Jasper County Democrat, Volume 23, Number 76, Rensselaer, Jasper County, 18 December 1920 — GROCETERIA IS NOT COMING [ARTICLE]

GROCETERIA IS NOT COMING

Evidently Something Radically Wrong With This Alleged Company. The “Groceteria Stores C 0.,” which recently contracted with C. L. Murphy for the purchase of his lease on the Mrs. E. S. Rhoads building and was to take over the remainder of his grocery stock and fixtures after he had reduced it as much as possible within a given time and to place Mr. 'Murphy in charge of their store here as manager at a salary of |35 per week, has abandoned its intention of opening the store, according to the following letter received by one of the purchasers of stock in the local store: GROCETERIA STORES CO., 128 No. Wells Street, Chicago.

Dear Sir: Dec. 15, 1920. Enclosed please find check for SSO, amount paid in by you for membership in our. Rensselaer branch. We have decided for the present not* to open this store, therefore herewith return .your money. Thanking you for your kind cooperation we remain, Very truly yours, GROCETERIA STORES CO., J. H. Sullivan, Pres. The plan of this company, it appears, was to sell 106 shares of stock here of the face value of 3100, 350 to be paid down with the subscription and the balance later. The stock salesmen told parties here that they had sold eighty-two of the required hundred shares. All money received for stock was to be deposited in a local bank and to be used solely on account of the local store, and all earnings of the local store were to go to the local stockholders. It is understood that some 3400 was deposited in a bank here, received from the sale of stock, but whether all was deposited we are, of course, unable to learn. But from the amount deposited the salesmen had deducted their commission, 3120, it is understood. The return check above referred to was drawn against this fund, and it would appear from the letter that all who paid money are to get same returned to them in full. However, in the case of Mr. Murphy, who is greatly damaged by the company not going ahead and opening the stpre and who was to have received stock to the amount of 31,000 as payment for his stock taken over after he had reduced it to 31,200 or thereabouts, it is a different matter, and how he will come out remains to be seen. He had practically closed out his stock almost entirely, at reduced prices, and now that the company is hot to open a store here it is plain to be seen that he is greatly damaged. Mr. Murphy had been a little uneasy over the matter for several days, as he had not heard from the company and the men who had been here soiling, stock had left town without communicating with him as to their going or when they would return, and he wrote to the Chicago office. He received a reply to the effect, that one of the men would be here Wednesday, but no. one came, and Thursday morning Mr. Murphy went up to Hammond and found that the chain of stores which the company alleged they owned at Gary and various other points in Lake county were owned by the United Co-opera-tive Stores company 1 of Hammond, with offices at 79 West Monroe street, Chicago, and, therefore, the alleged Groceteria Stores company

had made false representations here in making the contract with him and in selling stock. Two of tfce men at the head of the alleged Groceteria Stores company were formerly connected with the Co-operative Stores company, which does operate stores at Hammond, Whiting, East Chicago and Gary, but at present have no connection with said company and the representation? made here seem to have been wholly false. Mr. Murphy is “up in the air” at this Writing as to what to do, bu* it is probable that he will re-stock hiq store and open up again in the near future, and if the “Groceteria Stores company" has anything tangible behind it, it is probable that an action will be brought for damages. Mr. Murphy does not believe that anything like the amount of stock was sold here that was represented, for if it was all the money was not deposited in the bank here, and of the amount deposited, after taking out the commission of the stock salesmen, there is not sufficient left to pay the refunding of but very few shares.