The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-09-19
They Can Wreck 1t

And they have the power to wreck
thes new company.
As purely selfish men, what viii
they do? And il they wreck X,
viii they have a trust formed for
/ themselves?
They have taken the Class B pro.
ferred stock for $4,000 coo in cash
which the Grain Marketing Com
pany needed for working capital.
Until this is repaid, their properties
/ are merely leased 70 the Grain Mar
keting Company. The time Of pay
:nent is one year. II the $4,000, 600
are not paid at the end Of a year,
they may call a halt. liquidate IN"
Grain Marketing Company, and take
their properties back.
When this $4,000. 900 is paid, how
ever, the properties will be decided
over to the Grain Marketing Com
pany. A real trust will be formed,
but it will be legal under the new
cooperative laws. for 1t will belong
20 the members Of the Grain Market
ing Company-farmers and farm or
CARNATIONS. What will happen then
Of the farmers company is wrecked
or goes broke?
The legal title Of the huge prop
critics will be in the Grain Market
ing COMPANY. but the value Of It
will be represented by the Class B
stock owned by the old interests.
The farmers viii have an interest In
1t to the extent 10 which they have
bought Glass A stock and retired
the purchase price stock. If it is
then wrecked or goes broke, It viii
/ go through r~eceivership proceedings
and be sold. The farmers will get
the proportion Of the selling.price
represented by the a stock and the
old interests will take that proper
ton presented by the p stock,
after the debts are paid.
The court would no doubt sell It
as a whole to get the best price.
Probably there would be no bidders
except the old interests. They are
the only grain men who could afford
TO bid. II they We're putting through
a plan to get an they could out Of
ii. they would bid the lowest price
AZ which they could get the proper
ties so as to be obliged to divide as
little as possible with the A stock
of the farmers.
Reasons Against Move
Under this condition Of things. a
trust would have been formed owned
by the old owners OF the businesses.
But as purely selfish and I'M
scrupulOus men, would they do this.
being men Of excellent judgement?
Here are some Of the reasons why
one would think they would not.
Such a failure Of the grain market
ing company, especially if it trimmed
the farmers out Of their none paid
for A stock, would be a sensation
over the whole country. 1t would
cause a storm in Congress. The De
partment Of Justice would be backed
by a burning Indignation in all the
agricultural States in legal attacks
on the new trust. 1t would be born
into the most serious trouble with
the Government. IT would be faced
with demands for new legislation for
the relief of the grain raisers. 1t
would create a most dangerous stu
alton for the new grain trust formed
by the ruin of the present grain
marketing company. The old grain
men must know this very well.
This is what is likely to happen
if they are false or even unfortunate
in the management Of the new grain
marketing company. I cannot see
it in any other light. Therefore, it
seems to me that we may assume
that these old grain men may be
impelled by pure selfshness to make
the Farmers Own Grain Company"
as 1t calls itself, a success.