The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-12-28
Securities Commission Bars
Spokane Outfit From Doing
North Dakota Business
Application to Sell Contracts
Denied and Previous Con.
tracts Held illegal


will not make any more North Da-
kota farmers hog wild"
An order barring the Spokane.
WASH, company from doing business
in the state was issued yesterday by
the state securities commission. The
company had applied for license to
sell certain service contracts but the
application was denied and all con-
tracts previously sold by the company
in the state are held illegal.
The matter came to the attention
of the securities commission when 10
Sterling farmers went hog q
few weeks ago.
The farmers said they had agreed
to purchase brood sows from the COM
pany under an agreement whereby
they were to pay part Of the initial
cost upon delivery of the animals.
The remainder Of the purchase sums
was to be paid by turning over to the
company offspring Of the brood
SowS.
Contracts Clash
The farmers said that the company
agreed to buy back the offspring in
a verbal contract but that all other
parts of the contract were written.
A few weeks ago an agent of the
company arrived at Sterling with the
sows but would not deliver the ami
mails until the farmers paid the COM
plete purchase prices in cash.
It was then that the farmers put up
their "holler." They came to F. e.
McCurdy, states attorney, with their
story. McCurdy Immediately obtained
possession of the animals through q
court order and the farmers still have
the hogs. But they want to return
the sows to the company and get
back their initial payments.
The commission, after their hear
ing, decided that the Spokane COM
pany plan of operation was fraudu-
dent in that the contract was Of such
nature that the company could not
deliver performance for any consid-
erable period of time and that the
company's advertising was mislead-
ing.
OOmmASSlOn Report
The report Of the commission fol-
lows:
Findings ana order shall be en-
tered in connection with the applica-
ton Of the Central U. s. Swine Com
pany. Inc, OF Spokane, Washington,
for a license to sell its service con-
tracts in North Dakota, to-wit: It
appears to the commission from the
evidence submitted to it, upon the
hearings had upon said application,
that:
"W-Said Company's plan of oper-
alton Is fraudulent, in that the con-
tract intended to be sold by said
Company is of such a nature and
character that it is impossible OF per-
formance on the part of the selling
company for any considerable period
Of time; and that as q consequence,
thereof will be defrauded
Of their money and property invested
therein:
"(2) Said Company's advertising,
consisting Of its contract, is upon its
face misleading and calculated to de-
ceive purchasers or investors, in that
by its terms the Company offers and
agrees to buy certain swine at prices
substantially above the regular mar
ket price for such animals. which in
the nature of things. 1t cannot do and
resell the same without heavy losses,
and said contract contains certain
provisions regarding standards to be
applied in making such purchases,
which in effect reserves to the Com
pany the sole option to make or re-
fuse such purchases;
"(O The general nature of the
Company's business is against public
policy. in that the same is founded
upon a supposed endless
chain system Of purchase and resell.
which is fundamentally unsound, and,
therefore, is deception and fraud;
and
go In many instances in connec-
ton with the business of the COM
pany heretofore transacted in North
the agents of said Company
have been guilty Of fraud and decep-
tion.
Nov. therefore, 1t is hereby or
dered that said application for a IL
cense be. and the same is hereby. In
all things denied"