The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-04-02
DEPUTY SHERIFF
MAKES CHANGE
IN JORDAN BANK
Cashier Fitzgerald Is Forced
Out and Run on institution
Is Continued.
FRACTIONAL ROW COMES
T0A SHARP CLIMAX
BINGHAM JUNCTION TROUBLE
DATES BACK TO UTAH MA
TIONAL SCANDAL.
lFrom a staff Correspondent

From a staff Correspondent
Bingham Junction, April IA serious
run on the Jordan State bank ended yes
terday after a deputy sheriff had served
papers on W. D. Fitzgerald. cashier Of the
institution. forcing him to retire from the
position of cashier of the bank ana ~
John Bloom had become cashier IN MS
place This forcible change IN the eNecu-
tive staff occurred after the BANK hau
yesterday paid out some 5000 in excess
of the DAYS deposits.
The run on the bank began Wednesday
after it became apparent that the so-calieu
Nelson faction" controlling a major1F
Of the stock in the bank. had determined
to Dust ". D. Fitzgerald from his posi-
ton as cashier of the bank. For a time
it appeared that the run would seriously
embarrass the bank II was stated yes
terdav that within forty minutes after the
run began the bank was out of funds and
that the bank refused 90 cash checks on
the ground that there was not eH0uSh
money I'm the bank to cash them Fresl-
dent William AViett said that the bank
was embarrassed somewhat for q time,
and that IL refused 10 cash checks drawn
on other banks, but that at no time was
the bank completely out Of funds-t
When the run began TO assume serious
proportions. word was sent to the Utah
National bank. and Joseph ODenshaW.
boOkkeeper for the Utah National. nun
ried to Bingham Junction with $1,000
With this amount the bank was able 10
meet all demands.
on Wednesday afternoon a cali was is
sued for Il directors meeting. signed Toy
O. G. Beebe, Ashby Snow. Henry T. Nc
Evan and e. :. Burton. Under the arti-
cles Of Incorporation three directors have
the right to call a meeting Of the direc-
tors of the bank. providing that all Of tde
directors OF the bank are notified Presl-
dent William Aylett did not receive no
tice of this meeting. and 10 was suggested
by Mr.. McEwan that he Durposely avoided
receiving such notice. but that he knew
Of the meeting through other sources
Fitzgerald Is Ousted,
As related in The Herald YESTERDAY. the
meeting was held and W. D Fitzgerald
was deposed as cashier of the bank. D.
John BlOem Of the state Bank OF Utah
was selected to succeed him. Acting on the
advice Of the president OF the bank. Mr-
Fitzgerald refused to retire from his pO-
sition ss cashier of the bank on the
ground that the meeting held by the direc-
tors was illegal since an Of the directors
had not received notice of the meeting.
Mr.. Fitzgerald continued TO retain his
position as cashier until nearly O'Clock
yesterday afternoon. when deputy sher-
if appeared with the temporary injunc-
ton issued by Judge Morse yesterday az
ternoon- The action restraining Mt. Fitz-
gerald from remaining I'm an official ca
pacity I'm the bank was brought IN tie
name Of the Jordan state bank by Henry
Y. McEwau. and was directed against J
Is. W. Fitzgerald. former president of the
cashier of the bank
In the meantime the minority interests
Of the bank organized new bank. of
which J. ". w. FITZGERALD was elected
president and W. =. Fitzgerald cashier
William Aylett. president Of the Jordan
State bank, was elected a member Of the
directorate of the new bank. which will be
known as the Peoples bank
Before the parers were served on ". D.
Fitzgerald. OUsting him from the cashier
shin Of the old bank. he had sent 10 Pres
dent Avlett his resignation as cashier Of
the Jordan State bank. I'm spite of this
however the panars We're served on mr..
Fitzgerald. and he WaS formally ousted.
He took the matter with good nature. and
remained to assist lTr. El0em in familiar
izing himself with the work.
Fight to GO On.
The r-In ON the bank yesterday ucces-
sarily ceased with the closing Of the bank
at O'Clock yesterday afternoon The
there was enough money available to pay
every deDOsitOr If necessary, and that
there was no danger of failures The de-
LelOpments of the next few DAYS VIII he
watched with interest from the fact that
each side is carrying on its fight shrewdlv
and will probably do its utmost TO zmbar-
rasS the opposing faction
The troubles of the Jordan State bank
began shortly after the theft Of S106 000
from The Utah National bank was re-
ported. After the indictment By the fed
tial EfdU0 july was returned AGAINST A
". Nelson nephew OF Joseph Nelson. the
market value of the stock in the Jordan
State bank decreased rapidly 4. W. Nef-
son Immediately resigned his position as
cashier at the request or the officers OF
the bank. and W d Fitzgerald was ap-
pointed IN his Mace.
One of the first results Of the indict-
ment Of Nelson was "a factional fight be-
tween the joseph Nelson interests and
the Fitzgerald interests. Joseph Nelson
owned or controlled d large block Of the
stock-almOst "a maJ0rity-1f the Jordan
State bank. just before the stockholders
annual meeting this year. Mr.. Nelson Sc
cured control Of the stock Of the bank.
paying as high as 900 each for some o.
the shares. After ne had purchased tfis
stock Mr.. Nelson made arrangements
with the State Bank c. Utah to take over
the account of the Jordan State bank,
The stockholders meeting was held. and
after an interesting fight the Nelson fac
ton secured the election Of a ma oritv
Of the board Of directors. At the meet
ing of directors J. w W Fitzgerald
failed Of reelection and William Aylett
Continued on Page ?.