The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-24

j. A Cunningham yesterday filed il
the district court a separate answer in
the case of E. w. Wilson, trustee in
bankruptcy of the estate of John Beck
VS.. ]. a. Cunningham, Josiah Barnett
ct al
The answer prays for judgment and
decree of the court to the effect that he
is owner Of the mining stock in dispute
and holds the shares clear from all
claims of the plaintiff as trustee in
Bankruptcy of the estate of John Beck,
and that the court decree that an &C
counting be taken of all the sums of
money paid by him at the time of the
purchase OF the equity of John Beck in
the stock, as well as all sums paid by
defendant in discharging the liens on
it; that the total amount of such pay
ment, with interest, may constitute a
lien in favor of the defendant, and that
he be decreed to hold the stock as Sc
curity for the payment of the amount
of such lien; and that the trustee in
bankruptcy be decreed to pay and dis
charge the said lien, and in default of
such payment, that the stock in ques-
ton be sold under the direction of the
court.
Allegations Denied.
Mr.. Cunningham denies that he ac-
cepted the proposition of Beck that he
would advance any sum or protect the
stock under the purported trust agree
ment, or hold the interest of Beck in
said stock as security, or subject to the
redemption by Beck on payment of any
sums advanced by him or the sum of
$4,000 as a bonus to this defendant. The
answer further denies that a transfer
or bill of sale of the stock was en-
tered into by John Beck and defendant,
with the purpose of hindering or de-
frauding the creditors of Beck, or that
it was held in secret or other trust,
subject to redemption in pursuance of
said agreement.
On the other hand, Cunningham as
serts that he did. at or about the time
set forth in the complaint, purchase
absolutely 1000 shares of Bullion-Beck
& Champion Mining company stock,
and since that date he has been abso-
Lutte owner of it, free from claims of
John Beck or his creditors. Defend
ant denies the assertion that at the
time of purchase or at the present day
that the 900 shares are worth the
sum of $306, 600, or any sum exceeding
S4.25 per share.
Cunningham states that dividends to
the amount of $4,000 have been paid
upon the said Bullion-Beck & Cham
pion Mining stock since the making of
the said trust agreement; that of that
amount $4,000 had been paid thereon
prior to the purchase of said stock by
defendant, and that three dividends
(S15, 300) have been paid to him since
the discharge by him of all liens upon
said stock; and the total amount re-
ceived by Josiah Barnett, during the
existence of the trust agreement and
applicable to the payment of said in
debtedness of Beck, was $4,000. The
defendant Cunningham further asserts
that the. whole Indebtedness on the con-
tested stock has been fully paid to the
trustee
History of Transaction.
Coming down to a history of the
transaction, the answer furnishes
statement to the effect that on the 18th
day of May, 1898, he purchased of John
Beck all his right to 81, 600 shares of the
capital stock OF the Bullion-Beck q
Champion Mining company for VA
54s. IS, payment being made at time OF
purchase. The stock was then subject
to the trust agreement set forth in the
complaint and in the possession of 10
siah Barnett, trustee. That at the time
of the purchase the stock -yas held by
Trustee Barnett as security for the IN
debtedness of John Beck, under the
terms of the trust agreement. amount
ing at that time, all told, to S297, 255.2O
and that the total aggregate interest
accruing upon the Indebtedness was
more than $1,000 per month.
The defendant alleges that s64, 900 was |
realized by the trustee during the con-
tinuance of the trust agreement. from |
the dividends on said stock, applicable
to the indebtedness. The defendant |
further AYERS that sSe,749.60 was real
lied from the mortgages given by John |
Beck; that subsequently the defendant |
advanced the sum of s195, 17S.1S, being |
the balance remaining due upon lien
upon the stock; that the final payment
was made by defendant on Aug. 16,
1899, whereupon Trustee Barnett hand
ed over the stock to defendant, free OF
ali membranes.