The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-10-22
HOMES COMPANY
mot INSOLVENT,
WRIGHT CLAIMS
Minot Organization Would
Take Over Business Affairs
of Riverdale Concern
HEARINGS POSTPONED
COmpany's Plan Would Work
Out If Given Time, Wright !
Tells Commission

Representations that the Kivcrdalc
Homes company could salvage all its
assets without loss to its stock
holders II it is permitted To rcorgan-
iZe and turn them over TO company
now being formed for that purpose
were made to the state securities
commission here Thursday by w. G.
Wright. president Of the company.
The hearing, which began Thursday
morning and continued through out
the day, was continued Until November
4. At that time further testimony
may be heard and the commission may
announce its finding.
The certificate granting the COM
pany right to sell stock in it's enter
prise was ordered turned over to the
secretary Of the securities commits.
sion pending final disposition of the
case.
Claims Plan IL Successful
Wright contended that the plan o1
building homes at low cost and on the
payment plan as devised by the com.
pany has been successful and would
work out il the company is given
time.
Opposing statistics on the com.
pany's condition, submitted by o. b
Lund, auditor for the commission
Wright submitted an audit showing
the company to have liabilities Of
62,S89.47 and assets Of $61 ,139.47, Of
which $3.50 are listed as additional
profits now being earned" Lund's
statement showed the company to b
insolvent by more than $4,000.
Answering charges by Lund that the
company had evaded the requirement.
of the securities commission in that
it did not place in escrow certain
funds received from stock sales
Wright explained that an agreement
was made with stock purchasers
whereby they turned their stock ovel
to him, taking his note in return. He
then used all the money in the in
tercsts Of the company under the
theory that money received from
stock sold to an incorporator Of the
company need not be placed in escrow
subject to the commissions order.
Void Blamed For Trouble
Most of the company's troubles
Wright charged to o. r. Void, former
accountant, whose charges against the
company brought on the hearing
Wright claims Void owes the company
money as the result of misapplication
of funds and promised prosecution
F, of Void as soon as the case before the
securities commission is decided. Void
contends the company owes him
money and charges Wright with mis-
application Of the company's funds
Several intcrchanges between them
livened the proceedings.
Among items on which Lund's audit
and that submitted by Wright's dis
agree are the cost to the company Of
three homes already built, the value
Of property held in Minot and the
cost Of obtaining money to operate
the company by selling notes.
The Lund audit shows the company
lost money on the home building
Wright claims profit. Lund's audit
placed the value Of Minot property
at less than $1,000. Wright claims
it has appreciated in value in recent
weeks and is worth $4,000. Lund
said Is per cent commission was paid
to salesmen for selling eight per cent
notes. Wright denied the charge.
H. l.. Halvorson, Minot, told the
commission that group of Minot
men are ready to take over the assets
and. business Of the company and issue
stock in the new company to those
already holding stock in the Riverdale
Homes company.