The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-09-12

Judge Hiles yesterday handed down his
decision in the case of Georgia NJ. Foote
vs.. the Utah Commercial Savings bank
and NJ h. Cummings. in which his honor
Jouad the issues for the Plaintiff
The opinion OF mis- honor reads as fol-
lows; 'aThi5 is a suit h9 plaintiff TO re-
deem $3.50 shares Of the capital stock
OF the Diamond Coal and Coke company
The pleadings and the evidence show that
in the year 1892 the plaintiff had 4 pos
,sessory title under the laws OF the United
States Of So acres Of coal land III Clntan
county, Wyo., tor which an Application
for patent mad been made.
That the piaintin required 81 500 TO pay
for the lana and applied to Cummings,
who WIS the cashier OF the Utah Com
merctal and Savings bank, f0r a loan,
and thereupon Cummings advanced
money and took a deed from Mrs foote,
which, though absolute on its race, was
as 10 an undivided one-haf OF the land
taken as security for the advance OF the
$3.50 and for such other ADVANCES OF
money as Cummings might make 10 MIS-
Eoote.
thereafter. and in 1884 the Diamond
Coal and Coke company WAS formed ana
Wnen formed the 81 acres OF land before
mentioned WAS made TO represent one
eighth OF y $40 shares of the capital stock
OF which one-ha4f, or 6,Z50 shares OF stock
belonged to Mrs Footes as representing
BeT -huOlYi1e0 0De-haaf interest Whlch SLs
had conveyed to Cummings as security
to him as aforesaid and tnerenpon she
pledged 6.256 shares 10 Cummings in lea
OF her one-haf interest in the land.
These. along with the oJher shares OF
the company, were afterwards placed by
an agreement of the stock no4ders, IN
oluQing Mrs. Foote, in escrow, pledged
to the Bank of Commerce of Salc- Lake 10
secure an Indebtedness TO it hy the coal
company of $4,000.
THE 1850 shares with the other shares
remained in escrow till February 1870,
when the coaA company required loan
OF So. 200 more. Mhereupon IL was agreed
between Cummings that he might with
draw these L, 500 shares from the escrow
if he would borrow $4,000 upon it, which
he did, and il WaS agreed that when the
note eyidencing the $1,000 had been paid
by the coal company that these shares
should he retafned to the Bank of Com
merce aid Dy II held aS the other shares.
The company made its note To Cummings
and got the money on II. which ii after
wards paid. but he did not return the
certificate eVidenctng these 12,5O0 shares
as he had agreed TO do but he deposited
it in the defendant bank to secure his
own personal Indebtedness to il.
THE evidence shows that the officers
Of the bank had notice or such knowledge
as should have put them upon inquiry
that Mrs FoDte owned these $3.50 shares
pledge to secure debt due from Mrs.
FOote to Cummings, when it took these
shares WITH other collateral securities uc
secure the debt due ii from Cummings
The evidence shows that s t. Walker
notified Jennings. the cashier of the bank,
before the sale ana that Jennings made
no inquiry about the truth of walkers
statements to any. one except Cummings.
The evidence shows that the stock waS
sold by the bank about May q. 1885, under
an asserted right given by rs contract of
pledge with Cummings. no notice was
given to Mrs. Foote OF the intended sale.
The stock was bought in by Thomas
". Jennings. an officer of lhe bank for
its benefit and 1t now claims TO be the
--'he evidence shows that there is an
unsettled account between Mrs. f'oote and
defendant Cummings
L am of the opinion that the hank
holds these 6,250 shares for the Benefit OF
Mrs. Foote and that if upon an account
ing between herself and Cummings she
shall pay the balance found due from
her TO Cummings or whoever shall be en-
titled thereto. she is entitled to the
certificate evidencIng ESQ shares of the
stock before mentioned
Let findings and Judgment be entered
accordingly.
OGDEN HILES. Judge"
The stock of the Diamond Coal & Coke
company is worth about 81 share so
that the decision means about SIS 900 to
Mrs. F0Ote.