The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-08-10
A BIG CIVIL SUIT.
The AinsIee Lumber Company
Sued for $4,000.
Fraudulent Representations AlIeged-W. B.
King Eppoinied Receiyer-Utah
Firms Affected.

The Nevada Bank of San Francisco yes
terday filed in the Office Of the Third dis
trict court suit against the Ainslie Lum-
Der company and George w. Hazen, trus-
tee.
The complaint alleges that the lumber
company is corporation existing under
the laws OF Oregon, and It's principal place
of business is ut Portland, and are engaged
in running saw-mills and manufacturing
lumber, aud also owns property in Idaho,
Washington and Utah.
They allege that the defendant lumber
company is indebted to them in the sum Of
$4,000 for money loaned on bills Of ex-
change which is not yet due, and 10 brought
on behalf of the bank and all other credi-
tors who may wish to be made party
thereto.
On the Sth Of July, 1892, the complaint
states, the company called meeting OF
their creditors and represented that they
were unable to meet their obligations, and
an agreement was entered into by certain
OF the creditors, by which all the property
Of the company was Transferred to George
w. HaZen, as trustee.
The property transferred was repre-
sented as of the value OF $780, UO IN wash
iDgton, books of account in Oregon amount
ing to $40, 600, the townsite OF Ainslie con-
sisting OF 100 acres, less sales, and lumber
in yards in Idaho and Utah, these being
valued at $250000.
The agl cement was that the trustee
should take complete management and con-
troll Of the compeny's assets and business,
and TO operate and dispose of the same to
the beat possible advantage for the use and
benefit Of the creditors in baid agreement
specifically mentioned, aud Of other credi-
tors who might elect to come in.
The agreement was entered into on the
one part by the Ainslie Lumber company,
and the other parties were the Bank of
Columbia, claiming $780, the Mer-
chants National bank, claiming $50, 600;
the Portland National bank, claiming 500,
600; the London and San Francisco bank
Qimited), claiming 10000, and the Com
mercial State Bank of Chehalis, claiming
$23, 600.
The company stated that ell its other
debts did not exceed s75, 900 or Whereabouts,
aud the value of the property transferred
to the trustee amounted in value TO S545,
600, and the creditors entered into the
agreement on these representations.
The plaintiff further alleges:
That it is not party to the agreement
and never consented to it.
That Hazen Immediately after the trans
fer had been made attempted to take pos
session of the property and manage the
business.
That the representations made by de-
PENDANT as to the value of assets and
amount of liabilities were untrue.
That at the time the liabilities other than
those of the bank mentioned amounted to
1925, 600, as near as can be ascertained.
That the assets ware largely encountered
by liens of various kinds, and the value
did not exceed SIZE, 000 and the amount
that can be realized from them will not ex-
coed 100000
That the agreement was entered into by
the creditors under misrepresentation and
by reason of the fraudulent representa-
tioDs made.
That the company was entirely insolvent
at the time, and was known to be by the
officers who made said representations at
the meeting of the creditors.
That tie defendant company, during the
past Jew months, borrowed from the plain
Tiff and other banks mentioned, nearly
half a million dollars, which was received
and handled by the officers of said Anslie
Lumber company; but that neither plain
tiff or George w. Hazsn, nor any Of said
banks, have been able to ascertain from
the lumber company or any OF its officers,
what disposition has been made OF any
considerable portion of the money.
That the assets OF the company having
! De6u conveyed, ana Inc QtUJ owing pi6lu-
tiff having not yet matured, they are uu-
able to bring az attachment suit or other
wise secure lien against defendant COM
pany.
That the agreement was fraud on the
part of the company.
That numerous creditors have brought
attachment suits and levied, and unless the
court takes jurisdiction the title to the
property will become embarrassed by con-
hicting claims and be sacrificed.
The plaintiff says complaint was filed
in the United States circuit court for the
district of Oregon, asking for. the appoint
ment of q receiver, and Hazen, the trustee,
consented to the granting Of said bill, and
/ William 3. King was duly appointed and
qualified, his bond being placed at $4,000.
1t is also alleged the defendant corpora
tion has real and personal property in
Utah, consisting OF lumber aud building
materials, to the value of $4,000, and is
held under the following names: Park
City Lumber company, Park City; Weber
Lumber company, Ogden; Colorado Lum-
Der company, Provo; Springville Lumber
company, Springville.
On motion of Farley Williams, Judge
Anderson yesterday appointed William B.
King receiver OF defendants property in
Utah, the bond being fixed at $50, 600.