The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-12-24
Against Philo I. Farnsworth On
Trial In Federal Court.
CLAIM IS FOR s11O,751
ALLEGED WRONGFUL DETAIN-
ING BY DEFENDANT.
Two Causes of Action Purchase
Price of Property Alleged to Have
Been Misrepresented - Ide Jones
Proves obdurate-Two Complaints
Are Dismissed.

The trial of the case of the Nevada
company against P. T. Farnsworth
was begun yesterday in the United
States circuit court before Judge Mar
shall and a jury, with Messrs. Dey &
Street representing the plaintiff and
Senator Rawlins and Messrs. John NJ.
Zane and Barlow Ferguson for the de-
! PENDANT.
The suit is brought to recover $110,-
741.42 and interest. There are two
causes of action in the complaint. In
the first it is alleged that the COM
pany furnished Mr.. Farnsworth, its
general manager, with 100000 between
July 10 and Aug. "a, 1897, with which
to purchase a stock of merchandise, a
saloon and various mining claims in
Nevada. 1t is then set forth that
Farnsworth purchased the entire prop
erty for SIS, 24S.5S, and that he is in
debted to the company in the sum of
$40, 1912
In the second cause of action it is
set forth that in March of this year the
company gave Mr.. Farnsworth $4,000
with which to purchase for the COM
pany the lone Gold Mining company 5
property in Nevada, and at the same
time sold him 200 shares of its capital
stock for $50, 600, upon the representa-
ton that he had paid the $4,000 to the
lone Gold Mining company. 1t is fu1'-
Their alleged that Farnsworth repre-
scented to the plaintiff company that
the purchase price of the property was
$150,000, and that he received that sum,
inclusive of the stock, whereas he
bought the property for $50, 900, leaving
a balance of $4,000 due the plaintiff.
On the two causes Of action the plain
tiff prays for judgment for $110 75l42
The first witness called was Tasker
L. Oddie, the secretary Of the Nevada
company, who testified that the COM
pany was incorporated under the laws
of New Jersey, and that the meetings
of the directors were generally held in
New York AT one of the early meet
ings of the directorate one of the mem
bers resigned, and Mr.. Farnsworth was
subsequently elected to fill the vacancy,
and was made general manager of the
company. The capital stock was in
creased to $500 600. Farnsworth did not
attend any meetings of the directorate.
James w. McCulloch, treasurer of the
company testified that Farnsworth
owned one share of the company, and
Mr.. Farnsworth agreed to take $50
more shares for a consideration of $25,-
600. which shares are held by a trustee
until such time as Mr.. Farnsworth will
take them up. Mr.. Farnsworth was
general manager of the company, and
received a salary of $500 per quarter
year for his services.
Cancelled checks which had been
sent to Mr.. Farnsworth at
various times to pay for property
bought for the company were put in
evidence. They We're in amounts as
follows: $1,000, $25,OOO $4,000, $4,000,
$50, 600 and $50, 600; total, $215, 600.
Three checks for 5000 each, sent by
the company to Mr.. Farnsworth in pay
ment of salary, were also introduced ia
evidence. as were also three vouchers
receipted by Mr.. Farnsworth for the
three salary checks.
The hearing viii be resumed at 10
o'clock this morning.