The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-11-26
TRICK OF THE TRADE
Business Methods of a Defunct Hel-
ena Eank haia Public.
TWO SUITS AGAINST 1T
Money Furnished by a Butte Con-
Germ Which IS surprise
to Depositors-Cases In
United ~tates Court.
speeIaI pIsnateh % the standarl.

Special Dlspatch 10 tue STANDARD.
Helena, A0nt., Nov, ga.-The drfunct
First National bank and H. ID. Edger-
ton as receiver were made dtfcndauts
In two actions commenced to-day In
the district court. Louis Stadler and
Louis Kaufman, who compose the
well-knOwn local firm os Wholesale
butchers, were plaintiffs In One VI the
suits. They IT Forth in a complaint
that they had as individuals about
$4,000 on deposit In the hank when Il
failed sept. 3 last, besides an account
OF sllJ kept In the name of the firm.
Last July. not wishing - disturb the
money on deposit which was drawing
) per cent. interest, they borrowed
$4,000. which became due Sept. 2. At
that time they were surprised to re-
ceiye notice frJn the First National
bank of Butte thar their note was held
by II and that Payment was due. They
protested at the payment as they had
not known until then that the note
had been Transferred. They asked the
court for n decree allowing their de-
poslts To the amount OF the note tn
stand as sctoff against the note. or
for Judgment against the First Nation
al hank or this city which would make
their claim preferred above others
against the bank. The suit promises
to be an interesting one. as Il viii dis
close what IS not generally known
that the First National In Helena was
in the habit. ON occasions Of trans
ferring notes 10 the First National Of
Butte when the borrowers. as In the
case of Stadler & Kaffmann. who had
claims against the bank. supposed
they were borrowing from the home In
stitutiOn.
The second suit was brought by
Charles GulgnOn, who. on Aug. last.
gave the First National a bill OF ex-
chlnge for { 400 sterling on London
bank for collection. He alleges that
the First National bank OF this city
sold the bill OF exchange In New York
city and appropriated to its owr use
the money. He asks for a decree which
VIII direct the receiver To hold the
money received on the bill OF exchange
for the benefit of the plaintiff.
Application was made in the United
States court to-day for the appoint
ment OF a receiver for the Helena Con-
sulIdated Water company. The blu OF
complaint gives an exhaustive account
OF the connection of the plaintiffs. j.
s. Morgan and a. G. Waugh OF New
York. who represent the Boston Safe
Deposit a Surety company. and the
water company. The Boston company
owns J00 of the company bonds, 40 OF
which have been negotiated These
bonds are secured by mortgage on
the entire plant Of the water company.
The suit Instituted to-day Is virtually
To forecl0se the mortgage. The COM
plalnt recites that the company de-
fnulted on the interest on the 2i0 bonds
In July. 1894. and failed to pay INSTALL
ments on the sinking fund In July
OF last year as agreed. The prayer il
made for the appointment OF a receiver
and for an injunction to restrain any
Interference with said receiver. or with
his appointment. Judge Knowles set
10 o'clock Monday morning as the time
for hearing the matter.
Tn. time Of the court was largely
taken up this morning with arguments
on the motion to rema M 10 the Jeffer-
son county district court the suit OF
Cummings vs.. the United Smelling x
Refining company for damages. The
motion was to have been argued yes
terday afternoon. After hearing both
sides Judge Knowles overruled the mo-
ton and the plaintiff took exception.
The court also overrulet the demurrer
| OF the defendant company and granted
20 days in which to make answer to
Cummings complaint. Judge Knowles
has adjourned court until Monday.