Capital journal. (Salem, Or.) 1893-1895, 1895-12-19
SEVERE ON WILLIAMS.


AnsWsf Dt uuNn " hieHhfp, iteoetVef
Williams 4 England Banking 90.
In answer 10 petition Of n. Williams
in the case Of the failed banking COM
pany, Hugh r. moNary has iiisd q
document that Ia n severe arraignmeBt
Of Msjor usofgs williams, Of Salem
Hs recitss that there Ia In the bank
vault certificate ~ depoait In the
name " II. Williams for 1000, but
denies that the bank ever obtained
such sum Of money Of H. Williams,
or Of n. q. Baker, aud denies that the
bank eyer agreed 10 pay Baker per
cent in advance and PER cent per
annum for 10 months on said loan, and
denies that such certificate WAS ever
issued 10 II. Williams, Geo. Williams.
or Williams 4 England. Also denies
that receiver has any knywledge that
Il. Williams paid 10 Baker $3.50 or
any other SUM out Of bis personal funds
and that Williams even became eqult-
able holder Of said note against Baker.
Denies that he wrongfully lntsrfered
10 prevent England from endorsing
said certificate, or that he wrongfully
refused to deliver said alleged cer-
tlhcate to II. Williams, or that II. Will
llams owns or possesses any debt
against said banking company.
McNary, az receiver, further alleges
az separate answer, defense and counter
claim to said petition Of II. Williams:
/. That Geo. Williams is president,
because he aud his brother II. vii.
llams owned controlling stock.
2. That Geo. Williams, as president,
wrongfully executed his own personal
unsecured proinisofy notes to said cor
poration and wrongfully drew money
by such notes, oYerdrafts and checks
up To June 3, 1893, Of over $4,000.
8. On June 8, 1903, Geo. Williams
borrowed Of Frank @. Baker on his
personal note, $4,000 due In ~ months
at @ per cent. Oh the same day he
bought draft Of $4,000 with some Of
this money, which he endorsed to II.
Williams. He then placed the $500
In the bank on certificate Of deposit
to himself instead Of paying what he
owed the bank, said certificate being
payable In IL months. at 9 per ceut.
He borrowed $4,000 Of Baker August /,
1893, depositing same as as above.
4 and 8. August 14th Baker was
unwilling to lend Williams more and
demanded security, and Geo. Williams
gave his note TO him for $4,000 with
Eogland and r.. Williams as co-mak-
ers. Geo. Williams then drew of the
bank on his own unsecured note $4,000,
cancelled his certificates OF deposit OF
10000 and $1,000, and wrongfuliy
executed to II. Williams certificate Of
deposit Of $28. 900, payable in fifteen
months.
and Z. That Geo. Williams as
president then took from the bank
money to pay interest on notes he
owed Baker, and In all drew out of the
bank on his own unsecured indebted.
ness to the amount Of S65, 900 In all.
8. That on October /, 1895, Geo.
Williams ~ president and II. Will
llams his brother, knowing that
George was owing the bank S65, 900.
connived together for the purpose of
cheating the other creditors and stock.
holders, decided TO II. Williams all bis
real estate In Multnomah county to the
amount Of $4,000 for which II. Will
llams has never paid a cent, except
that he agreed to pay of the note of
SIS, 900 10 +. q. Baker. There are
further details set out In full In this
answer to the same effect.