Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-05-01

plainants who had commenced suit sgains
the Odd Fellows Bank. He syerrsd that hs
had converted into money nearly all the prop
erty he had received as assignee. This wsi
not true. He had converted only small
portion of it. Hs ayerred thst be had il
hand S275,0c0 proceeds Of the sale of the
property. twas not true. He did not have
exceeding $4,000. The Court here names
the creditors of tho Odd Fellows Bank who
had recovered judgment against it, with the
date OF commencement of action and date Of
Judgment in each case. At the commence
mept Of their suits they procured to bs issued
| writs Of attachment upon property described.
On the prayer of Smith the former District
Court restrained said plaintiffs from execut.
ing their judgments. The property trang-
ferrsd by Smith to the Peoples Bsnk Janu.
airy "a Was productive property, producing
one per cent. per month on the valuation
agreed upon by Smith with the Odd FeIio as
Bank and the Peoples Bank.
TIE Judgment in the cass Of tha Peoples
Bank W. the Odd Fellows Bank. August 4.
1880, wss obtained by collusion between the
parties 20 give an advantage TO the Peoples
Bank over the other creditors, and particu.
larry over the complaining creditors in this
action, TO their prejudice. Upon the filing
of the complsint In the action, June q, 1880,
attsehmenE was served on FL. c. Smith, the
Odd Fellows' Bank and the Peoples Bank,
with garnishment in the usual form.
The judgment in favor Of J. J. Ksegau
against the Odd Fellows Bank, August 4,
1880, was obtained by collision between the
parties to gain an advantage over complain.
ing creditors. to their prejudice, end ga at
tschment issued in the action. The de-
mand on which Ksegan's Judgment was
founded belonged to William Backmar, who
bought them for the bsne6s OF the Peopls'a
Bank, and sued in the name of Keegan.
who had no interest in the demands. Said
judgment is pleaded in this action in The
name ef Keegsn, for the use ard benefit Of
Beckmas, who hiss always upheld said as
signment, and in this action upholds and de.
tends the sans, in the name II Keegan, for
the use and benefit of the Peoples Bank.
Assignee Smith never made any public
sales of ths assets which came to his hands.
They have all been private. At the tins Of
the trial be claimed to have about SS0, COO,
about $50 COO of which was IN the Peoples
Bank, and Is the money mentioned on June
z, 1879. The remainder was invested in the
Pioneer Mill business Of H. G. Smith & Co.
He never kept any accounts Of the moneys SO
invested. Huntoop, Cashier of the People's
Bank, who kept Smiths accounts as as-
signee, had 10 account of this money. The
Only books in which any receipt or disbufse-
ment Of il were made were the books of H. q
Smith Il Co., keptby w H. Hicks, bookkeeper
Of Pioneer Mills. These books show what
money Smith put into that buainess and what
he drew cut, but Go not show what part came
into his hands as assignee or were SO paid
out. All the moneys recsived by him as
sssignes. except that paid on tia 10 per cent
dividend mentioned in the complaint, amount
ing TO about $50, goo. and about So, eco paid
to Wells, Fargo & Co., except such as he
paid to the Peoples Bank 1nder the contract
of June 7th aforementioned. were put into
the business of H. G.. Smith & Co. OF this
money he had taken about $40. 00O for com.
mission as assignee, and had paid his attorney
$4,000. The books kept by his clerb, Hun.
tocn, who acted SIS keeper of his accornts
assignee, did rot show anything of Smiths
payments to himself for commissions as as
aigsee. nor of moneys paid his attorney.
From the beginning to the time Of tIial tbs
assignee used all the noneys coming TO his
hands as such assignee, except those above
specified, and with some Of which funds. TO
the amount of about 81, 000, hs bought claims
of depositors in the bank of his assignor,
taking the claims in tho name of Hicks. in
order TO conceal his interest therein, ard
which olaims he purchased for 80 cents en- the
dollar. He also susd some OF che stuckhold-
ers of tbs Odd Fellows Bank in the name Of
Hicks upon these claims 50 bought.
