The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-06-29

The oleadings and evidence in the
case showed that on April so, 1892, John
T. Gflmer since deceased, was indebted
TO Wells, Fargo & &C. in the SUM of
about $4,000 and that TO secure the
payment of the same he pledged 200,-
600 shares Of the capital stock of the
Bertrand Mining company, 14,G75 shares
of the Highland Mining company, 5,7S3
shares of the Deadwood Terra Mining
company, 1884 shares of the Stewart
Mining company and also certain real
estate in Salt Lake.
On April 80, 1892, Gilmer made his
viii and bequeathed to defendant,
Catherine Belcher, all his estate, in
trust for his wife, Mary Z. Gilmer,
after paying his debts. Gilmer died on
May g. 1892, and an Inventory of the
estate showed the property pledged TO
Wells Fargo & Co.'S bank TO be worth
S22l. 0l6.
At the time of his death Gilmer was
indebted to w. S. Mccormick in the
sum OF $23. $50 and to Nathan Thomp-
son in the sum of $11,154 which latter
was assigned 10 Mccormick & Co.
The mining stock, while Wells. Fargo
Co. held H. yielded large dividends
which were applied to the credit of
Giilmer on the amount he owed the
bank.
Mrs. Belcher the executrix, is the
sister of John z. Dolly, the cashier
and general manager of the Wells.
Fargo bank in Salt Lake City, and
Mrs. Belcher was at the time employed
in the bank as a clerk
On August 26. 1895, Wells, Fargo &
Co, without notice, through John e.
Dolly. the agent of Wells, Fargo & Co,
sold all of the stocks on the pledged
contract. The testimony showed that
no one was present at the sale but Mr..
Dooly, Mrs. Gilmer, and her attorney;
that no discretion was exercised by the
executriX as to the time and manner
of such sale. although advised of il,
but the sale was conducted by the
agent of Wells, Fargo & Co. and Mrs.
Gilmer. whose interests We're hostile
and adverse to the estate and to the
claim of plaintiff and other creditors
Of the estate.
CHEAP MINING STOCK.
The opinion says: That at such sale
Mrs. Gilmer became the purchaser of
the stocks, buying the Bertrand stock
for 81: the 1854 shares of the Stewart
Mining company for ST. when, as the
evidence shows. The dividend receipts
on these shares from April 80. 1892, TO
May "A, 1897, aggregated $12,320.9S- The
Deadwood Terra stock was bought for
s3,i69S0 and 14075 shares of the High
land was bought for SS3.S53.59 which
the undisputed evidence shows is and /
was worth 1921. 500.
That the aggregate amount for
which Mrs. Gilmer bought these several /
parcels of stock was SS7 ,32539. That
the amount of balance then due Wells, |
Fargo & Co. on the Gilmer indebted |
ness was but SCI, 21954. leaving differ
ence between the amount for which I
these were sold to Mrs. Gilmer and the !
Indebtedness of the estate, of $26,1O5.S5
in its favor.
Notwithstanding this, certain real |
estate in Salt Lake county described |
in the complaint, was in like manner as |
the stocks heretofore mentioned on |
November /, 1895. sold by Wells, Fargo !
& Co. and its agents to Mrs. Gilmer |
for $4,000, which the evidence shows |
was worth $4,000"
MONROE SALISBURYS NOTES.
Part of the Indebtedness of Gilmer |
n Wells-Fargo's bank was a guaran- |
tee for the payment of three promis- |
sorry notes for $36.4SS.23, each executed I
by Monroe Salisbury to the bank.
On this point the opinion says that |
the evidence shows that Wells. Fargo
& Co. with the consent of Mrs. Gil
mer. appropriated S64.46469 and S12.-
S6070 interest on the same of the Mrs
Gilmer bids on the property sold and
from other funds and assets of the es-
ldkt. 10 A-dL an dSSQItltu QElltltutN III
the Monroe Salisbury Indebtedness.
His honor further finds that such as
summed appropriation was made before
suit for foreclosure of the property in
Illinois securing the notes, was be-
gun. and that such suit was not begun
rntil two years afterwards, and that
Wells. Fargo &, Co allowed over S25.-
900 Of interest to accrue thereon, and
further that Wells, Fargo & Co. with
out the knowledge or consent of the
eXecutriX, gave releases TO Monroe Sal
isbury, releasing certain property from
the lien of the mortgage, such real es-
tate released being of over $4,000 in
value. The delay in bringing the suit
against Monroe Salisbury constitutes
such laches as discharges the estate of
the testator from liability TO pay any
part of any deficiency which might
arise after judgment against Salisbury h.
and foreclosure of the mortgage, and
that by the release of part Of the
Salisbury mortgaged property Wells.
Fargo & Co. has disabled itself from
complying with such condition prece-
dent and has thereby discharged the
estate Of the tesIator.
a BADGE OF FRAUD.
The opinion further says: q find
from the evidence that the sales to
Mrs. Glider We're intended TO defeat
the claims Of Mr.. Mccormick and M-.
as well as impose upon the
estate an illegal burden. namely. the !
discharged contingent liability for the i
Monroe Salisbury Indebtedness The !
inadequacy Of the bids Of Mrs. Gilmer
to the value Of the property. whilst
they may not be so grossly inadequate
as to necessarily imply fraud. is
badge Of fruad, and a circumstance
tending TO show ar intent to charge
the title Of the property Of the estate
and Withdraw it from the claims of !
Mccormick and Thompson.
The payments Of S64, 464.69, with SIP
$500 intel est thereon from April 80
1882, 10 August IS. 1855. to pay an as
sUmed deficiency of a judgment not
yet obtained against Monroe Salisbury. ?
and in violation of the pledge assign ;
ment, is as against plaintiff fraudulent
and void.
The evidence shows that the prop
erty of this estate is worth much more
than 100000. Mr.. o. ]. Salisbury, a
witness of sound and conservative
judgment. testified that the 1903
shares Of the Highland stock was
worth and is now worth $40 per share;
at that price these shares alone are ..
worth 1921 500 and ii is plain
the transactions We're intended by the
parties TO be effectual 10 defeat plain
tiff's claim against the estate
SALES SET ASIDE. }
His honor therefore ordered DEGREES
entered setting aside the sales OF prop
erty and subjecting the property 10
plaintiffs claims, 10 tacitly affirm the
sales as between Wells, Fargo & Co.