The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-07-13
Committee of DepOsitors Re-
turns Scathing Report at
Meeting With Receiver.
BREAKING LAWS CAUSED
FAILURES, SAYS REPORT
Judge Booth and Receiver Point
Way for Payment of Claims
in Two Years.
Special to The Tribune.

Special to The Tribune.
LEHI. July l2.-The depositors of the
Utah Banking company. whose banks at
American Fork and Lehi were closed by
the secretary OF state last December.
held their first regular meeting at Lehi
last night. Several hundred were pres
ent from the half dozen towns in the
north end of Utah county and they all
wanted their money
Judge j. E, Booth. who Is directing
the receiver and attorney In closing up
the banks affairs, had called the meet
Ing and was present, az were Receiver
&. G. Friel and Attorney Jacob Evans.
his advisor. These officials explained the
progress made In un,angling the affairs
OF the banks and expressed an opinion
that the depositors would get their
money in about two years more.
An explanation was made showing why
this delay would be necessary. About
sl56.000 OF the cream" OF the company's
notes and securities had been hypothe-
Gated to secure S96. 900. which the bank
had in turn loaned out again. a small
part OF these preferred creditors have
been paid. but most OF their paper )
time. The receiver Is trying to make
peace with them and his policy Is 10 sat
!stY them at the earliest possible da,e
and get their gilt edged" security back
these secured claims ali paid off by the
end OF 1911 and then will begin paying
dividends To the depositors.
Long Time Notes Cause Trouble.
The banks trouble was caused by lot
OF long time notes running from four TO
payments and Interest. AS these became
due and were paid they became moro
gilt edged and the receiver hopes in
two years to bc able 10 sell them for
enough In addition TO the other notes and
secure the necessary money To satisfy
the deposItors IN full This method. the
attorney stated. would satisfy every
claim OF the deposltors, but would prob
ably leave nothing for the stockholders.
Judge Booth and Attorney Evans thcn
left for their train. accompanied by Re-
organized by electing Alma Greenwood
chairman and ELI j Clayson secretary,
and the fireworks commenced.
4 few depositors had previously met
and elected Alma Greenwood, r. l.. Bo-
lith and j. +. Aydelotte "A committee TO
find out what caused the banks TO go un-
der and to learn II there was not more
speedy way Of getting their money than
that being pursued by the receiver.
Committees Report.
The committees report was a warm
document. IL stated that the officials OF
the banks had broken the law repeatedly
In making loans and allowing oNcrdrattS.
Al one time one company bad an over
draft OF $1,000 and when this was wiped
out II was by questionable notes with un-
lawful Endorsements. The report declared
that the banks had made purchases Of
hundreds OF thousands Of dollars worth
OF notes in the hope OF d deal going
through which would net the banks a
profit OF about 100000. but the slump In
the money market came and with IL the
closing OF the banks.
The committee wanted the depositors
to employ an attorney and compel an
early settlement which would probably
mean the wipinE out OF any possibility
that the stockholders would receive any
thing from the wreck. but would probably
mean a levy upon them Of an extra
$50 00O. But a moro conservative course
was taken by the adoption OF a resou
tion telling the iudg. and the receiver
that the JcposItors desired that the funds
on hand now and those To be collected
be used TO pay of the secured debtors
at the earliest possible date,