Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-12-09
The GROESBECK MATTER.
Hearing Had on ths Order 10 Show
Cause, tdIS AOrnins.
Tho Negotiation of che Company 20
obtain "a 100000 Loani.
stoutiy Opposed.

Tho hearing on an orlcr to show
cause Ia the suit brought by the First
National Bank Of Dcadwood, south
Dakota, against the GroesbecS com.
panyi Helen NJ. Morgan, John Nor.
gan, Jossphinc Groosbeck, John II.
Smith, Nicholas H.. Grotsbock, JOhu
A. droc,beog, Samuel s. Grousbcok,
WIN. GrJosbook, Hyrum Grousbuok,
and Joseph 5. Gfoeabcos, was called up
In Judge Zane'a court after the Dis.
posal Of the ordinary motions this
morning.
On motion Of counsel the Firit
National Bank Of Park City was now
made n party deicndent.
The plaintiffs were represented by
Attorneys L. B. Cntchlow and W. &.
Hall; the defendants by Attorney
Arthur Brown.
The complaint was hlod on Novem.
Dor 2ith lasi, aud the substance thereof
appeared In these columns at that time.
by the proceedings taken tits sought
to have decree Of the count adJudging
that the action VI the board Of difec.
tOsr Of tho GtoUsbeck company on
August -, 1894, Ia declaring "a stock
dividend, and all acts " ils officers
and agents, are null ana void; that
every uuleudnnt holding any Hhnfrs
OF stock under the dividend be com.
pellet 90 surrender the came, that they
ue cancelled, and In case nuy Shares Of
stock ~ distributed should not be
recovered that tho value thereof be
asCortAined anu tho Defendant uifrc.
tors compelled 20 resp1nl Ia damages.
10 was also prayed that tue doiundauts
DO restrained lf0m encumbering the |
real property OF the corporation by
mortgage, deed VI trust Ut otherwise,
pending the hearing, aud In accordance
with this latter prayer Julgo Ztau
nj tho tins sui. wasbrought granted |
a temporary restraining order
The statement by counsel for the /
plaintiff was 10 the effect that betwse IA |
the lat day Of Drcemtor, 1902, anu |
lat day Of February, 1858, they loaned |
TO certain Of tue stockholders Of the
defendant company large sums Of |
money aud that they hold ~ collateral !
security |, 100 Of the $4,000 shares VI |
tbs said compnpy's capital stock, which |
the defendants represented as being |
worth SO per share. That since Feb.
fuAfy, 1903, by various wrongful and /
improper acts on the part Ut the direct. |
ofs and officers OF the company, the
capital has been wasted anu impaired /
and converted 10 private usu., aud tuat
the business Of tbs company has been
Improbable q 10 such lan extent that
-. i
than fl5 each. 10 10 further
asserted that John a. Groesbeck, pros.
ident Of the company, was permitted
by tho directors about January lot,
1898, to convert % his own use seventy
shares Of the capital stock Of the Dvs.
ufet National Back Of SAILS Lake City,
To the valae Of SO, 200, such stock DO.
Ing part Of the assets VI tho GFJtsUeck
company whereas tue difrCtDr- knew
that he was wholly iuaOlvrnL IL Is
alsI alleged that on August g3ri the
board of directors NJ the cJmuluy mot
aud dtClaIud q dividend tf2B.7l6ptF
cent per share, aud that 1850 shares OF
stock were WtOnguly distributed as
payment % the stockholders VI tue
dividend mentioned, When on the said
date the company had uO assets anu
was possessed Of uU property I'm
excess Of Us capital stock OF s3Jj, 900,
bel az compelled ~ borrow $4,000, anu
that the sg-called stock dividend Nas
declared auu paid on fraud OF the
rights and Interests OF creditors. IL Is
likewise claimed that the officers anu
directors aIe now negotiating 10 obtain |
loan la tho sum VI 100000, ami that
they Intend giving % mortgage OF decd
OF trust on their real rstGtu 20 secure
tho same, when Ia fact nu Necessity
exists for borrowing over $4,000. IL
is 10 prevent this that the proceedings
ufe taken,
The defendants pu. IN complete
answer TO the complaint
The hrsrpg Will occupy all day,
Up To noon very little heaJway had
been made,