The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-07-19

James H. BacOn's checkered career
as a financier is again to be placed
under the calcium light. Suit win be
filed in the federal court today accus-
ing him of conceaIing from his creditors
property worth at least s145, 600. A T
Moon, one of the creditors of the de-
funct Bank of Salt Lake and therefore
of Bacon, is bringing action through
his attorneys, Dininny & McMaster, to
have BacOn's discharge in bankruptcy
set aside so the creditors can get ct
some of these assets, which he declares
belong to Bacon.
The Bank of Salt Lake and First
bank of Mercur, both of which were
controlled by James H Bacon, assigned
Gune a 1886 The scheduled assets
%ere S51,6S7-70. and the liabilities were
$3.50, 1855. OF this total S2Z2, 257.35 was
due depOsitors. A large proportion of
the depoSltOrS were poor people who
had savings accounts. Bacon was tried
for violation of the national banking
laws, convicted and sentenced to seven
years imprisonment, but was pardOned
by President Mckinley. April :, 1900
Sept. 10, 1900 was discharged in bank
TUptcy. Between April % and May S
of the present year an examination was
conducted before Referee Baldwin to
determine whether any of Bacon's as
sets had been concealed while he was
going through bankruptcy. The suit
10 be filed today is a result Of this in
vestigatiOn.
Report That Was withheld.
In this connection comes to light an
interesting report of the receivers of
the Bank of Salt Lake. which has up
to the present never been filed and
which has been withheld from the pub
lie. Ii may cut some figure in the suit
to be filed today. The report tells how
the First Bank of Salt Lake was
started on borrowed money and notes.
how later, when the American National
bank was organized. its capital stock
was largely paid for by notes instead
of cash, and gives the details of the
peculiar transactions at the time the
visits of the national bank examiner
were made to cease by a return to the
private bank system. The report also
tells how some of the depositors' money
disappeared, showing item by item how
James h Bacon transferred over $3.50.
000 to his own account in a manner
which the report calls .'unwarrantable.' IS
This report was drawn by J. W. Ed
munds, the expert accountant VINO ex-
amined the books of the bank after the
assignment, but Receivers Frank Knox
and Charles Jacobs decided not to fjIe
it at that time on the ground that it
showed their hand too plainly in the
event of a criminal prosecution. When
Bacon was tried and convicted, how
ever. the report was not introduced.
and it has slumbered until the present.
Bacon's Alleged Assets.
The property which it is alleged in
the present suit that Bacon has man.
aged TO keep through the bankruptcy
proceedings is as follows:
Two hundred fOrty-six shares in the
American Mining & Trust company,
valued at $50 600.
Nine hundred shares Salt Lake &
Hot Springs Sanitarium stock, valued
at $50. 900.
Two hundred fifty thousand shares
Dalton & Lark stock, valued at S25 600.
Interest in a Hawaiian coffee planta-
ton. value unknown.
Interest in the Columbia Banking
company of San francisco, a private
bank; value unknown.
Unknown number of shares in the
Houston Real Estate Investment COM
pany Of Salt Lake
1t is further alleged by Mr.. Moon tina
a note put in by Bacon as part of his
liabilities did not represent bona fide
debt. This note was alleged TO have
been given BacOn's bTOther-in-law. D.
G. Tunnicliffe for S154. 969.3S On this
was a credit Of $4,000. leaving the bal
ance due $104, 969. 80. All of these things
will be cited as reasons why Judge
Marshall should order the discharge
from bankruptcy set aside and the
property in question turned over to the
receiver. Mr.. Moon is a creditor to the
extent Of about $1,000 but it is under
stood that several others of the numer-
gus creditors of Bacon have Joined in
4his effort to collect a part of what is
due them.
Will Probe Bank Affairs
Although some time has elapsed since
the assignment of the Bank of Salt
Lake. it is expected that the affairs of
that concern viii be given q. probing.
The. exact condition of affairs was
never brought out at the time as it is
now by this report of the receiver S
which has been unearthed. The report
traces the history of BacOn's banking
from the time he organized the original
Bank of salt Lake. March S, 1888 until
the assignment. tt states that the orig
inal capital of the bank was $4,000.
borrowed from D. 6. Tunnicliffe. which
was afterward increased to $50. 900 by
notes given the bank by J. H. and II.
NJ. Bacon.
The report drawn by Accountant Ed
munds describes in detail the Organiza-
ton Of the American National bank,
with a capital of $3.50 ,000. Except for
the stock of J. H. and II. NJ Bacon,
the capital stock Of this national bank
is stated to have been paid for by
notes renewed from time to time
James H Bacon. the report says, paid
for the Sill. 900 in stock subscribed by
himself and H NJ. Bacon by crediting
his account with the -capitaI.' and un-
divided profits of the Bank of Salt
Lake and by debiting d. G. Tunni-
cIiffe's account s44, 1925. making the
purported payment total $114,542-07.
Feb. IS. 1898. Bacon decided to con-
tinue the banking business without the
direct supervision of the federal Off
Gals. Accountant Edmunds figures out
that at the time of the change the
American National bank actually mad
a deficiency of S57, 42s.0 3. The way this
escaped the notice Of the natlonal panA
examiner is not recorded
After going back to the private banh
system Bacon had a freer hand and
the report shows how ne awaited nm
self of the opportunities offered Item
nv item are given amounts aggregat-
ing s163. 4S2. IS. OF which. the report
SAVE. they appear 20 be unwarrant-
able"
Strange Transactions.
The report relates some strange
transactions under the heading
Stocks and Bonds. and then goes o.
to relate the method by which tne
/ salt Lake Hot Springs SanitariuiF
company was financed It IS state
that the stock was subscribed BY va
riOus persons. who gave. notes in pay
ment for the S59.0oQ they were TO pay