The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-05-02

tons in which officers Of the bank were
interested as officers and stockholders,
which were losses to defendant bank.
The loan to the Cache Valley Land &
Cattle company in the sum of $4,000
was an ineXcusable affair of this kind,
all its officers except one being officers
of the bank
The loan by Theodore Robinson of
some $1,000 without security about the
time Of the assignment was an affair
of the same unjustifiable character
The court classes a number of other
transactions as being irregularly and
negligently conducted, and saws now
the facts of this last have been made
public, judgment denying forfeiture
OF the banks charter would be taken
as judicial approval of such bank
ing methods and the court should, for
this reason if for no other, exercise a
Judicial discretion and decree a for
feiture.
The court states that although the
directors were leading business men of
Ogden and responsible, they made the
mistake Of trusting the banks affairs
almost entirely to one or two men
No directors have been elected since
the assignment in 1893 and but one
meeting has been held since that time,
which he thinks would, of itself be
ground for forfeiture.
IdhluS INTO consideration Otner
circumstances he says it was the (sup-
posed voluntary act of the bank that
the business cease and the property be
transferred to the assignee. subject to
the control of the court.
After speaking generally Of the
misuse of corporate powers the court
says the defendant corporation has
voluntarily Invested itself Of corporate
capacity by mismanagement and as
H. 60; Id ell An
conditions upon which ii received its
charter; it in other words has failed
to live uD to the fundamental law Of
its being and is incapable of exercising
its corporate functions.
Then comes the decree, which is: The
decree in this case may be entered in
favor of the plaintiff and against the
defendant for the forfeiture of all the
rights, privileges and franchises and
charter of the bank and for its disso-
luton to take effect when its affairs
are wound up and for costs of court
herein. AS to the other two motions
in the case Of Albert Laid ct a.. VS..
the same defendant and heard and
submitted at the same time with the
case, the motion of the plain
tiff TO require the receiver to dispose
Of the residue of the property at once
at public sale may be denied. A forced
the property and the matter of a sale
can safely be left to the discretion of
the receiver aided by the advice and
suggestions Of the interested stock
holders. The motion on behalf Of the
defendant to discharge the present re-
ceiver and direct him to transfer the
residue of the property to the defend
ant corporation may be denied with
out prejudice, to renew motion at the
time the objections by defendant
TO the report of the receiver is heard
before Judge Rolapp. My own
view being that at that time some one
should be appointed or continued as
who will be agreeable to the
argest number of stockholders. and /
who can cheaply manage, care for and ]
dispose Of the property now on hand, /
Ind after seeing that all the debts are /
paid, including the $4,000 now due and /
secured by mortgage, distribute the
proceeds to the shareholders. In my /
opinion this will be preferable to turn
ng the property over to the corpora
ion. Both motions then may be over
moving parties.
This practically disposes of the cele-
,rated Citizens bank case, which has
,een in litigation since 1898. One of the
Lttorneys stated last night that at
east $4,000 had been used up in costs
md that where one of the depositors
ost anything the capital stock origin
lily put into the bank had practically
Melted away. He estimated that the
.ssets would now no more than pay
he debts.
The bank was originally capitalized
or $50, 900.