Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1896-01-15
SENSATIONAL SUIT.
Wants a Receiver Appointed for The
Salt Lake Hardware ".
CHARGES ny Ex.MAsAGgR BAUER.
Alleges That There Is a Scheme on
Foot to Destroy the Institution
10 Ills Disadvantage

Legal proceedings Of startling
character were instituted In tho Third
district court today, ia tue form OF
complaint by Benjamin +. Bauer
against the SElt Lake Hardware Co.,
James T. ClasBey, Il. w. spencer and
Julian h. Clasbsy, In which he ptays
that receiver 10 appointed aui ihst
the business DO wound w sud the
defendants ebjolned from attempting
to exercise ~ pretended ditgetJu any
act for said company.
The complaint T. a volumlnaus one
and was drawn by Dsy q Street,
council for plaintiff. 10 II thu Alloga.
ti9ns are made that the c5mpany nxed
IT, capital stock at $40 900 divided into
$50 SHARES OF tho par value Of slO0
each; that In said articles oi incotpofi.
ton u was provided that there should
be- hvo directors and that 10 be- eligible
Tor the Ciilco OF director, pfesideni,
Woo PRECEDENT, treasurer or secretary,
tue person must be the owner Of at
least ton shares OF the capital stock;
that Of tho capital stock there has been
issued four hundred and six shares anu
no more, OF WHOM James II. Clssbey is
tne owner and holder u one hundred
AMI nlty shares; that the only quail.
led officers anu directors ~ said COM
psuy are the said defendant James 4,
Clntbry and thu plaintiff, that tho de-
isndanA III. w. Spencer and Julian r..
ClasDey claim 10 De, but are Ia Tee. not,
directors on account OF inoligibillly.
Plaintiff further alleges that ho man.
aged and controlled said business from
Is organization until Deem.
Der, 1895, nj which time serlous
dtlicultle, aud Engagements arose
between James n. Ciasbsy ans plain.
TIA, which rniultol In quarfsis and
sisputes 10 the extent that tho buslne,s
was greatly impaired and jeOpatdlzed;
that ila further successful c0ntinuaucs
10 impossible; that the plaintiff lon tue
business In tue hands OF said James II,
Clatbsy, who then aud there Was anu
IL eth anxious 10 have the companySs
affairs closed out and Of not resuming
business; all this because Of tho fact
NNhN kuo uult " luluIe uhTmOuN IL lost,
Tue plaintiff further alleges that the
company is indebted 70 the amount OF
more than $4,000, most Of which Is
due or about ~ become 90; thai there IL
no way by which indebted @is can
be mri except by borrowing. ID sscn a
thipg were possible; that the sctuai
asaets OF tue company do not exceed
1000; that 10 will require time TO cell
the stock 10 advantage And collect out.
standing accounts; that the corpora.
ton In It's present state Ia la imminent
danger OF insolvency and that NJ n
forced sale not enough can DO realized
TO llquidain it, indebtedness
Plaintiff further sets forth that since
this defendant James II. ClaSboy has
taken charge of the business that he
has been borrowing money VI high
rates Of Interest from friends or per.
sons who will stand In with him Ia a
scheme TO consolidate all dob,s due 10
his friends Tor tho purpose Of destroy.
log the interest OF the plaintiff ~ an
owner anu holder Of $4,000 in said
corp ration.
la addition to the charges enumer-
atoj, there are many more equally
Sensational and damaging ~ those
mentioned.