The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1923-02-01
MORE TROUBLE IS IN
SIGHT FOR EQUITY
STOCKHOLDERS FILE SUIT IN
ST. PAUL ASKING FOR TEN
PORARY RECEIVER
FIGHT OF THE FACTIONS
ALLEGED THAT LARGE SUMS
WERE LOST IN GRAIN POOL
OF 1921
FIGHT OF THE FACTIONS

The following from the Minneapo-
lis journal of Wednesday evening
January 81 will be of interest to the
stockholders of the Equity Corpora
tive Exchange in this locality:
Suit to throw the Equity Ce-opera-
tive exchange of ST. Paul into receiv-
ership was started today in Ramsey
county district court.
Pending outcome of the suit, mo-
ton to put the Equity exchange into
temporary receivership at once is slat-
ed to be made Saturday before Judge
o. B. Lewis.
The suit for receivership is brought
by Fargo attorneys representing more
than 200 of the Ats farmers who
shipped grain into the Equity yet po9 of
about $4,000 and alleges gross mis-
management" and misuse of funds" .
The present. directors are made CO.
defendants with the Equity comany
They are Louis Noltimeir, president;
G. A. Thiel, secretary; ]. M. Anderson.
S.sB. Wood Magnus Johnson, farmer
labor candidate for governor; j G..
Leum, G. c. Bergh, o. H. Olson and
Nels Magnuson.
1.-The Equity exchange lis the : oldest
grain Co operative organization in the
northwest, having been started IL years
ago. 1t owns 80 country elevators and
an 100000 bushel terminal warehouse
in ST. Paul It has handled several
million bushels of grain in the last
few months.
Three factions fought for control at
the annual stockholders meeting re-
Gently. One represented j. M. Ander-
son, former president, who was retired
from office by the present board of di-
was the present regime. The third was
led by Usher L. Burdick, Fargo attor-
ney, on behalf Of farmers who declared
they had lost money in the pool. A
reconciliation committee of 10 finally
was appointed, with five members
named by the poolers and five by the
present directors.
1.-The directors acknowledged from
the start that there were owing about
500, 600 to the poolers. The committee
Element 1t returned report acknow-
lodging, according to the brief in the
receivership suit, an additional $4,000
in obligation to the poolers. The re-
meeting ended supposedly in peace
and harmony" according to the brief.
Afterwards, directors are alleged to
have repudiated the report.
1.-THE attorneys for the poolers with
drew an application for temporary re-
cevership in Cass county in North Da-
kota in the belief that the total
amount claimed to be due the poolers
had been allowed, T.. ". Sullivan, one
of the attorneys interested in the case
as representative of ]. M. Anderson
| said today. The present suit is in sub
stitution for that one. he said.
1.-The suit alleges that dummy cor
poration was formed by G. A. Thiel
present secretary of the exchange, and
B. j Logue, who was treasurer. to
buy grain from the Equity pool and
resell it. The complaint alleges that
| this dummy corporation made $500 in
profits which was not turned back to
the farmers.
"It is alleged that only part of the
sales money derived from the pooled
wheat was returned to farmers, and
j that part of it was used to pay ole
debts and to pay current expenses. II
also alleges that much of the grain
was sold from track although The
farmers were charged 15 La cents o
bushel for storage and handling. =
capital impairment of more than 500
900 is charged.
The suit seeks ousting Of all pres-
ent officials, to be followed by a re-
organization of the exchange from TIT
assets of the receivership, air. Sullivan
said.
THE defendants in the suit allege ii
!! is part of campaign to reseat }. M
Anderson in control, and declare tba'
he was manager of the exchange at tbs
time the pool was started and through.
out it's conduct, and that he is respon
sible for whatever took place.