The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-03-13
ACTED IN GOOD FAITH
The Defense in the Johnston Con
tempt Proceedings.
ARGUMENTS IN THE CASE
Attorneys Agree That the Defendant
Would Not Be Sent to Jail
Even If He Should Be
Found Guilty.

The contempt proceeding against Alex
]. Johnston, cashier of Clark Brothers
bank. growing out of the Thornton
Thomas receiversnip muddle. came up
for hearing before Judge Clancy yes
terday afternoon, but before the hearing
the attorneys agreed among themselves
that Mr.. Johnston would not need to go
10 Jail even IL found guilty. But for
that agreement there Is no telling what
might happen TO the handsome and pop
ular bank cashier. The matter came up
on the application of r. w. Hubbard,
the former receiver of the Thornton
Thomas Mercantile company, TO compel
the bank to pay his check for s2,S25.39
from the funds deposited by him in the
bank as receiver, and which he got from
the sale of the stock of goods to Lutey
Brothers, who were afterwards ordered
to surrender the goods on the ground
that the receivers appointment and the
sale were illegal and void. While the
money was on deposit in the bank Clark
Brothers, creditors of the Thornton
Thomas company. brought suit for $4,000
and caused the money held by them
selves in trust for the receiver to be at
tached.
Before the hearing yesterday MI
Johnston made his answer to the order
to show cause and set up the claim that
Hubbard, the former receiver, and the
Lutey Brothers. from whom the money
was secured, were not parties TO the
original suit and did not intervene and
therefore the court had no jurisdiction
over the money or over the respondent.
He further alleged that Hubbard never
| was receiver, but, on the contrary. as
! sumed to act as such under a void order
! of the court, and as such pretended re-
| ceiver got possession of money or the
fflt ~
! to about $4,000. which he deposited in
/ Clark Brothers bank, part OF the money
/ being received by him from the sale OF
! stock belonging to the company while
/ he was acting under the void order an-
/ pointing him receiver.
/ About the 18th of last November Clark
/ Brothers obtained a judgment against
4 the Thornton Thomas company, in an
4 action for debt for $5,653.96 and caused
/ writ of attachment 10 be issued and
I was by Sheriff Regain levied on the
money on deposit In the bank. 1t is fur
! Their claimed that at the time of the at
/ tachment Lutey Brothers were in pos
session of the Thornton-Thomas stock,
and had sold a part Of il, and the stock
! was less by about 81, 500 than at the time
they first came into possession of the
/ goods, and that sum should therefore be
deducted from the S2,S25.39 ordered to be
/ returned to them by the receiver In
/ view of the notification of the sale.
A. J. Campbell, in presenting the mat
| ter to the court, argued that Mr. HUB
| bard was receiver de facto and exercised
| all the powers as such officer while he
/ acted although the order appointing
him was afterwards declared void by
| the supreme court While he acted he
was an officer of the court, and Mr.
Campbell cited authorities and decisions
to show that to attach money in the
hands of a receiver is itself contempt
of court and both the person causing II
to he levied and the officer serving II are
liable to punishment.
Mr.. Welcome, in replying, stated thai
his clients the bank and Mr.. Johnston
acted in good faith and without any IN
tent to be in contempt of court lie SAFE
it was agreed that whatever order the
court might make should not go into i'm
mediate effect, as the matter would b'
taken to the supreme court anyway
Mr. Welcome said the receiver should
be treated as trespasser and interlope
and that the Lutey Brothers should iool
to him and his bondsmen for thei
money and not TO the court. Judg'
Clancy announced that he would pas
on the matter next Wednesday, ant
Mr.. Campbell stated that he did no
care to have an order that might caus
Mr. Johnston 10 go to jail.
THE money will always be there,
suggested Mr.. Welcome.
1T probably WILL agreed Mr.. Camp
bell. las long as we can buy $4,000
pictures guess We'll be good for $500.
\