Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1898-03-07
ANOTHER ATTACK MADE.
The National Bank OF the Republic Al
Icges Fraud In the scott Assignment.


The National Bank OF the Republic.
In accordance with the suggestion of
Judge Hiles, in the Scott assignment,
that any nome onsenting creditor might
file suit In equity to set aside the as
slgnment, commenced action late sat
urday afternoon. The defendants
named are George Nj. Scott a. CO.,
George NJ. Scott, James Glendnning,
II. S. Rumfield, Joseph u. Gallagher,
LILY Park stock Growing association
and Hugh Anderson IA assignee of the
George M. Scott IL company. IL Is
prayed that the deed Of assignment be
set aside and decreed fraudulent. as
against plaintiff and other unpreferred
creditors; that a receiver be appointed
in lieu of the assignee; TINT an ac-
counting be had between the corpora
tlon of George NJ. Scott q Co. and the
officers and directors, and that re-
straining order be issued preventing
defendant Hugh Anderson from dis
posing of the property In the mean
time.
In the complaint the deed of assign
ment Ia set out with the three classes
of creditors and 1t Is alleged that Tor a
long time prior to the making of the
assignment the firm was hopelessly
insolvent. and that the assets, II the
assignment liz allowed to stand will not
do more than pay the first preferred
creditors in full and 20 per cent on the
claims Of the second class leaving
nothing for the creditors in the third
class. to which the plaintiff belongs.
II is further alleged that George NJ.
Scott claims to own individually half
the real estate mortgaged to the Tray
elers' Insurance company. and that the
corporation owns the other half.
II is then alleged that the assignment
was made to dcfraud creditors In the
third class: that IL was the secret in
nf
of the assignment. to get rid of James
GlendlnninE and to purchase the as
signed property from the assignee for
his own benefit, and to conceal and
cover up the alleged fact that George
NJ. Scott had wronGfully used large
sums of the assets OF the corporation
for his own purposes, to the injury OF
this plaintiff and other creditors. 1t IL
further alleged that the directors
vrongfully allowed George NJ. Scott
and James Glendinning to misappro-
pirate funds of the George NJ. Scott
company to the amount of many thou
sands of dollars. sufficient to pay all
the creditors in full. 1t Is also claimed
that 100000 OF the money of the
George NJ. Scott company was diverted
to aid the Lilly Park Stock Growing
association, corporation owned and
James Glendinning. 1t IL further
averred that in the assignment the
| liabilities of George NJ. Scott to the cor
poratlon of George NJ. Scott & Co. were
| concealed and that he was wrongfully
| preferred on claims to the amount OF
| 100000, and that the corporation mort
| gagged Its half of the East Temple
| street real estate to pay Scott's private
debts. The said property, which is
| mortgaged to the Travellers Insurance
| company of Boston. to secure an in
| debtedness OF $4,000. It is alleged. is
worth great deal more than that sum-
and that by foreclosure of the mort
| gage 100000 would be saved to George
| M. Scott, which. under the assign
ment. the creditors would not benefit
| by.
The plaintiff then alleges that the
| $4,000 owing to 1t was secured by 52s
shares Of capital stock of the George
NJ. Scott corporation, and that the
money was obtained In the year 1897
on that security on the representation
that the corporation was solvent.
II is further alleged that George NJ.
Scott wished to obtain the 52s shares of
the capital stock OF the corporation
from James Glendinning. who owned
them, and falling in that, made the
assignment as an indirect means of
| obtaining the said stock.