The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-03-12
THE HEARING ON WHICH Is
POSTPONED FOR FIVE DAYS.
The Defunct Corporation and the
Preferred Creditors Want the As
signment to Stand-Ex-Mining
Recorder Monks Case Will Reach
the Jury This Morning.

ueu TOT nVe Gays 10 give the Dank time
to answer complaints in Intervention
filed by the California Powder Works
the Colorado Fuel & Iron company and
the Revere Rubber company.
At the outset, Judge Dey, of counsel
Tor the National Bank OF the Republic
! offered to submit the petition for the
| appointment of a receiver without ar
gument.
Mr.. Varian agreed to submit it on
the pleadings, except as to the matter
of the claim of the National Bank of
the Republic.
Judge Dey made some objection to
the bond filed by Assignee Anderson.
on the ground that the surety was a
foreign insurance company, but Judge
Hiles refused to consider that unless it
came before the court in proper form.
Judge Dey then asked for five days
continuance to allow his clients to file
answers to the complaints in interven-
ton, and his honor granted the extern
sion.
The attorneys in the case are Messrs.
Dey & Street and Booth, Lee & Gray.
for the National Bank of the Republic;
Dickson, Ellis & Ellis, for the George
NJ. Scott Co.; Bennett, Hardness, How
at, Bradley & Richards, for the assig-
nee; C. S. Varian and Stephens &
Smith, for the intervenors.
THE CORPORATIONS ANSWER.
The answer of George NJ. Scott & Co.,
George NJ Scott, H. S. Rumfield, Jo-
seph Z. Gallagher and the Lily Park
Stock Growing association, parties de-
PENDANT in the suit brought by the Ma
tional Bank of the Republic for the ap-
pointment of a receiver for the corDo-
ration of George NJ. Scott & Co., in lieu
of the assignee, was filed.
In the answer it is denied that George
NJ. Scott was the owner of 701 shares
of the capital stock of the corporation,
or any number of shares greater than
COL. and il is alleged that the other 100
shares standing in the name of George
NJ. Scott are owned by r. c. Chambers.
1t is alleged that the claim of $4,000 of
the National Bank of the Republic was
the individual Indebtedness of James
Glendinning, and was secured by Glen
dinning's 52S shares of the capital stock
of the George NJ. Scott company, cor
poration, and George II. Scott guaran-
teed the payment of the amount to
prevent the bank from selling the Sc
curity, and thus depreciating the value
of the stock of the corporation and i'm
pairing it's credit and standing; that
the act Of George NJ. Scott in guaran-
teeing the Indebtedness was ratified by
the board of directors, and the corpo-
ration was made contingently liable for
the amount.
1t is admitted that George NJ. Scott
individually endorsed the notes, repre-
senting $4,000, due by the corporation
to Hoge. Daily & Co.; $500 due to the
First National bank of Park City;
81 900 due to o. ]. Salisbury, $4,000 due
to Mrs. ]. B. Stanrod, and $4,000 due to
Mrs. T. d. Pitts; but it is alleged that
none of the other directors were aware
of the fact of Mr.. Scott having endorS-
ed the notes, and they were not in
thereby in placing them on the
preferred list.
1t is then alleged that the $4,000 due
to the Travellers Insurance company,
and secured by a mortgage on the real
estate, was the Indebtedness of the cor
poration and not of George NJ. Scott
individually, and that the same is a
first mortgage on the real estate, and
that if the real estate sold for 100000 or
any sum greater than the amount of
the mortgage, the plaintiff nor any
other creditors would not be prejudlced
thereby. It is also denied that Hugh
Anderson, the assignee, is or ever was
the agent of the Travellers Insurance
1t is also denied that it was the Sc
cret intention of George NJ. Scott to get |
rid of James Glendinning. or that the
assignment was made with that object, |
and it is denied that George NJ. Scott !
used funds of the corpora /
ton for his own purposes, but 1t is ad- 1
mitted that George NJ. Scott & Co. ex- ]
pended large sums for the benefit OF /
the Lily Park Stock Growing associa>
ton, and that the association owes the /
corporation S94,O75.22 and that it is |
believed that the association is insolv-
ant.
All the other material allegations of I.
the complaint are denied, and 1t is
prayed that the plaintiffs complaint
be dismissed and that the assignment
to Hugh Anderson be declared valid.
ASSIGNEE ANDERSON'S ANSWER.
The separate answer of Hugh Ander-
;on, the assignee, was also filed. Its
general tenor is the same as that of
George NJ Scott & Co. and the other
and in addition, Mr.. An
lerson says that in his capacity of as
,ignee he will not permit any design
,r scheme to depreciate the value of
he property or to obtain the property
# the company for less than it's value
IT to relieve any property of the cor
)oration or of Mr.. Scott from liability
% pay the debts of the corporation,
,ut that he will in all things pertain
ng thereto be guided by the orders of
he court after a full presentation Of
he facts; also that he will not pay
tut any money for taxes on the prop
,rty mortgaged to the insurance COM
)any or any other claims unless au-
horned to do so by the court He
rays that the complaint of the bank
,e dismissed.
IN INTERVENTION.
The California Powder Works filed a
uit in intervention in the case of the
National Bank of the Republic VS..
George NJ. Scott ct al The complaint
cts up that George NJ. Scott & Co.
yves the plaintiff $35, 129 81, of which
13,046.S9 was preferred. 1t is then al
eyed that the claim of the National
bank of the Republic is not a real debt
ue from the insolvent corporation, but
personal debt of James Glendinning,
nd that the corporation of George NJ.
colt & Co. received no consideration
or the $4,000 claimed by the bank.
The plaintiff prays that the suit of
he National Bank of the Republic be
ismissed and that the assignment be
eclared valid.
The complaints in intervention of
he Colorado Fuel & Iron company and
he Revere Rubber company were filed
i onet complaint. The Fuel & Iron
ompany claims S3.532. 60 and the rub
er company 1928. SO for goods sold
nd delivered, and both are on the pre-
erred list The allegations in the COM
laint are similar to those in the COM
laint in intervention of the California
owder Works, and the prayer is also
} the effect that the assignment be
eclared valid and that the complaint
{ the National Bank of the Republic
e dismissed.
MONKS TRIAL.