The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-11-11
Foreign Corporations Ask for
CritchloW's Appointment as
Manager of implement Co.
THEY RESIST RECElVERSHIP
SAY WHITNEY ACTED IN GOOD
FAITH.

the suit filed few days ago by stock
holders of the Utah Implement COM
pany against the company, and Mattl-
son =. Whitney. H s. Hutchins and Ii.
NJ. Forbes, asking that receiver be
appointed TO take charge of the affairs
of the company.
The intervenors resist the application
of the plaintiffs in the suit, and oppose
their contentious. They declare that
they have no right to the relief for
which they ask. or any relief in court
of equity.
The petitioners in the Intervention
proceeding aver that they are both
creditors of the Utah Implement COM
pany, claiming that the local concern
owes the Mitchell & Lewis company.
limited. $21. 900. and the International
Harvester company of America, $43, 500.
They declare in their suit that the
Utah Implement company is not in
solvent and deny that there has been
unwise speculation conducted by the
officers of the company with company
funds. They assert that the company
has been properly managed and that
all matters over which there is now
any difference can be adjusted without
the appointment of a receiver being
made by the court.
Were Not Deceived.
The intervenprs declare that the
u became stockholders in the company,
or at any other time. They assert that
no information has been withheld from
them or suppressed. They deny that
President Whitney secured his stock in
the company unlawfully, as alleged by
the plaintiffs in their complaint. 1t is
asserted by the intervenors that Presi-
dent Whitney has not diverted or mis-
appropriated the funds of the company
and that the company has not lost
money by Whitney's alleged acts.
The intervenors assert that the per-
sonal notes of Whitney, Forbes and
HutchinS which aggregate S25, 900. and
which are claimed by the plaintiffs to
be worthless, have been accepted by the
Mitchell 4 Lewis company. limited. and
have been placed TO the credit of the
Utah Implement company, reducing it's
Indebtedness from $4,000 to $4,000.
1T is claimed that the court has no
jurisdiction to grant the relief prayed
for by the plaintiffs and that the COM
pany IL solvent, and was solvent at the
time the original suit was filed. They
claim that it would be unwise and ex-
travagant to take the business out of
the hands of the defendants and place
it in the hands of a receiver 1t is as
serted that the assets of the company
at this time are 1926. 900 in excess of the
liabilities. and that if a receiver is ap-
pointed the credit of the company will
be wiped OFT and the business made to
suffer. They say that a salary for a
receiver would be an unnecessary ex-
pense without adequate return.
Misconduct Is Denied.
There are matters and things set
forth in the complaint" says the petit
ton, lin the way of alleged miscon-
duct of said defendant Whitney as
manager of the Utah Implement COM
pany. which your petitioners are in
formed and believe are not warranted
by the real facts. and upon such in
formation and belief and as at present
advised they deny the misapplication
or misrepresentation of any of the mon
eyS of said corporation by said Defend
ant Whitney and that the conclusions
drawn from the complaint are unwar-
ranted by the facts as stated"
Nov. :. according to the petition, Nc
COTniCk & company, bankers, and the
Deseret Savings bank, acting for the
creditors of the Utah Implement COM
pany. agreed that ii would be for the
best interests of the creditors that no
receiver be named. but that John O.
& Critchlow be appointed manager at a
A salary of $3.50 per month, and that
Il Whitney be appointed assistant man.
ager at a salary of $3.50 per month, foI
a period of one year.
They specify that Critchlow and
Whitney are to be assisted and advised
by committee of the creditors of the
y Utah Implement company, comprising
Mccormick & company, S. J. Seal, the
representative of the petitioners, and a
third committeeman to be appointed
by these two.
Agreement is Ratified.
This agreement was submitted TO a
meeting OF the board of directors of the
Utah Implement company and was
tsaf lifted fhpJn
The Intervention was entered by
Judge Morse yesterday. The hearing
of the order TO show cause why the re-
ceiver should not be appointed a;
prayed for by the plaintiffs. was post
poned by Judge Morse until Wednes
day. Nov. IA.
The plaintiffs in the original action
which was filed a few days ago. ar,
John c. Sharp, c. L. Anderson, p. L
Williams. John Sharp and William G
Sharp. as executors of the estate o
John Sharp deceased. and Gustave An
derson, Lucy A. Jensen, Melvin NJ
Miller. Samuel Peterson and John A
sharp The defendants are the Utal
Implement company, Mattison B. Whit
ney. president; II. $. Hudgins, vic
president. and G.. NJ. Forbes, a book
keeper, who is also a director in tn
company.
Among other things, Whitney and tn
other defendants are charged in tn
original complaint with having Fl
nanced and organized the Inds-.enden
Land and Water company with tn
funds of the Utah Implement company
The incorporators of the Independen
Land and Water company, which wa
incorporated Feb. Z. 1906, were NJ. f
Whitney. A. NJ. Allen of Minneapolis
- IL s. Hutchins, @. Nj. Forbes and A
l.. Steele.
The duration of the companys cor
porate existence is fixed at 100 years
and the purposes of organization wer
specified as to acquire water right
and water for general purposes, in
Guiding the generation of power an
the construction and maintenance o
waterways, canals and reservoirs. TIL
company was also to cultivate irrigabl
lands aud construct power plants. Sal
Lake was named as the headquarter
of the company.
The capital stock was 100000. ~