The said assignment of September 81. 1878,
was made, both on the part of the sssignor
and the sssignee, TO hinder and defraud the
creditors OF ssid assignor and YVES made more
for the benefit OF the debtors thsn the cred
itoFs OF said sssigaor. The complsiniae cred
itors who received the 10 per cent. dividend
from pi4;atiff Gid not know Of tbs facts
touching want OF authority to make said
assignment, and ths fraudulent character Of
toe same, except the creditors who fled the
original answer snd cross-complaint August
IL, 1879; and al creditors who received ssid
dividend, and recovered judgment against
the Odd Fellows Bank, credited said pay.
me1ts upon Judgments 50 recovered.
July 81, 1877, the bank filed report re.
CURED by law showing its condition to June
80, 1877. Assets, 81 020. 526 IS; liabilities
the same, to wit : Due depositors, $685.. 444 %;
(Sl00 G0O); reserved fund, S3S, 0S2 66 (Sl20,.
SIG 49, January &c, 1878. the stateIne nj
fed showed condition to December 81, 1877.
Assets. 1923, 062 q; liabilities duo deposi
tori, SS53 949 Il; capital stock as before :
due other banks, $50 364 II; reserve, S3S,
74S %; total, S1,O29, 062 %. July 20. 1878,
statement was fled with the Bank Commits
sioners showing condition Juns 80, 1873. Al
sets. 1862 62S 81 liabilities, paid uD stock,
$50, 400; reserved, S38 1897 81; due deposi-
tors, S693, 419 %; oil er liabilities, S45, 400 IL
total. 1862 628 81. MIR. Smita, as President,
and Mr. Snow, as Cashier. swole to The state
ment as Of their personal knowledge and be-
lief From June 80 1878, to September q,
1878. there was no material charge in the
condition OF the bsnk. October 9, 1873. The
bank filed with the County Recorder IN In
ventory of its assets and liabilities. Assets,
$40, 397 06; liabilities, S644, e43 G2; excess
of assets after deducting shriLkage, $751;
24S 99). $44, sos o. TIE following assets were
good and collectabie except from Wei =, sad
wars emitted in the inventory Due from
Mike Bryte. 81 600; G ct 81 So 600; A.
HsilbEon. IS 400; Welty, IS, 400; II. Fisher,
81, SEQ; total, Sl3, 800.
After assignment the baak continued TO
manage the property ard control the conduct
of tie assignee Smith, with his coDsent
September %, 1873, the stockholders, By res
olutiop, approved tn, assignment. Sepsem.
her %, 1878, the stockholders held meeting
and agreed TO stay proceedings against Sam.
usl Poormsn on bis promise TO pay in Install
ments until his account was settlsd, and au-
thorized Smith to accept the proposition Of
Poorcaan, to pay $1,000 on the chicory
ranch if Mr.. Bryse would pay in the same
amount, the property to remain in possession
of the bank. The stockholders agreed to
loin IN employing counsel TO derend any 6Iilts
against stockholders 1t was agreed to en-
ptoy Greed Raymond and r. q. CLARK. Nc
yember IA, 1878, tie annual meeting of stock
holders was held. Willism Beckman was
elected President and w. f. Huntoon Secre.
tary. December 4, 1873, the Directors met,
and Mr.. Smith reported on different matters.
December Is, 1878, the Directors met again,
and agreed to authorizs the assignee to accept
$12, 600, gold, in settlement Of the claim Of
the bank, upon the San Pablo Building As-
ISOLATION of Vallejo. This claim was note
for S22, 600, secured by o mortgage in
Vallejo, and the monthly interest had been
promptly paid. December %, 1873, the
Directors advised with Smith as to settle
ment with Poorman.
February TO- 1879. the stockholders met,
and their expert reported and report was
filed. A committee OF three was appointed
to send circular to all claimants esainst the
bank relative TO organizing new baak. The
same day the Directors met and csnsented to
tae assignee leasing the Golden Eagle Hotel
to F. a. Hornhiower. s. w. Butler was
elected Vice President.
| May 81, 1879, Mr.. Backmsn presented his
RESIGNATION to the bank as President snd
Director. 1t was accepted. S. w. Butler
yas iecsed President ard l.. b. Mohr Di
rsctor.
June Q, 1879, tie stockholders met an6
sanctioned the conveyance CT all the assets
represented in the bill of sale of 81. G.
Smith, assigIes, TO the Peoples Savings
Bank Of Sacramento, ard agreed to 'beal
ont the Directors 10 making the conveyance
/ <t.<<z otr r..