The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-16
GRAIN INCOME
FROM POOL
IS DIVERTED
Capital Stock Is Impaired by
Management to Extent
of $75O,OO0
SIO1,916.9S DUE FARMERS
Many Elevators Conducted at
Loss Should be Closed
Says Committee Report

Says Committee Report
GRAIN GROWERS TO MEET
Fargo, Jan. 16.-Farmers from
all parts of the Northwest are
expected in Fargo tomorrow to
attend the annual convention of
the Tri-State and Grain Growers
meeting and other agricultural
associations holding MEETINGS
here.
Many important questions per.
tanning to agriculture will be
discussed during the convention
by men who can discuss them
from national and world wide
view point. Included among these
men is H. c. Taylor, chief of the
department of the agricultural
economies department at the
University Of Wisconsin and
Dean Wilson, a former director
of the extension department at
the Minnesota farm school, it was
announced today by officials.
The railroads have granted a
special fare of one and one-half.
to all points in Minnesota and
North and South Dakotas.
Fargo, Jan. 1e.-E:recrors of the
Equity Cooperative Exchange of St.
Paul in their annual report stock
holders in annual meeting here SHOW
capital stock impairment of three
quarters Of million dollars. The
report is signed by all members of
the board except Frank B. Wood.
The directors charge that money
derived from the sale of grain that
was pooled by farmers in the So
called Equity pool" in 1921 was di-
verted to the business of the Equity
Cooperative Exchange.
p ven today, the directors said OF
the $5c3, ,295.47 worth of grain that
the corporation are declared by the
board to be located in territory that
is not essentially grain producing
and they are operated at loss and
should be sold or leased, the boaro
advises in explaining the fact that
losses aggregating $3sS,167.47 were
incurred by local elevators.
Charge OF 100000.
Declaring that financial statement
submitted to the directors a year
ago disclosed a surplus and reserve
of $124 ,4444.30 the directors say that
a changed system of bookkeeping
and accounting has been responsible
for charging off approximately $780,
600 Of items that were carried as as
sets,
Included in this sum the direc-
tors declare was the loss sustained
in the local elevators. Its'was de-
clared as an asset on the theory that
the parent corporation at some fu-
ture time might be able to recoup
its losses through profits by such
local units.
While insisting that the venture
in establishing a large stock selling
agency at South St. Paul and Chi
cago was effective in disclosing that
livestock could be sold on cooper
ative basis the directors declared the
of such selling agency
at South St. Paul was extravagant.
The annual meeting of the stock
holders of the Equity Cooperative
Packing Plant will be held here to-
night. The financial condition of the
company will be aired at this time, it
was said. According to stories from
the two sides the conditions are
said to be as follows:
The company lost nearly $1,500, 900
under the old board of directors
which was in power when the plant
opened in 1918 until Jan. 1922. Tie
company owed nearly s153, 900 in Jan.
10, 1922.
The current debt of the company
is said to be over $3.50, 900. with bills
continually bobbing up, tending to
show that the,report of year ago
did not contain all of the obliga-
tions. At least $4,000 of the $780,
600 in notes receivable listed as as
sets, are valueless accoring to Usher
L. Burdick, one of the directors and
counsel for the company.
Mr.. Burdick continues that the as.
sets of the company have shrunk al
most 100000.
With the present situation, the
board of directors met last night and
this morning in executive session tc
discuss plans to rehabilitate the
company and open the plant. None
Of the directors would say what the
plans were.