Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-08-17
MIDDLE
HEARD IN COURT.
Fitzgerald Eros. Bring Suit Against
Irrigated Lands Co, and
Its Officials.


Porter Fitzgerald and the Fitzgerald
Bros. Land company have begun suit
against the Irrigated Lands company
and its directors, the Price River Ir-
rigation company and directors. the
Spa lding- Livingston Investment COM
pany and directors and the Utah
Banking company, In the Third dis
strict court to throw the Irrigated Lands
company into the hands of a receiver.
The directors Of the companies who
are made defendants In the suit are
as follows:
John Y, Smith, Charles Tying. Van
D. spalding Albert Smith, D. NJ
4Landreth and Thomas Austin as direc-
tors Of the Irrigated Lands company;
Thomas Austin. D. M. Landreth. Vii
& liam D. Livingston, Ira D. Wines and
Charles Tying as directors of the
Price River Irrigation company: Van
Z D. Spalding, William D. Livingston,
Annie B. and Arch Livingston as
directors OF the spalding-Livingston
n Investment company and William d.
Livingston, Van D. Spa1ding, Thomas
Austin, Ira D. Wines, Thomas Webb,
John Y. Smith, D. H. Landreth, 6.
Raymond Johnson, George A. and AL
bert Smith, Richard Jones, Henry n.
Hayes, Charles Tying, James Chris
Hansen and Hart J. Fitzgerald as in
sdiyiduals.
The Fitzgerald brothers allege that
after they transferred valuable lands
and water rights in Willard county
= - H. 4. ,,.tr 1%s In
head of the Price river to the 1rrigat-
+ ed Lands company for 1,649 shares
of stock in the concern, certain direc-
tors il borrowed 100000, executing
notes, therefor to complete these
projects, but that the money was
wasted and the credit of the com pany
impaired. When this situation was A
tors Tying. Smith, and Spalding, with
Livingston, Wines and Austin organic
ed the Price River Irrigation conf
pany to secure the assets of the 1rrl-
gated Lands company and wreck 1t
If possible. In addition to the receiver
the plaintiffs ask that the 100000
worth of notes be declared null and
void.
The complaint sets forth at length
that the Irrigated Lands company
was organized with a capital stock OF
s 100000 divided into shares of 500
each; that the plaintiffs secured the
transfer of lands In Willard and Car
bon counties to the Irrigated Lands
company, receiving 1,649 shares of the
capital stock; and that the land so
transferred was worth more than they
received for 1t; that the Irrigated
Lands company borrowed $4,000 to
complete the projects. but that the
money was dissipated and wasted
that Livingston, John Y. Smith, Al
bert, Smith. Tying and Spalding hor-
rowed more to carry on the work, but
that nothing was accomplished with
this money. In this connection 1t Is
alleged that these directors illegally
contracted debts for the company. It
is further alleged that for a second
100000 which the directors borrw-
ed they agreed to give s225.000; that
Notwithstanding that the contract was
usurious and fraudulent, these direc-
tors endorsed notes of the company
for 100000 and agreed to pay S75,-5
900 additional as bonus to the
parties Who loaned the money: this
amount being also issued In notes.
The plaintiffs charge that there was
al conspiracy among these directors
to secure the assets of the Irrigated
Lands company; that after the Price
River Irrigation company was launch
ed, Livingston was appointed trustee
Of all without consideration and said
| action is therefore void.
The plaintiffs allege that they and
Landreth are, the only ones who own
| stock in the company which has
| been paid for; that the directors have
| issued stock from time to time with
out consideration until there is now
outstanding about $500 shares. these
| shares being held by Tying. John Y. 4
Smith, spalding and Livingston The
Utah Banking company holds 100000
worth of notes Of the Irrigated Lands
| company.
| Since the muddle in the affairs of
| the company work has been suspended
| on the projects. The Fitzgeralds say
| that the company is insoIyent and
| want matters adjusted before anything
| further is done.