Evening star., 1925-07-08
S26,O]0,O()O GRAIN
. MERGER D|SSOLvES
Member Concerns of Farm
ers' Cooperative To Re-
sumo Individual Trading.
By the Associated Press.

|
| CHICAGO, July S.-The Armour
Grain Co., largest unit in the coop
,erative marketing venture of the
Grain Marketing Co., moved today to
re.enter trading on the Chicago Board
of Trade in it's old name.
| Officers of the firm framed applica.
ton for readmission to the board. and
when the formalities are completed
the company will take over all open
| grain contracts now in the name OF
the Grain Marketing Co.
Rosenbaum Brothers Grain Co, a
second unit in the proposed merger.
and a factor in the bankruptcy pro-
ceedings against Dean, Onatiyia & Co..
also sought readmission to the ex-
change clearing house in the old cor
porate title.
Formed Year Ago.
The early unscrambling of the $26,.
100000 Grain Marketing Co. into four
grain companies from which 1t was
| formed a year ago had been an
| nounced to banking creditors here and
at the same time denied by officials
| of the farmers cooperative concern.
While bankers who helped finance
| the merger and who were responsible
for the dissolution story said that the
grain marketing heads were preparing
70 return the properties valued at
SIS 6,400,000 to the companies which
entered the enterprise, Gray Silver,
president of the concern. insisted that
the report was untrue and that 1t had
until the latter part of the month
to meet obligations to the vendors.
| No proposition for breaking up will
| be considered, at least not before
July 28," Mr.. Silver said.
Failure in Stock Sales Cited.
Failure of the company to persuade
enough farmers to buy stock in the
largest farmers cooperative project
ever attempted was held responsible
TOT the discussed dissolution. Under
lne incorporation contract, made JULY
zS, 1924, the company was given a
year In which to sell stock enough to
retire S4,o00,000 worth of stock given
In exchange for an advance for work.
| ing capital
Mr. Sllver's statment was seconded
oy Emanuel F. Rosenbaum. export
| director OF the company and one of
the vendors of merged company, and
by John W. Coverdale, secretary
treasurer of the concern.
Incorporated a Year Ago.
|
incorporated a year ago, and had for
It's objective eventual control bv
farmer producers. The J. Rosenba UNI
| Craln Co, Rosenbaum Brothers and
the Armour Grain Co. of Chicago and
the Davis -Noland Merrill Co of. Kan
sas City, Mo, proposed to lease their
properties to the cooperative company
ana participate on temporary basis
as board of managers.
The American Farm Bureau. Fed
Grafton approved the plan and it's Off
GERS became incorporators of the CO.
| operative concern. Some opposition de-
veloped from influential AGRICULTURAL
leaders and farm journals. Recently
the Illinois Agricultural Association
joined the opposition.
Agreement Signed by Company.
A month ago the Illinois Commerce
COMMISSION required the company to
sign an agreement with the Illinois
Agricultural Association that il would
sell no more stock in Illinois before
July 2S, the date set for accounting
with the merged companies The In
diana Securities Commission also
withheld permission to the marketing
company to sell stock in Indiana, and
application for permission to sell
stock in Ohio was withdrawn.
announcement was made this week
that the cooperative company had
disoanded its promotional forces and
stopped promoting the stock.
Banking interests, which advanced
money to the concern a year ago for
operating expenses. have been assured
they would be fully repaid and the
farmer-stockholders equity in the com.
pany is fully covered by current liquid
assets, officers said.