The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-07-31
RECEIVER FOR
NEWSPAPER IN
CITY is ASKED
Involuntary Petition in Bank
ruptcy Is Filed in United
States Court
THE HEARING IN FARGO

Fargo, N. d., July 3l.-The question
of the petition of Senator Lynn j..
Frazier, W. A. Anderson. and others
to have the FarmerLabof State
Record, weekly newspaper at Bis
marck, declared IA bankrupt, was be
fore the United States District Court
here today. The paper is now being
operated by a receiver.
The chief claim on which the in
voluntary bankruptcy petition is bas-
ed is that Frazier and Anderson hold
a claim for $500 on linotype which
the Farmer Labor State Record had
agreed to pay for in installments,
and that it had not been made.
The newspaper it is represented, is
owned by about 1875 stockholders in
cooperative company. The defense
oontended the present receivership
is necessary because it was impos
sible to get the many stockholders
together for meeting.
The case came to federal court on
an order to the receiver, who is L..
a
should not be declared "a bankrupt.
The plaintiffs represented that when
a receivership was asked and named
in district court in Burlei9h county,
subsequent sale proposal TO Harold
Hopton was made, and the sale with
drawn after Frazier and Anderson,
who represented by S. f. Ellsworth
of jamestown, planned objections.
Frazier and Anderson asked that
John Bloom, of Bismarck, be named
receiver.
Defense Claim
The defense, represented by Joseph
Coghlan, claimed that the company
is solvent and is paying its bills, and
says receivership was necessary on
account of the voting power Of the
corporation being vested in many
stockholders. The paper, they claim,
is in as good financial shape as the
average newspaper, and that if a
receiver is appointed, i, should not
be John Bloom.
In Local Court
Disposition of the property Of the
Farmer Labor State Record, weekly
newspaper, was held in allegiance
pending further court action in Bur
leigh county. Objections made to
the sale of the plant to Harold Hop
ton, proposed by the receiver, were
filed by Lynn J. Frazier, United
States Senator, and w. A. Anderson
of Minneapolis, former Attorney
General, who declared they are the
owners of a linotype machine which
it was proposed to incorporate in the
fer Of Hopton was withdrawn. the
sale not being approved by the court,
and the plant is continuing to oper
ate under the receivership of l.. J.
Siljan.
The objections to the sale offered
by Senator Frazier and Mr.. Ander-
son included:
/. Alleging the court was without
jurisdiction. in the matter.
g. Declaring institution of re-
ownership in the action and appoint
ment of l.. j. Siljan as receiver vas
wholly unauthorized in law.
3. Stating that the sale made by
Mr.. Siljan as receiver to HoptOn COW
cred practically all property and
that creditors of the corporation re
ceived no notice as provided by
law.
4. That the value Of the property
reported as sold by Mr.. Siljan was
about $4,000, sum greatly in ex-
cess of the bid of Harold Hopton.
which was $9.762.67, and alleging
confirmation would injure credl-
tors.
S. That the claim of Frazier and
Anderson Of 5000 balance due on
the linotype had not been included
in the list of claims Of creditors.
6. Declaring the chattel mortgage
dated September l, 1923, and given
to secure an indebtedness to Harold
Hopton Of $4,000 was executed by
the corporation without authority
in law and is not enforceable against
the corporation.
Messrs. Frazier and Anderson ask
ed that the sale be set aside.
The receiver had informed the
court that he believed that the cor
roration was unable to continue
business and pay it's debts and that
the property ought to be sold, for
the benefit of the creditors.