Evening Republican, Volume 23, Number 183, Rensselaer, Jasper County, 30 July 1920 — SHORTAGE IS. NEAR $70,000 [ARTICLE]

SHORTAGE IS. NEAR $70,000

AND AFFAIRS OF RAUB GRAIN COAtf ANY ARE /BADLY TANGLED—KELLY STILL MISSING W. H. Blogett, staff correspondent 11 ’Of the Indianapolis News, has been at Raub, Ind., where he investigated for his paper the elevator scandal there and the disappearance of Lee W. Kelley. In his article Mr. Blodgett says: . “The whereabouts of Lee W. Kelley, manager of the Raub Grain Company, is still unknown. The affairs of the company are so tangled •as a result of Kelley’s flight that it will be weeks, before the exact condition is known. Enough has been found out; however, to show that there ii'a shortage chargeable to Kelley of about $70,000. Of this amount $39,000 in round numbers is due the Sawyer Grain Company, of Chicago and Indianapolis and $6,000 in round numbers m due McCardle & Black, of Indi-

apmis. • “The balance is due farmers who sold Weir grain to the Raub Grain Company through Kelley as manager but' they will not lose tnything because the members of the - company are all financially responsible, and though they can not be called on to pay more than $15,000, the capital stock pt the Raub Grain Company, they have announced thatthey will pay the farmers in full for their grain and already have pai4 m»ny bills.” The Raub Grain Company was incorporated October 23, 1915. The articles of incorporation were drawn by Charles M;- Snyder, one of ’the leading lawyers in this part of Indiana, who also Wrote in a specific provision that the manager of the Raub Grain Company was not permitted to speculate-on the Chicago Board of Trade or elsewhere, in bucket shops or. with gambling coneernl This was a most unusual provision because the great mgjority es the grain e&mpdnies speculate on the boards of trade of different cities. From the the Raub Grain Company was incorporated and Lee W. Kelley was made ita manager at $125 a month, there pever had been an investigation of its affairs or an audit of the books. Kelley was left in complete control. To be suret**there was a board of directors, but like many other boards of directors this board did not. direct and -Kelley ran things to suit himsealf. Finally there came nimora that Kelley was speculating heavily on Chicago apd Indianapolis, gambling on the markets. It was known that he had no money of his own with which to gamble in grain. As a result of these rumors Lemuel Shipman, a nexpert accountant of Fowler, the county seat, was called in. Mr. Shipman made a burned investigation of the books apd then called the directors together. . “Not only do you -need to have your books audited,” Mr. Shipman is skid to have declared at the meetbut you" want a lawyer, JU good lawyer at that.” ii' ''' ■ : jj j V."'..