The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-06

PENDANT. That said alleged trust deed to
Sdlu danauer was made purporting to Sc
OO0 10 the defendants, Andrew SakS and
! David May, the sum of $50, 600 to L. d.
Shoenberg, the sum of 10000 TO 5; W.
| Peck, and the sum of SO 0UJ to the plain
| tiff, Edward T. Singer. The officers Sc
! cured themselves. That each of said par
/ ties so attempted to be secured were then
| officers, directors and managing agents OF
| the affairs of said defendant corporation,
the Salt Lake City Copper Manufacturing
company. That the sum of $4,000 attempt
| ed TO be secured to the defendant, Hanau-
! er, IN so far as it represented any valua-
pie consideration, was d claim for Wnlcn
the SAID directors of said company were
| personally liable as guarantors, and the
sum so attempted to he secured to the de-
| PENDANT, Harriet l.. Green, was a claim
| for which said defendant directors were
personally liable as guarantors: mat tne
| SAID deed OF trust to the defendant, Han
| auer, and the bill OF sale executed stimuli
! taneously Herewith and for the same
! purposes, purported to convey to SAID
Hanauer, trustee, all the property OF eV-
| cry kind and description which the de-
PENDANT Copper Company corporation
then possessed or might thereafter &C
! qulre, and was in fact and in effect
general assignment of all its property for
the uses and purposes in said two inStru-
mentS expressed. That said two 1nStru-
mentS purpOrted to convey large por-
ton of the assets of said defendant cor
poratlon to the especial use and security
OF It's acting manag and directors, To-
VIII the sum OF SJU,UUU, TO the QeI6DudulS,
SakS and May, the sum of $4,000 to the
oefendant, L. D. Shoenberg, the sum OF
$4,000 to the defendant, S. W. Peck, the
sum of $4,000 TO the plaintiff, Edward T.
Singer, so that the direct effect of the
said deed of trust and bill of sale and OF
the preferences therein created, is to de-
vote the entire property and assets of the
defendant Copper Company, except the
pa1try sum of 5000, 10 the payment OF
debts or pretended claims in which the
said directors were and are personally
afsnFaG tod oil If
property and assets except the sum OF
$500 to the direct use and benefit of the
directors and managing agents of SAID
Copper Company corporation, in fraud OF
the rights of this defendant and others
who We're then outside and bona fide
creditors of said Copper Company cor
and claims SO by said deed of trust ana
bill of sale TO the defendant Hanauer at
tempted to be secured to said defendant
directors and such of them, and to which
preference is attempted TO be given by
said deed was so far as either represent
ed any bona fide claim against the said
defendant Copper Company for pre-eXlSt-
ing Indebtedness of said corporation ana
not for any present consideration then
advanced or paid or agreed to be paid by
any one of said directors, and the said
attempt of said defendants VINO are direc-
tors and managing agents of said defend
ant Copper Company corporation TO so
secure to themselves preferences for their
then existing claims over the claim or
this defendant and other outside and
bona fide creditors of the defendant Cop
per Company was fraudulent in law and
in fact, and said deed of trust was execu-
ted for the purpose of defrauding this de-
PENDANT and other outside bona tide cred
itors of said Copper Company, and such
fraudulent acts make said deed of trust
and bill of sale void as to this defendant.
Serious Charges Against the Direc-
tors.
This defendant is further informed and
lief charges the fact to be that the
defendants who are directors of the said
Copper Company as aforesaid have, dur
ing their management of the affairs of
said corporation diverted of the funds of
said corporation which purported
TO be the proceeds Of the loan
more than $1,000 to their own private
uses ard purposes to the detriment of the
creditors of said Copper Company corpo-
ration. That two attempts have been
made by said defendant Hanauer. as
trustee, at the instigation of said direc-
tors to advertise for sale and sell the
property of said defendant corporation
under said alleged deed of trust, and that
all the expenses of such attempts have
been paid wrOngfully by said directors out
of the funds of said company and the
funds OF said company are by said direc-
tors being constant Y misappropriated and
wasted and converted to the private use
of the said directors and managing agents
Of said corporation.
This defendant is further informed and
believes and on such information and be-
lief charges the fact to be that the stock
holders and officers of said Company cor
porduon are now and were at the date OF
the execution of said deed Of trust to the
defendant Hanauer at variance with one
another and divided into conflicting fac
tons, each attempting TO secure advan-
tageS over the other, and instead of pro-
tecting the property of said company
We're and are seeking to force the same
to sale for the purpose of buying it in at
a sacrifice. That said deed of trust to the
defendant, Hanauer, which was made on
the 24th day of September, 1894, was made
oStenSibly to secure a large sum of
money, towit: the sum of S227,2O0, and
was made to mature by its terms in nine
" days from its date, and said directors
who attempted to authorize the execution
of the same, well knew at the time that
said corporation would not be able to pay
any of said Indebtedness by the date of
maturity of said trust deed. That on the
very day Of its maturity the said direc-
tors, SdkS, May and ShoenberS, demand
ed of said trustee that he at once proceed
TO fOreclOSe the said trust deed by notice
and sale. That said attempts at sale un-
der said trust deed were not made with a
view 10 pay off any bona fide indebted
ness of said company, but were simply
attempts to secure individual advantage
as stockholders and to freeze out other
stockholders and defraud creditors. That
at the time of the purported execution of
said trust deed to the defendant, Hanau-
er. and at the time of the attempts TO 50
foreclose it, the defendants Saks, May
and Shoenberg, directors as aforesaid,
held a large part of the stock of said de-
PENDANT Copper Company corpora ton and
their effort and purpose in all said tran
SactionS was to secure personal adVan-
Jage TO themselves and protect their pri-
Vate interests as stockholders to the deJ-
riment of the interests of other stock /
holders of said corporation.
The UnrecOrded Deed.
This defendant is further informed and
on such information alleges, that on or |
about the first day of June, 1894, the direc- |
tors of said Copper Company corporation. |
claiming and pretending TO act for said !
corporation, executed or attempted to |
execute and deliver to the defendant, Da-
Vid May, a certain other deed of trust of |
the real property of said defendant cor |
poration situate in the county of Salt |
Lake, Utah, and being the same deed set |
out in plaintiffs amended complaint and /
trust purported to secure payment to the |
plaintiff, 1000; to the defendant, Harriet /
l. Green, $25. 600; to the defendant, l.. d. /
$4,000, and to the defendant |
S. w. Peck, 0,000, which said sums and /
each of them are the same claims de- /
scribed in Id purported to be secured by |
said alleged trust deed TO the defendant, !
Hanauer. That said alleged trust deed to /
the defendant. David May, was never !
filed for record or recorded in the office of [
the Recorder of Salt Lake county, where |
the properties purporting to be conveyed |
were situate, but was an instrument made |
and held in secret and by the agreement |
and consent of all the parties thereto |
was withheld from record for the purpose /
Oh the part of all of said parties of giving |
to said Copper Plant corporation ficti- |
tiouS appearance of credit and of enab- !
ling said Copper Plant corporation to OBJ |
tain credit and purchase goods and mate |
rial of other parties without knowledge |