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

Messrs. Loofbourow and Kahn, rep
resenting creditors of the Salt Lake
Copper company, whose claims total
UP to more than $50, 900, yesterday took
decided step which viii mark a new
era in the litigation into which the af-
fairs of the copper company have
fallen. Messrs. Loofbourow and Kahn
and their clients have become weary of
the disputes which have been going on
betwee: the various factions in the
concern and concluded to at least
makAan attempt to save something
Tor theN creditors, and consequently
have entered suit in intervention,
which winds up with d, prayer that a
receiI " for all of the properties be
appointed with instructions to convert
the asselG into cash as quickly as pos
slble and distribute it among the cred
itors. and that the trust deeds exc
cuted to Hanauer and May be declared
fraudulent ana void.
The suit is entitled, answer and
cross-complaiat of the defendant, the
Glllette-HcrzOg Manufacturing COM
pany, IN the suit of Edward L. Singer
vs.1t1e Sat Lake City Copper Man
Ufacturing company ct al. The answer
starts cut with a denial of all the ma
terlaI allegations of the complainant,
and for further answer and cross
complaint against Singer, the copper
company, Mccormick & Co, \. Han
auer, Otto Stalmann, Andrew Saks,
David May, David May, trustee; /. D.
Shoenberg, Joseph Z. Shoenberg, s. w.
Peck, Harriet L. Green, Stephen A.
Harrison, Dwyer & CosSrove, makes
allegations as follows:
Answer and Cross-CompIaint.
That on or about the 24th day of Sep
tember, 1884, the defendant, David May,
claiming 20 act as president, and one
Charles H TUiley. claiming to act as sec
rotary of the defendant Salt Lake City
Copper Manufacturing company, pretend
- 10 execute TO me defendant, Abraham
deuauer, as trustee, an instrument in
writing, purDCrti1g TO he a deed of trust
OF all the aforesaid real property and
mines and of ali other property of every
69nd ana description then possessed or
thereafter TO be acquired by said defend
ant copper Company, and at the same
time pretended to execute and deliver to
eald defendant, Hanauer, as trustee,
bill OF sale conveying 10 him all the
shares of the capital stock of the said
Stan Mining Company then held by said
0eiendaht Salt Lake City Copper Manu-
featuring Company. That said pretended
trust deed purports on its face to secure
divers claims amounting in the aggregate
20 the sum of $227, zoe. which sum, as this
defendant is informed and so charges the
fact TO be, is the full value of all the
properly of the said defendant Cop
Per So Any That as this defendant is
inror11&kthe defendants, David May An
Grew EaSs, and Joseph z. Shoenberg,
withoFfTSny authority, pretended and as
sumed to represent the board of directors
Of said Copper Company in the authorize
ton and execution of said alleged trust
deed, ana that their said acts in so at
tempting to act as said board of directors
OF said company were not the acts of the
legal board Of directors of said Copper
Company and were wholly unauthorized
and void. That such action was not TAX
en- at any regular meeting or at any duly
called meeting of the board of directors
AZ nf nfao fn.a T1,av- ii
rectors had notice.
Owed Mccormick Only $4,000.
And this defendant is further informed
and believes and on such information and
belief charges the fact to be that of the
claims purporting to be secured by said
deed of trust, the one given priority being
q promissory note 10 the defendant A
danausr $4,000 OF date September 24th
1884, due in ninety days with eight per
cent u ,terest from date until paid, was
given y said defendant Hanauer, for the
use siof Mccormick & Co., bankers at Salt
LaEe city, Utah. That at the time of the
execution of said note and trust deed, the
said defendant Copper Company did not
owe the said Mccormick d CO. $4,000 nor
any other sum in excess of SO, 900. That
the defendant Harrison claims now to be
the owner CT said note, but he acquired
such ownership, if at all, after the matu-
rlty thereof and with full knowledge of
ali the facts herein affecting the said note
and trust deed purporting 20 secure the
same.
Nat Bona Eide Indebtedness.
This defendant IS further informed and
o believes and on such information and be-
! 4 charges the fact to be that said trust
{ ID purported further TO secure to the
G.fendapts, Andrew SakS and David May.
a note Tor $4,000 Of date September 9th
3Ss4. due 4inety days after date with eight
pr cent. intereS'. which said note is
made a preferred claim in the second
class undo said trust deed. That said
alleged note TO the defendants Andrew
Saks and David May did not at that time
nor does 1t now represent any bona fide
Indebtedness of said defendant corpora
ton TO said defendants SakS and Nav or
eitheEAlf them. That said defendant Cop
per s3npany was not then indebted TO
said defendants, Saks and May, or either
o. them in the sum of $4,000 or any other
sum, nor did said defendant Copper Com
pany at that time receive from said de-
PENDANTS, SakS and May. or either of
them, any consideration for the said note
This defendant is further informed and
believes and so charges the fact to be
that at the date of the execution and de-
livery Of said deed of trust and Hill of
sale to tbs defendant Hanauer, the de-
PENDANTS, Andrew Saks and David May,
J. u. Snocnbergs 5 W. Pack and Edward
IT. Singer were directors and managing
officers of the defendant Copper Company
corporation and had full charge and con-
troll of all the business property and af-
fairs of said corporation. That the bust
ness OF the said corporation has thereto
fore been the erection Of extensive ore
smelling, reduction and refining works on
the grounds described in said amended
complaint, lying in the county of Salt
Lake, Utah, which works were then in
complete. This defendant further alleges
that al the date of the execution of the
said trust deed to said Hanauer, all work
Of said defendant Copper Company cor
poration was suspended and said uefend-
ant corporation had not funds TO carry
the same to completion, nor to operate
the same. That said defendant corpora
ton was then largely indebted and had
not means to meet its liabilities in the
usual course Of business or at all, and
had ceased to be a going concern, all of
which was known 10 said directors, and
fhere was 10 expectation on the part of
eaid company or its directors that it
would ever &c able again To resume or
AIRY on its business. That said defend
{ corporation was then largely indebted