The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-09-22
MORTON PAGE
HEADS EQUITY
AS TRUSTEE
Appointed by Referee Smith
After Strenuous Fight
Lasting Two Days
IGIVE $4,000 BOND
Referee Sustained Mr.. Lowell
= This Lead to Barring
of $50 Claimants

Fargo, Sept. 22.-MOrton Page,
!! pioneer Fargo business man, was
manned trustee for the bankrupt
Equity Cooperative Packing company
yesterday by Emerson II. Smith, ref
cree in bankruptcy. The bond was
filed at $4,000 to be increased at
any time i'll the future if necessary.
Yesterdays election closed two-day
Session for the defunct company.
The affairs of the packing company
have been in charge of Referee Smith
since the officers of the company
Tiled voluntary petition in bank
ruptcy in the federal court about a
month ago.
An attempt had been made to show
that an agreement between c. w.
Reichert, president of the Equity Co
operative Packing company and Bar
nett & Richardson, attorneys for nu-
merous holders OF certificates of in
debtedness, Ito control the election of
the trustees. Y. f. Lowell, counsel for
the First National bank at Cavalier,
questioned Mr.. Reichert in regard to
sending of about 700 letters to var
ious people, in an attempt to influ-
ence the election of the trustee"
Mr.. Page is at the head of the real
estate firm of Morton Page & Son
and is the owner of large farming
interests which he has actively man
aged for years. He stated last night
that it would be his purpose to adj
minister the trust in the best inter-
ests of all concerned.
Contest Develop
The first meeting of the creditors
early developed into contest for
the naming of the trustee. It was
generally understood that the Off
GERS and directors of the bankrupt
company wanted Herbert A. Hard of
Fargo named trustee. Attorney V. r.
Lowell, who appeared for 'he First
National bank Of Cavalier, in exam
lining President C. w. Reichert of
the company brought out that Pres
ident Reichert had sent out letters
with blank power Of attorney enclosed
to all, the holders Of certificates CT
Indebtedness against the company ur-
cling them to place their vote in the
hands of local law firm.
Admits Writing Letters
This admission by Mr.. Reichert
was made the basis for a strenuous
objection by Attorney Lowell against
allowing these claimants to vote on
the selection of trustee. Mr..
Lowell argued that trustee should
represent the creditors and be in a
position to act impartially for all
and not be selected by the bankrupt.
He declared that if the holders of
certificates of Indebtedness who were
acting at the suggestion of Mr.. Rel
ebert were allowed to vote the trustee
selected would virtually be elected by
the bankrupt.
The referee sustained the objec-
ton of Mr.. Lowell and these claim
ants-were barred from voting. There
were about 780 of such claims.
Towards the close of the arguments
Judge w. H. Barnett suggested that
the Northern Trust Company be
named trustee. The vote finally
,,showed that the creditors were lined
up in two factions and that the
other faction voted for the Dakota
Trust Company. AS neither side
could muster both a majority of
claimants and the largest total of
claims, the referee, under the law
< -,tames the trustee, Mr.. Smith named
Mr.. Page.
Books and Records Gone
During the examination of Mr..
heichert and his son, Harold Reich
ert, who has been associated with
his father in the management of
the affairs of the packing company,
it developed that some of the re-
cords of the company disappeared
the past summer during some of the
bankruptcy proceedings that were
started. This came to light when
Attorney Lowell wanted to see GER
tain check stubs and cancelled
vouchers. Harold declared that he
was unable to find these checks,
saying they had been kept in a box
in the office but. disappeared when
he was out of town for about IL
days.
Reichert Testifics
C. w. Reichert testified that the
company had made no payments in
cash since July 10 and that the
cash was kept in vaults so that
the creditors should not get hold
of it. Harold Reichert testified that
he had to make hurried trip to
Minneapolis in July to get certain
assets of the company out of reach
of the creditors. He referred to the
numerous levies made by creditors
on the company's property at that
time.
This is the fourth receiver APP
pointed for this company within a
ypa-. Fol- this year Judge A. 7.
Cole. appointed receiver who was
discharged short time after follow
ingFa conference between creditors
and the stockholders. Early this
summer Judge Cole again named a
!, receiver, this time John Martin, for
| mer Cass county treasurer. Judge M.
j. Englert Of Valley City dismissed
! this receivership. A few weeks later
I Judge Englert appointed Geo. S.
Brastrup of Kensal as receiver. When
this,was dismissed President .Raiehert
of the company filed voluntary pc
ton in the federal court in Fargo late
in July. # )
: & Debts Total $16e. 900
The company owns q packing
plant that cost close to $4,000, 900.
The debts Of the concern total about
100000. It has more than $500, 900
in notes outstanding, which were
placed in the hand Of a Minneapolis
collection agency for collection prior
tic the brief receivership Of Johu
Martin. So q
The Bank Of North Dakota holds
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