New Britain herald., 1925-07-06
GRAIN MARKETING
 IS FACING CRISIS
Four Million Dollar Debt Must
 Be Met July 2S
NO MORE STOCK SELLING
s2e, ,ooo,oo0 Corporation Drops Cam. paign to Sell to Fsrmcrs--Officers Seeking Way to Meet Big Obliga- ton Due This Month,

Chicago, July S P)-Officers O the Grain Marketing Company. thu s26, 6,000,000 corporation launched { year ago to facilitate the merger O four large western grain firm, in a project designed eventually tc come under producer control an. nounced today the stock selling cam. paign among farmers had been def. initely abandoned.
 John w. Coverdale, secretary. treasurer of the company, said the promotion work of the holding or, ganization had not been pushed as vigorously as originally planned fol the last thirty days and that the firm must find other means of meet. ing s4,000,000 in obligations due July 28.
 Special Meeting Today
 Officers and directors of the com pany assembled today for a specia meeting to consider the future course of the enterprise.
 An advance of S4,00o.000 for op. erating expenses made by the merging firms, must be repaid July oS, under the original contract terms. Officers of the company now are working on other plans to meet the obligation, but prior to the meeting none would discuss the proposals in hand.
 Brokerage Failure
 Gray Silver, president of the company, returned to the city this morning from a Independence day speaking tour in Nebraska and was at his office early assembling data for the meeting. He declined tc discuss in advance what proposals would be considered. but reiterated that the company's involvement in the sS5,oO0,0O0 bankruptcy proceed ings against the Dean. Onativia com. pany, inaugurated Friday, was only indirect and such as would not weaken the financial position of the marketing enterprise.
 Although the normal force did not report for work this morning In the offices of the promotion department of the company. officers indicated that letters to employees of the de- pertinent mailed last week notifying them Of sharp reduction in the staff had no connection with the status of the company resultant ot the brokerage house failure.
 The normal function of the pro motion department was to handle the stock selling campaign through which, under the plan announced at the inception Of the merger, grain producers were 10 purchase the pro- nerties of the consolidating firms for s17,000,o0o.
 Sales Below Expectation
 While recent financial statements of the company showed stock sales had not been up to expectations dur ing the first ten months of opera ton, profits of $1,5OO,o00 on more than oOO,OOO,O0o bushels of grain handled, placed the organization In a position which officers interpreted as assuring prompt settlement Of s4,000,O0O in advance obligations falling dus July 2S.
 Emmanuel S. Rosenbaum, rrcsi- dent of the Rosenbaum Grain cor poration. s7,oOo,OoO firm which was party to the grain merger, was a majority holder of Dean, Onativia stock. He will participate in to- days meeting of the grain com pany officials, as director of export sales of the Grain Marketing com pany.
 H. g. Ballard, general counsel for the company, arrived this morning from Columbus, Ohio to attend the 
 staff is Depleted
 Tn the quarters of the promotion he found stenoEra- pher and one staff employe. Last week the department roll carried ten 
 An accountant who received q letter last week telling him his serv- ices would not he required after July 8, said today a number of his co-workers were similarly dismissed. Officers of the company confirmed reports that all field workers en- gagged in promotion work had been called In.