The herald., 1893-08-12
The Assets Likely to Be
Further Reduced.
sDepositors Preparing to Re-
b move Receiver Brodtbeck.
An Arizona Irrigation Scheme Which
Figures in the Case.
4 claim That ths Receiver was MOT
Properly Appointsd-A Big Claim
Against the Available
Asssts.

yron Thursday's DAILY HERALD
The authority Of Receiver BrodtDeck
Of the City bank will be called 10 ques-
tion probably ON Saturday or early next
week By the attorney for the deposifors'
II appears that there 10 hardly any
room for doubt that Mr.. Brodtbsck Was
not properly appointed. He. It 10
claimed. was appointed under one COM
plaint and 10 acting under another, on
which no summons has ever been is
susd. This matter will be fully inquired
into in the proceedings which wili soon
be commenced.
ANOTHER TANGLE.
The hopes Of the depositors In the late
CITY bank for recovering any considera-
!. bls norton Of their deposits are far from
beine eanguine, nor a. the time passes
do their chances appear to be height
,ened to any great extent In fact, every
. week seems TO reveal some part OF the
& assets q void, and various means upon
which the dspositors relied to help pserye
the reimbursement fund are found to be
faulty. and the situation appears worse
now than several weeks ago.
A petition, which materially affects
the present email amount of aessts in
the rsceiyer's hands, WAS filed in depart
ment fvs--of the superior court last
Monday, and awaits only the return OF
Judge Shaw from his vacation before
being formally argued and presented BY
counsel.
Itis complaint In intervention by
James B. Rice, and was incorporated to
the complaint In the original case OF
Margaret E. Miller W. the City bank by
an order issued by Judge Smith. The
complaint in intervention asks that the
court order the receiver 10 pay ct once
to the complainant the sum Of $l23O in.
tact, slresdy held by the City bank -
a. trustee, together with certain notes and
papers to the value Of over 10000, re-
serving such sum - may be due the
bank for its services % trustee.
! The reason alleged by the complaint
why that sum should be had now and
N NOT. be classed among the ordinary COM
mercial deposits received in the course
:. of business, 10 that Il was held in trust
= BY the bank, and trust ACCOUNTS ere
never held in the general banking fund
and are entitled to the preference over
ordinary accounts.
II the order is granted by the court. it
will take exactly $l230 ont Of the fund
& that the depositors thought was intact
{. and would be used in liquidating their
claims. That this new move will not
meet with universal pleasure goes with
out comment.
The complaint 10 the outcome Of an
Arisona irrigation deal started sight
.ysara ago. In that enterprise, Louis
Molnsyl;; yl;,'. |: k,nd, ssrritaElaiAS riEliASY SSpgsd dam
ssw - .nsossiuiiity .atss irrigating system
over th6 surrounding country. He en-
gagged several parties in the project, aud
sold several hundred thousands of dol
lars' worth OF water right to the settlers
I along the line. Finally he could not 20
4 ahssd with the work, and : party Of
rich Peoria, ILL.,, people stepped in and
& offered to finish the system. He
agreed to give them sufficient notes
collected from the settlers to reim-
y bursc them for the work; also to meet
aoau actual expenditures. with corre-
iapopding value in the notes. He made
, mortgage, in the form OF trust deed.
4 for the dam site, which he gave to the
CITY bank to hold ~ trustee. In order
70 further securs the Peoria people he
gave notes to the value Of between $780,
900 and 10000.
-ea In its Office 90 trustee the bank was TO
collect from the settlers the interest and
! other money accrning ON the notes, and
TO be held in trust. It was further pro-
ayidsd that II Wol6sy failed in 'his con-
tract With the Peoria people the bank,
~ trustee. was to sell the property at
( During the period Of year the sum of
$l2SO interest on the notes was paid into
the bank. Wolhey failed in his contract
With the Peoria people, and the property
IL to be sold August Goth, with the re-
suit that they viii buy it ali in and in
time develop fortune.
The present action Sc brought by Mr..
James M. Rice OF the Peoria company.
which 10 known ~ the Arizona Construc.
tion company, to compel the payment Of |
the $3.50 interest to his company.
The item Ia the receivers report ap- |
pears simply ~ "City bank trustee, |
Mr.. A. D. Chiidress has made afi.
|ayit, which is attached to the COM
laint, that both the 1920 interest and |
be package Of papers wore held by the
knk a. trustee. The 1890 ia 10 an
red on the banks books.
Mr.. h. Q. Collins, the attorney of the
tiEona Construction company. las
Pn yesterday BY q HERALD reporter.
I. Collins stated the reasons for draw
the complaint in intervention az
len above. He said that the matter
the payment Of the 1920 would prob
not be decided by Judge Shaw
il he had carefully considered the
,. As to the papers, he thought that
re- would be no contest made over
m.
pHATH OF MRS. JONES.