The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-08-03
FARMER CREDITORS
WILL GET $4,000
FROM RAIL BOARD
Payments to Be Made Soon on
Outstanding Wheat Grow
ers Storage Tickets
ALL TO BE PAID IN FULL
General Creditors of Firm Will
Get Share in Assets Of
Elevators


ers' warehouse company is expected
to be made within a month through
the North Dakota railroad commits
sion which, as trustee for ticket hold
ers, Is speeding final disposition Of
the case, Ben G. Larkin, commission
er In charge Of elevators, announced
Thursday.
The railroad commission became
trustee for the storage ticket holders
and took charge of the elevators
when the company was unable to
pay the ticket holders in May, 1881.
According to schedules made by the
auditor and accountant for the com :
mission, all claims will be paid in
full, including interest, Larkin said.
j. A. Heder, commerce counsel for
the commission, is preparing a report
to be made to the district court. This
report will be based on the audit by
a special accountant, A. c. Mclean,
as assistant to o. E. johnson, chief
elevator accountant Of the commits
sion.
1nasmuch as the case involves pub
Ncation OF notices to ticket holders
and creditors, and sending out Of no.
tices involving approximately 1,400
storage tickets, as well as notices to
general creditors, large amount Of
work is entailed In making a final
disposition Of the case, Heder said.
General Creditors Involved
Ordinarily the general creditors of
the warehouse company would not he
cited, but since there are conflicting
claims between the creditors and
bonding companies, hearing will he
had to determine which creditors
have the right to averages that will
exist. AS far as the commission is
concerned, Heder said, there will be
no unnecessary delay in paying ticket
holders and the commission will he
discharged Of its trusteeship regard
less of how disposition of averages is
made.
The amount collected by the COM
mission is above the amount nece$-
sary to pay storage ticket holders, ex-
penses, and costs of litigation. About
$4,000 will be left over and deposited
in court for claimants who are not
ticket holders.
The Wheat Growers Warehouse
company, In May, 1881, apparently
was unable to market its grain ard
consequently could not pay outstand-
Ing storage checks. Under the North
Dakota law the company asked the
commission to take charge as trustee
and the commission marshaled the
assets as required by law; shipped the
grain out OF the elevators, sold It,,
and made q check Of outstanding
storage. Complications arose in re-
covering from the bonding companies
which had guaranteed payment for
all grain delivered, as in some eleva-
tors there was more than enough
grain to pay the storage receipts,
while in others there were shortages.
Bonding Companies Lose
The shortages exceeded the over
ages and the bonding companies
claimed the bond was a blanket bond
and sought credit for grain sold by
the commission. The commission
contended the bonds were for IS 900
for each warehouse and that it was
the duty Of the bonding company to
pay the full amount of the shortages,
costs and expenses Of the trusteeship,
at once without regard to averages
existing in some Of the warehouses.
The district court held for the rail-
road commission and on appeal to
the supreme court the decision was
affirmed.
Judge Fred Jansonius, In Bur-
leigh county district court, although
holding for the commission, said in a
memorandum opinion that the rail-
road commission should require "a
bond In a lump sum to protect all
elevators -. where the bond is
in one instrument"
The supreme court affirmed Judge
JanSonius' decision but held that the
bond, although in a single irstrl-
ment, was bond for each individual
warehouse. it being optional with the
commission as to which form 1t de-
sires to approve and accept. Heder
argued the case before the supreme
court, together with T. G. Madden,
former commerce counsel for the
commission. who had charge OF the
action at its commencement.
Since the supreme courts decision,
the two bonding companies have
paid to the commission the full sum
for which they were held liable, in
GLIDING the cost OF administration Of
the fund and interest.