The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-02-27
CONTENTION OF FRAUD.


Mr. Thomas Marshall, in opening the
case for the attaching creditors, said
| that in the past and before the assign
ment members of the George NJ. Scott
& Co. corporation had diverted and
misapprcpriated for other uses than
those of George NJ Scott & Co, large
amounts of the money and profits of
| the latter company, thus tending TO
show actual fraud in the making of the
assignment; but it was objected TO by
the attorneys for George NJ Scott & Co
as immaterial and the court sustained
the objection, holding that under the
statute of 1897, such a state OF the
case would not inValidate the assign
ment. That the vice of the assignment,
if any, must be proved to be in the
/ assignment itself: and that the former
misuses of the money of the corpora
/ ton, il any existed, were rot compe-
tent evidence, and not embraced in
one of the five grounds named in the
! statute which might be urged against
the assignment to make it void
SUPPORTING THE PETITION.
In support of the petition al affidavit
made by George NJ. Scott set out that
| the corporation in pursuance of res
olution passed by the board of direct
| ors. asst gned TO Hugh Anderson. That
| the corporation did not at any time dis
! pose OF or conceal its property or any
! part thereof, with intent to defraud its
creditors, and has at no time assigned
I with that purpose, and that the assign
ment was made to Anderson without
any fraud or fraudulent intent. 1t is
set out that the deed does not give a
/ preference dependent upon any condi-
/ ton or contingency or with any power
1 to revocation reserved; that il does not
tend to coerce any creditor to release
or compromise his demand; that it does
not provide for the payment of any
| claim known by the assignor to be
false or fraudulent or for the payment
of any more upon any claim than is
1 justly due: that it does not reserve
] any interest in the assigned property,
or in any part thereof to the assignOr
or for its benefit before all its existing
debts are paid; that ii does not confer
upon the assignor any power which, if
exercised, might prevent or delay the
immediate conversion of the assigned
property to the purpose of the trust.
THE sHERIFF'S REPLY.
The sheriff, replying to the petition
/ CT Hugh Anderson. the assignee, set
out the fact Of the suits entered by the
attaching creditors, their allegations
/ that the assignment was made with
intent TO defraud the creditors, and
z =
claims against the corporation known
! by the assignor to be false and fraud
uIent. therefore, the sheriff asks that
the petition TO dissolve the attach
ments be dismissed
In the forenoon formal proof was
made of the Incorporation Of the COM
pany. and Fl. 5. Rumfieid, secretary
of the company, was examined IN re-
lation thereto.
O. J. Salisbury was examined as to
his claim of $4,000, which he said was
for money advanced and was in every
way just and genuine.
The notes representing the claims of
the National bank of Park City and
several Of the other preferred creditors,
were indorsed by George NJ Scott in
dividually, and an effort was made to
construe these as the private Obliga-
lions of Mr.. Scott, but it seemed that
the corporation had received the bene-
1T of the money advanced in each
case.
THE $4,000 LOAN.
County Recorder Jensen proved by
the records that the mortgage in favor
of the Travellers Insurance company,
given by George NJ. Scott on Jan. %.
/ 1895. for $4,000, money loaned, was duly
/ recorded.
I James Glendinning testified that at
the time of the execution of the mort
gage he was a director and also vice
president OF the corporation of George
II. Scott & ca. and held the same posi-
lions when n assignment was made.
He said the mount of $4,000 in the
assignment put down as owing the
Travellers Insurance company was the
same debt as represented by the note
and mortgage.
The assignment was put in evidence
/ by Judge Dey-
The case Of the attaching creditors
was then rested and the other side
/ opened in support of the validity of
/ the assignment
The secretary of the corporation.
! RumfeId. was called and proved from