The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-01-21
DISTRICT COURT.
Application For Receiver For the
Salt Lake Hardware Co.

I
Salt Lake Hardware Co.
The hearing on motion for a receiver
for the Salt Lake Hardware company
at the suit of BENJAMIN F. Bauer. for
mer manager of the company came or
before Judge Hnes Attorneys Dey 4
Street appeared for the plaintiff ant
Attorneys Sutherland & Murphy for the
defendants. the Hardware company
James T.. Clasbey, H. w. Spencer anc
Julia Z. Clasbey.
The plaintiff, who holds ISL shares of
the stock, asks for the receiver mainly
on the ground that serious disagree
ments existed between himself and the
other members of the company, and
that the defendant Clasbey had threat
ened to wreck the company, and that
| 1t is impossible for the plaintiff and
defendants to carry on the business
prohtably owing to quarrels and dis
putes
The defendants deny that plaintiff
was forced to retire from the manage
fment because of dissensions and quar-
rels, but that he voluntarily gave it up,
and that in consequence Clasbey and
Spencer were compelled to take charge
of the business, and are still conduct
ing it to the best of their ability. They
deny that they want to wind up the
company.
Two points, the defendants say. We're
in dispute, one, which was settled ami
cably, was that the plaintiff be allow
ed to acquire more stock in the COM
pany on giving his note in payment of
the same, and the other, which was
never settled, was the demand of plain
tiff for an increase of salary for man
agement from $3.50 to $500 a month
The discussion of this was in progress
without anger, when suddenly the
plaintiff left the company's business.
Defendants deny that the company is
embarrassed or unable to meet ite ~
debtedness as it becomes due. They
allege that the company is prosper Us,
doing a large business and able to meet
all its liabilities. They deny that Clas-
hey borrowed money from his friends
to pay the debts of the company, and
aver that such was unnecessary. Clas-
hey owns $4,000 worth of the stock,
and says it is absurd to suppose he
would try to wreck the company as by
so doing he would be the heaviest
loser. 1t is set up that if the business
is allowed to go on it will be profitable
and to the advantage of all concerned.
Defendants further deny that the
company is indebted to divers persons
to an amount exceeding S55, 900 or in
the company has no means with
which to pay its indebtedness except
by borrowing money; deny that it is
financially embarrassed or unable TO
pay its creditors, though the plaintiff
has, as defendants are informed,
sought to create distrust with the hope
of embarrassing the company: that he
has been instrumental in organizing a
rival company with the intention of
q o in g
business, by which its merchandise
will have to be sold at a sacrifice.
In addition to this defendants make
the serious allegation that, as they are
informed plaintiff, before abandoning
his position as manager, used the
money of the company to pay, prefer
entially, bills to creditors not due and
on leaving overdrew for himself about
81, 295 in addition to a previous over
draft of S904.62 and that he has since
caused distant creditors to present
their accounts for payment: that prior
TO leaving he made extravagant pur-
chases which had to be cancelled: deny
that their present stock is not worth
$4,000; affirm that at invoice figures
IT exceeds more than 100000; deny that
the solvent outstanding accounts do
not reach $4,000; aver that they ex-
coed $4,000; that the company is still
prosperous; that in 1895 it sold more
than 100000 worth of goods at a net
profit of $4,000; deny that they have
borrowed money of late at rates of in
terest higher than heretofore or in
amounts not made necessary by plain
ttff's hostility; deny that it is in immf-
nent danger Of insolvency-a condition
Plaintiff is endeavoring to bring about.
AT the hearing yesterday B. F.
Bauer, S. F. Walker, J. T. Clasbey. II.
A SchWeikh9rt John r E7OrI,o. 80
w. W. Armstrong We're examined. af
ter which the arguments were partly
made and the hearing continued til
this morning.