Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1894-01-26
Shareholders Of ito National Build
ilg q Loan Association
ARE NOW All UP IS ARMS.
Bissalisil d with VIVA, Has Beeu
Donr, The Aid Of the Courts
f. sought.

WIS ~ NNlNNf AHNAh NAN hAAAtN" az
number, include G. T.. Laugham,
Harry Haynes OF Murray; Ex.Mayor
DusonOory Of Provo; J. J. CaTum,
councilman Of salt Lake city; Mayor
Holbrook Of Provo; John II. Twelvts,
cNshiprof thobank " Commerce, Provo;
Jae. Chapman, banker, American Fork;
DR.. +. A. Mcacham, city; Attorney
George sutherland, anu Louis Gsff Of
Luhi.
The defendants to the suit are the
Western Loan q Savings company,
the National Building q Loan Asooi.
alton Of Salt Like cityi Hudson, smith
and Il. T.. Nilsson.
Shareholders In tho defendant com.
panits residing IN many points Of Utah,
Colorado, lows, Montana, etc, are
alaD named a. plaintiffs. Upon behnli
Of these nud the parties hNt named
the complaint was nlud by the law
figm oi Duy d Street Of this city.
Tue complaint (which IL n very vol.
luminous dUcumput) sets forth, In sub.
stance, that the National BuhdlngHud
Loan association was incorporated
about March %, 1880, uuuur the pro.
visions uf chapter ~ OF The laws Of
UlaA Tor 1899, aud continued 10 oxsI-
ciSs its corporate rights until July,
1898, when It's assets nad business
were tfau6iefrul 10 the Western
Loan and Savlnns company; that
at that time the N4lional had
had only nominal cxisteuce and
transacted NJ business Wnutevof; tuat
at tho time OF the transfer tbs difvu ORE
OF tho National were tho defendants
Hudson smith, "A. II. Macon, Il. e..
Grntcuh, BOyl Park, J. 4. C1fkor,
Charles BALDWIN ard a. 4. ltchari.
ron, anu that the asa1HlatlOa was thea
ius0lveut, the face value 10 90 the ~.
tets not buius sufficient by a sum *.
ceuJing $4,000 ~ pay ils liabilities
which iaUt was known % none VI The
aharohOidun exc pt the directors
named.
Without any Knowledge OF n dcGcl.
oncy OF tho nstr,s Of the National
plaintiffs were induced 10 vote ilr thu
transfer, anu by roaion OF representa-.
tons made 10 thou,
Plaiutils further all0ye that no me- &.
ing VI stockhoiden uf tue Western
Loan anu savings company was cAilei
or held felating 10 a al-gallud "mrTg-
ing or practical cons1liiuti1uv Of thu
National with the Western, bus that
all negotiations, contracts anu agrees
ments Ia connection Herewith were
mate and executed on behalf 81 the
Western Loan aud SayiuRs company
10y the directors aud Ufllcors Of tho
a.. .HaH
know ledge or approval OF the StJag.
holders or twC-.hiTds thc:ugf, anu that
no meeting OF the stockholders VI SAID
company was cIlls1 or held re.
lAting u the transfer.
Plaintiffs then declare, uron lnior-
nation and belief, that the Western,
through It's direct 70 aud I'll sers, were
fully advised aud well aware before
entering Into negotiations that the 20.
called Emerging or practical consollda-
ton" Of thr Two corporations was Illegal
aud contrary 10 the laws Of thu rctTi.
tory, that Is directors AMI officers COZ.
spired and combined with the directors
Of tho National, entered Into negUtia.
tons In consequence Of pfe.nln-
cclvcd design, aud with the iutent b
Illegally ana wrUnglully transfer the
business and assets aud by secret, covert
and Illegal arts and devices 10 induce
anu compel the shareholders OF the
National 10 sign agreements 10 trauaeT
their shares anu right TO the Wyatsrn.
10 IN likewise alleged that certain
proxies held by one Clarence Grange,
secretary VI the Western, were pro.
cured ly mitr, presentation, anu by
tho procurement OF tho said Western
Loan q : wings company, aud IN Tur.
suanco OF the general scheme TO
Illegally tIaualet the business.
After reciting other wrongful ac's In
regard 10 certain notes, plaintiffs 90 on
10 aver that since the transfer OF the
business was made 10 ", tho Western
Loan 4 Savings company has usurpod
and attempted 10 exercise the corporate
rights AMI franchises OF the National,
aud In general used ana appropriated
ita assets without regard 10 tue Tighls
OF the Shareholder; hnd thst the with.
drawing stockholders have not re-.
csiyoi anything whatever from either
tho National or tho Western.
II. IL further avttred upon slnior-
nation aud heiitf thHt tbs directors Of
the National have grossly mlaman-
aged the business OF tho ASSOCIATION,
falsely represented It's coalition 10 the
shareholders aud paid out It's moneys
In manuer contrary 20 law; a. assets
have BISON allowed 10 shrink 10 nu
amount exceeding s28,Q0U below
the sum actually due to the shsrr.
holden by reason Of uulaw-
iul payments, etc, IL Is claimed
likewise that the directors have Issued
shares Of stock contrary to law ana
without confederation, aud authorized
payments OF Withdrawals In m illegal
manner contrary TO tue charter ami by
laws.
Plainlllia wind up by saying that TIA,
National Building ami Loan assooia.
ton by it, stockholders have suffered
damage by reason Of the foregoing act
10 the extent Of s2i, 900, aud that the
dirrClOrs should be compelled T. pay
such amount 20 n receiver in this nc
ton, 40 that tho PLAINTIFF, as with
drawing membets, mpy bo awarded
their pro ILta share Of the amount.
Wherefore plaintiffs pray that Ia
transfer OF tle uhsetl ann business au,
all transactions connected thtrewitl
he declared Illegal aud void; iht
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