The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-09-22
JOHN B[CK'S DEBTS
Peculiar Transactions Related By
the Former Millionaire.
ASSISTED BY SYNDICATE
HOW MR.. CUNNINGHAM sECUR-
ED BULLIoN-BECK STOCK.
Mr.. Beck Declared That BE Promised
to Pay $15, 900 For the Use of
$24, O00-Indignation of Judge
Thomas Marshal-Still Owes the
Syndicate $4,000.

Syndicate 500, OO0.
The maze of complications and con-
tradictions in the John Beck bank
ruptcy proceedings came before Referee
Baldwin yesterday. Mr. Beck, in his
sensational testimony yesterday. held
forth the idea that he had been the
victim of a set of confidence sharpers.
In many respects the testimony of
Mr. Beck was amazing. Here was a
man who in his time has been worth
81, COO or more. but who couldn't
tell much more of his financial tram
sactions than could a child, whose
memory was dulled and dimmed till
affairs of thousands passed before him
in a wavering mist. The surprising
thing is not that Mr.. Beck has lost
much money. but rather that he has
any left.
There was meeting yesterday at
Referee Baldwin's office of the attor-
neys of the unsecured creditors of Mr..
Beck to learn what were really the Sc
cured and unsecured claims. He
was examined for the purpose of ex-
planning more clearly his various items
of Indebtedness and resources. There
appeared Judge Thomas Marshal, who
represented Taylor e. Stead, Ogden
people, who are creditors for about
$4,000, and A. F. Schroeder and Judge
Twoomey and Judge Zane. who repre-
sented several unsecured creditors.
James A. Cunningham, against whom
MIR. Beck made charges, was not repre-
sented. Judge Andrew Fowat, who
had been asked to appear, refused on
the ground that he would very likely
become witness in the case.
The assets of Mr.. Beck as shown in
his bankruptcy petition are $1.0SS -SO9.
His liabilities are 1928. 943. 43, secured by
assets worth S676,294,10.
Mr.. Beck's Story.
Mr.. Beck, in answer to questions
from Judge Marshal, told what he
could recollect of his mixed financial
affairs. He told how at the time his
creditors pressed him a syndicate was
organized with Josiah Barnett as trus-
tee to pool the Indebtedness. There
were the lions Savings Bank & Trust
company which claimed $4,000, Simon
Bamberger and Simon Eisman, whose
claim was 100000, J. A. Cunningham,
who claimed $24, 900 and Henry Din
woodey, who claimed $1,000. And there
were many other items of Indebtedness
which Mr.. Beck could tel nothing about
He didn't seem to know within $780,
He thought that he owed s2S5000, but
he couldn't give anything of the de-
tails During the noon recess a, state
ment was had from Trustee Barnett,
which seemed to show that the syndi-
cate debt was $249,31S.
Did Some Figuring.
Then the attorneys, with Mr.. Becks
aid, began to figure. They discovered
according to him that $4,000 had been
paid to the syndicate on the Beehive
house mortgage that $751; 600 had been
received on Bullion-Beck dividends,
$4,000 insurance, $4,000 on the sale of
the Hot Springs property and $4,000
on the sale of the Saratoga farm, MAX
ing S1S1, 900. which would leave due a
balance OF, $63.01S..
The syndicate was secured by 81 900
shares of Bullion-Beck stock now worth
$3.50 to Sc per share.
Peculiar Transactions.
His account of the various items in
this indebtedness with James A Cum
ningham showed that there have been
some peculiar transactions, if he knows
what he is talking about.
He said that he had purchased the
Beehive house for $4,000, paying S., 900
down and giving mortgage for the
remainder. Later on the house was sold
under foreclosure for $4,000, which the
lions Savings Bank & Trust COM
pany received, and he lost the house,
Notwithstanding this mortgage on the
property, he thought that he had also
put up the Hot Springs property, worth
$4,000, as additional security for the
payment of the $4,000, but he didn't
remember clearly.
Little by little Judge Marshal drew
from him "a rather curious tale of the
banks transactions in connection with
this property. when $4,000 or $4,000
came due the bank advanced the
said Mr.. Beck. Then 1 gave
the Governor mine as security for that
They sold the mine under
He has always claimed that the mine
was worth 100000, he lost it for IS, 000
Transaction With Cunningham.
His story of how James A, Cunning
ham came into possession of the ST.
goo share of the Bullion-Beck stock is
L owed Mrs. Everhart 1923, goo or s24,-
O00," said Mr. Beck, land she was
pressing me for the amount She was
secured by my equity in the $1,000
shares and she threatened foreclosure
Twas much worried and
To pay DeI, SO L went MT.
to get the money I Of !
fered him bonus of $4,000 and $4,000 |
many times, but he wouldn't let me
have the money. Once when we were |
sitting on his steps and I was worried |
offered him $4,000 bonus and he
agreed to advance me the money"
What" cried Judge Marshall in
He demanded a $4,000 |
bonus to advance you $4,000 or $24
1907"
Yes" said the witEess, in his same |
even and bland manner
well, we'll see,'' said the lawyer, |
with some excitement, "if any court of |
bankruptcy or equity will uphold such |
usury."
II met him in the office Of Bennett, !
darkness, Howat, Bradley & Richards |
o make the agreement. 1t had been |
that / should deliver to him |
ny interest in the 81 600 shares in trust |
md promise to pay him $4,000 for $23.
100 or $4,000. ! forget which. Mrs. |
Sverhart was there and she was willing !
o make the same terms with me.
We'll, before we settled we went out
tide, and on the street Mr.. Cunningham
aid he didn't want a written agree
nent about the trust; he wanted me to
leliver him the stock and trust to his
lonor as a gentleman to return it. He
bought / might be sued and then he
would have to go into court to show
he trusteeship. and he didn't want to
~, ,rl, o. -