The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-11-06


issued -, .-----.-------......... 229 500
Iotdl -. 1884 ,S13
The plaintiffs do not schedule the assets
of the company, but assert them to be
s465, 1873, which included the notes due and
mentioned heretofore, the store and ware
house building, and the stock in trade
The assets are thus figured to be s29. 365
less than the liabilities Of the concern.
In alleging that the notes specified are
valueless, the plaintiffs figure that the
company is now virtually S54 365 short of
having sufficient funds to meet all out
standing liabilities.
insolvency Is Alleged.
On this ground the plaintiffs allege that
tue company is insolvent and cannot nay
its bedts -
The charge is made that whitney
Hutcnlns AMI Forbes confederated 10
(rermit Whitney TO use the money and
merchandise Of the company to finance
ne other companies IN which re is
charged with being financially interested
IL Is stated that the books of the com
pahy nave been incorrectly kept, and that
they have been falsified.
one instance OF this alleged Justification
OF accounts is specified as follows:
'On Nov. il, 1904, when interest alleged
10 have accrued on bills receivable but
not collected was by the said last-named
Geo. charged to bills receivable and cred
tied to interest account and at the same
time the sum of $40 236.15 was charged to
interest account and credited to the profit
and loss account"
The defendants are alleged to have COM
mltted many breaches of duty and con-
Quoted the affairs of the company for
their personal benefit and not for the
benefit of the stockholders and creditors
The final clause of the complaint asks
for the appointment of a receiver; asks
that the defendants be restrained from
collecting moneys due to the company,
from mourning Indebtedness, paying no
moneys or otherwise using the funds of
the corporation, and from in any way
carrying on the business of the COM
pany.
Statement by Whitney.
Mattison B. Whitney. president and di-
rector of the Utah Implement company,
was seen at the Commercial club last
night, in company with Hale S. Hutchins,
q co-defendant in the action. and was
asked for his version OF the troubles of
the company which resulted in the filing
of the complaint in the district court yes
terday, charging him with breach of
trust
President Whitney said that he was an
aware Of the filing Of the complaint until
the time it was filed. He said that the
action of the plaintiffs was a complete
surprise to him, as he had thought that
the relations between the plaintiffs and
the defendants had been friendly at all
times
1.-The books of the company are being
audited at this time by ]. II. RumelI." he
said. 'He began work Oct. 10, and has
not yet finished the work.
WAS the auditor put to work on the
books at the request of the plaintiffs?" he
was asked.
YES" was the answer.
did you file any objection to the en-
ployment of an auditor2'
''No: ! filed no objection"
Are the ALLEGATIONS Of the plaintiffs
founded on facts?"
Some of their allegations are true, and
u .~.N,.
the details of the case at this time. I
expect TO retain attorneys at once. and
Wedgwood & Truman will probably rep
resent the defendants in the case"
History of Company.
When asked for information concerning
the company and its capitalization, Presi-
dent Whitney said:
1.-The company was organized Dec. 13,
1898, with capitalization of $4,000. The
stock was issued at par, 500 per share.
creased to the present capitalization,
$500. 600
''Of this amount. 1921 500 has been is
sued al 800 per share. The last increase
in capitalization was about six years ago,
the increase being in the sum of $4,000.
''Of the common stock of the company
| own 1,229 shares; II. s. Hutchins owns
$50 shares, and Forbes owns one share
that are scattered.
81 estimate the plaintiffs holdings as
follows: John G. Sharp, seventy shares,
preferred, John Sharp, thirty-eight shares
preferred: John Sharp estate. fifty shares
preferred; G. l.. Anderson. 151 shares pre-
ferred: J. c. Jensen. ten shares preferred
Samuel Peterson, ten shares preferred
Gustave Anderson, forty shares preferred
Lucy A. Jensen. fifty shares preferred
and NJ. NJ. Miller. ten shares preferred
THE whole trouble is between the own
ers of preferred and the owners of COM
mon stock. / do not wish to state-I do
not know that l can state-just what the
basis of their action is
Changes in Company.
From other sources it was learned last
night that the Utah Implement company
was originally capitalized for $4,000. of
which amount $25 900 was issued. This
was in 1893 upon the Incorporation of the
company.
In 1900 or the year following, the capt.
taliZatiOn was increased to $500 600 and
the stock was divided equally into the two
classes, preferred and common
A few months later an amendment to
the articles of incorporation was filed by
which only the common stock was given |
a vote. the preferred being cut off from
any voice in the management of the
or the control of it's policy
Whitney held the greater part of theI
common stock prior to the adoption of |
the resolution giving the control to the |
stock and the control was thus /
given into his hands