The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-06-14


up before Judge Hiles yesterday morn
irs, on suit in equity to have the as
signment set aside. The National Bank
of the Republic is the plaintiff, and the
corporation of George NJ. Scott & Co.,
George III. Scott, James Glendinning,
II. S. Rumfield, Joseph E. Gallagher, the
Lily Park Stock Growers association
and Hugh Anderson were made defend
ants, and the California Fuel and Iron
company, and the Revere iiubber COM
pany appeared as iatervenors.
Messrs. Dey & Street and Booth, Lee
& Gray represented the plaintiff,
Messrs. Dickson. Ellis & ellis for the
defendants, except Hugh Anderson ana
James GlendinnIng, Messrs. Bennett,
Hardness, HoWat, Bradley & Richards
for Hugh Anderson, the assignee OF the
Scott company Messrs. Varian & Var
ian for the intervenors, and Mr.. VIII
liam Mckay for James Glendinning.
In the complaint the deed OF assign
ment is set out, with the three classes
of creditors. and it is alleged that for
u long time prior to the making OF The
assignment, the firm was hCpelesSly in
solvent, and that the assets, if the as
signment is allowed to stand, will not
do more than pay the first preferred
creditors in full, and rs per cent on the
nothing for the creditors in the third
class, to which the plaintiff belongs.
1t is further alleged that George NJ.
Scott claims to own individually nall
the real estate mortgaged to the TRAY
elers' Insurance company, and that the
corporation owns the other half.
1t is then alleged that the assignment
was made to defraud creditors in the
third class: that it was the secret in
tention of George NJ. Scott, by means
of the assignment to get rid of James
Glendinning, and to purchase the as
signed property from the assignee for
his own benefit, and to conceal and
cover W 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
is further alleged that the directors
wrongfully 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 $4,000 of the money of the
George NJ. Scott company was diverted
to aid the Lily Park Stock Growing
association, a corporation owned aad
controlled by George NJ. Scott and
James Glendinning. 1t is further
averred that in the assignment the liza
bilities OF George NJ Scott to the cor
poration of George M. Scott & Co. were
concealed, and that he was wrongfully
preferred on claims to the amount of
$4,000, and that the corporation mort
gagged its half of the Main street real
estate to pay SCOTS private debts. The !
said property, which is mortgaged to |
the Travellers Insurance company of |
Boston, to secure AN Indebtedness of |
$40, 900, it is claimed, is worth a great |
deal more than that sum, and that by |
would be saved to George NJ. Scott, |
which, under the assignment, the cred |
itors would not benefit by.
The plaintiff then alleges that the |
So, goo owing to it was secured by 52S !
shares of capital stock of the George |
ID. Scott corporation, and that the
money was obtained in the year 1897 |
On that security, on the representation
that the corporation was solvent.
Finally, ii is stated that George Nj.
Scott wished to obtain the 52S shares
Of the capital stock OF the corporation
from James Glendinning, who owned
them, and, failing in that, made the
as an indirect means of
the said stock.
AT the hearing yesterday, Messrs
James Glendinning II. s. Rumfield, H
J. Mcmillan. II. V. Meloy, George NJ.
Scott and Frank Knox were examined.
rhe testimony chiefly related to the
outline business method of the corpor-
alton OF George NJ. Scott e. Co., and
IS to how the books were kept with
citation to George NJ. Scott individually,
md the Lily Park Stock Growers as
ISOLATION.
The interyenors. who are preferred
reditors, directed their efforts in SIP
'ort of the validity of the assignment.
The taking of testimony was con-
luded little before 5 o'clock. and the
ase was submitted without argument
nd taken under advisement by Judge /
lilies.