagues first ventures in high
finance outside of the membership
campaign. It is said more than a
million dollars was collected, and huge
organic Alton commissions paid. For
instance, at Hazelton the farmers put
five times as much money into the
store as they got in stock and equip
ment for the store. Later, they
gAt various farmers to give accommo-
dation notes to help them out finan-
cially. Also, they borrowed money
from the Bank of Hazelton, and finally
a. few of those already stuck on the
venture pooled little bunch of funds
to get necessities for the stock Of
goods from time to time.
The other store in Emmons county
was at Strasburg. That store proved
a frost from the first. It was over
the financial affairs Of this store that
E. "A. Schuck and the Fischers had
their troubles, resulting in the loss of
a bunch of teeth for Schuck. Schuck,
the Record understands, holds the
same position insthe Strasburg con-
cern that Yeater does in the Hazelton
store. The strasburg store is closed.
Following is q report Of some of the
developments at the Minot hearing:
3. = y
Getting From Under
An intimaticn that stores had been
turned over to farmers who had
furnished the company with accom-
mediation notes or cash few days
before the receivership proceedings
were begun permitting some of those
farmers who have been the backbone
of the Nonpartisan league to get
out from under, developed when Hal
vor Z. Halverson, Of Minot, repre-
senting the State Bank of Oriska,
q creditor, asked the court if the
turning over Of the stores to farmers
would not reduce the assets of the
company.
G. r. Peterson, Of Cando, wanted
to know if the receivership proceed
ings would in any way affect the
Bisbee store, which was turned over
to him and other Towner county far
mers a few days before the receiver
ship petition was filed.
Peterson and 13 other Towner
county farmers were given the Bis
bee store in yment Of $1,000 ad-
Svanced 10 tlsp!npany. Peterson
endorsed the g 3 farmers notes
and sta,ds s1 for the entire amount
il the othsl ptss are not paid. he
said. An inventory Of the Bisbee
store revealed its value to be approx
imately $1,000. Peterson said, but he