The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-03-06


of Salt Lake. George Arthur Rice and
others were given leave to intervene in
the suit brought by the Geyser Min
ing company against the bank and to
make H. H. Rea a party defendant. In
accordance with this permission the
suit was filed in the Third district
court
In the complaint it is alleged that
when the Bank of Salt Lake failed it
was indebted TO the plaintiffs in the
sum of $5,2S1.16 and that j. H. Bacon
made a fraudulent assignment with
intent TO defraud his creditors and Sc
cretly withheld and concealed from the
assignee and the receivers and from
the knowledge of his creditors and the
public large amount of the assets of
the bank. The assets alleged TO have
been withheld are said to consist of
money and chooses in action of the
amount of not less than $4,000.
1t is further set up that Immediately
after the appointment of the receivers
James H. Bacon and II. II. Rea, who
is now a business associate of Bacon,
conSpired to cheat and defraud these
intervenorS and other creditors of the
bank and that in pursuance of the al
legged conspiracy they formulated d
was TO purchase from the creditors
their claims against the bank and to
pay for the same with notes executed
by Bacon and secured by stock of the
Dalton & Lark Mining company. and il
was publicly announced through the
newspapers and privately stated to a
number of the creditors that Bacon
had honestly turned over all his assets
and all the assets of the bank to the
he Of
ors, and il was stated that Bacon was
utterly unable TO pay his debts except
by such a compromise as that pro-
posed; that he could procure no cash
to settle his Indebtedness and that he
could procure from Rea not to exceed
two shares of Dalton & Lark stock to
be given as security for each dollar of
his Indebtedness and that the only
chance for the creditors to get their
money was to assign their claim TO Rea
on the terms proposed and that if they
would do so it would enable Bacon to
resume business and pay his debts
ACCEPTED THE PROPOSITION.
The intervenors allege that being ig-
norant of the state of facts existing
they accepted Bacon's note for $5,2S1-16
secured by 1852 shares of Dalton &
Lark stock, which they now offer TO re-
turn.
The representations made to them,
they allege, were absolutely false; also
Bacon did not fully account for his as
sets to the receivers and that the Dali
ton & Lark stock pledged to him and
Rea as security was not worth more
than liz cents a share.
UNJUST DISCRIMINATION.
1t is then alleged that Bacon has not
acted fairly and impartially with his
creditors, he having settled with many
Of them on a basis of three and four
shares of Dalton & Lark stock instead
of two shares and in other cases has
paid a large portion of claims in cash
and given absolute security for the re-
mainder of such claims. 1t is also
alleged on information and belief that
Bacon has in many instances settled
in full with creditors out of the cash
alleged to have been retained by him
and not turned over to the receivers
and that in every instance wnere cred
itors have refused to accept the terms
OF settlement proposed by him and Rea,
he has eventually secured the transfer
of the claims TO Rea by the payment
of money and giving such security as
the creditors demanded.
II is further set up that all the cred
itors of the bank have transferred their
claims to Rea and that Under the terms
of the sale of the assets said assets
will be turned over to Rea by the re-
ceivers and at the same time will be
handed over the books of accounts
and documents necessary to the prose-
cution of suits which have been COM
menced by the receivers against the
Salt Lake Sanftarium company and
others to recover large sums of money.
Recovery in these suits, it is alleged,
is probable if they are prosecuted. and
the estate would be largely benefited
thereby.
The intervenors pray that II. H. Rea
be made a party to the action; that the
be allowed TO reScind their
agreement TO compromise; that the re-
ceivers. pending the hearing, be di-
rected to hold the bank books and rec
ords and that the intervenors be per-
mitted to participate in any dividends
that may hereafter be declared for the
benefit of creditors of Bacon and the
bank.
E. B. Critchlow is the attorney for
the plaintiff.