The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-23

Present indications are that within tbs
next few days more suits are to be piled
up against the Salt Lake Copper Manu-
featuring company and the promoters of
! the copper plant enterprise, and it is
| understood that when the new parties en-
ter the lists they will do so prepared TO
knock out the entire fabric and secure a,
victory at an easy canter. These latter
people are those Who contributed to the
bonus fund, under the specified agreement
that the great works were to be completed
and put in actual operation something
over a year ago. Now it is proposed by
the stockholders and officials to make
/ themselves whole before the fall by the
! sale OF the company's properties under
| the foreclosure of a certain deed OF trust,
/ and at this stage of the game the citizens
whose money flowed into the bonus fund
propose to take a. hand. For some time
/ past number Of the heavy contributors
have been holding almost daily consulta-
tons. and the result of those repeated
! meetings will be the suits mentioned An
| attempt is to be made to secure the re-
| turn OF the money contributed and the
! Prospective plaintiffs are OF the opinion
| lIidt ney nave walk over.
| The Defendants Answer.
The defendants in the suit for Injunction
3
/ pany, Trustee HanaUer and q long list OF
I creditors, yesterday afternoon filed their
/ answer to the allegations contained in the
/ complaint made in the Third district
| court. They deny all the material aIIega-
| tons in the complaint and for further
answer allege that at the time of the
/ execution of the unrecOrded trust deed 1t
| was agreed among the directors of the
I copper company and the benefciaries un-
| der the trust deed, including the plaintiff,
| that the same should not be recorded
! he
/ because it would iniure the company's
credlt II 1t was recorded; that at the time
the loan was made, as an inducement
| 70 the other persons who advanced money
! 10 make up the aggregate of said loan
| the plaintiff, who was manager of the
! deIendant company, represented that $780,
0o0 would be ample to meet the company's
! wants up to a time when the opera tons
/ of said plant would sustain the Company
1 financially and they relied upon and be-
l!eVed and acted upon such representa-
IONS and that after the execution Of the
unrecorded deed the plaintiff, acting for
me company, for the purpose of securing;
from defendant Mccormick moneys to
continue the construction of the plant
! represented to Mccormick that the prop
erty OF the company was unincumbeIed
| and asked the banker to advance money.
! which he did, on those representations.
| IN the sum of $40 000
! 1t is also alleged that for the purpose OF
! paying off pressing indebtednesses Of the
company $4,000 was raised by Singer who,
contributed g, 800, Green g. 500 Saks Nav
and others $4,000. This was done on the
representation Of Singer that such sum
would be sufficient to pay off the press
ing claims. but it was afterwards dis
covered that $4,000 was needed to save the
institution from immediate bankruptcy,
ana SakS and May with other directors
contributed $4,000 more. Then it turned
up that $4,000 mere was needed to nav
off Indebtedness on the real estate, that
company, which sum was obtained frorf
Mccormick en- the condition that h.
be given a first lien on the property to
secure the $4,000 previously advanced b.
him and the SIS, COO, making S75, COO IN all
A deed of trust was therefore made to
secure Mccormick first, then StaImann,
and then other claims and indebt-
edneSS, and that as to the claims that
were secured by both the unrecorded and
recorded trust deeds they should be post
p0ned and subordinate in time and right
to the claims of Mccormick and Stalmann
and said $4,000 advanced to save the
company aforesaid. The first trust deed
was considered merged in the second and
that the note for the $4,000 advanced and
to be advanced by the plaintiff, Green,
May, SakS and others. should be taken i'm
the name of Saks and May but in trust
for the plaintiff; and said other persons
TO the extent of the parts and proper
tons advanced by each.
The plaintiff was duly notified Of the
contamination OF all of said transactions
and the terms and conditions thereof
and he approved Of the same and made
no protest or gave any indication OF his
disapproval, and Hanauer and Mccormick
had no notice or knowledge as 10 the ex-
b iStence of said unrecorded mortgage.
Wherefore the defendants pray Judg-
ment; that plaintiff take nothing; that
his claim be decreed to be subsequent in
time and right to the recorded mortgage
and the claims secured thereby, and that
ne be adjudged as estopped and enjoined
/ from maintaining his alleged priority.
Another Interested Party.
Judge Won Volkenberg, of Milwaukee,
! representing Mr.. Harrison, father-in-law
of Green, and present owner of the Nc
Cornick $4,000 note, arrived in the city
yesterday and will take part in the hear
| ing on Saturday, which gives promise OF
being extremely lively
Stalmann is said to have gone to Chi
cago. PROBABLY to consult with Frazier d
| Chalmers.