The copper era and Morenci leader. [volume] (Clifton, Ariz.) 1911-1929, 1913-08-01
BANK TANGLE is
CARRIED INTO COURT.

/ PHOENIX, July 24-Tuesday aft
ernoon a suit was filed in the federal
court against J. T. Tenant by the
Union Bank and Trust company In
the petition it is alleged that IN a
certain transaction contaminated be
| PENDANT presented a bill for and OBJ
tanned securities in satisfaction there
/ of in the sum of S43,106.1S.
The suit is brought by the bank for
the purpose of forcing Tenant to re-
turn the securities of the bank to the
amount stated and in addition a tenn
( pOrary restraining order and tenn
porary injunction is asked for to pre-
vent him from disposing of the Sc
curities or in any way damaging the
| interest the bank claims in them.
The affidavit to the complaint is
signed by j. P. Orme, president OF
the bank, and the suit is instituted
upon the instructions of the bank by
the firm of Sloan, Seabury and Web
sterfelt.
For some time reports have been
heard that things were in a tangle at
the Union Bank and Trust company
and at a recent meeting, 1t is claim
ed, there were some hot words passed
between Mr.. Tenant, who was pres
ident, and the directors, the outcome
The bank has been reorganized sew
eral times within a year. ]. F.
Cleaveland as the first president with
! in that time, organized a million dol
lar trust and mortgage company, and
when Tenant assumed control after
Mr. Cleaveland left, the bank re-
solved to enter the lists of legitimate
banking, but according to reliable
authority the holdings of the stock
or1i1
tions were in no way impaired and it
is believed that they will not be in
the present reorganization.
The petition filed Tuesday is the
outcome of a meeting held by the Of
ficers and directors of the bank last
May At that time, it is alleged,
Mr.. Tenant presented an account for
allowance for himself for the amount
of $43,1O613 and said that it was
for charges in selling certain num-
Der of shares of stock OF the COM
pany According to the complaint,
Tenant also explains that on JAN
uary 20. 1913, he entered into con-
tract with the Union Bank and Trust
company to sell 1000 shares of the
company at a rate that would net the
company $120 per share, but that in
the sale of the stock above mention
ed he had turned over TO the COM
pany the equivalent of $3.50 per share.
The directors of the bank then
passed resolution instructlng {. +.
Mullen and W.. R. Rosa, two of the
directors, to take from the assets OF
the bank securities equivalent to the
amount, which was done. 1t is al
legged that when Tenant made the
statement relative to these matters,
to the directors, he knew them to be
false, but that they were relied upon
by the directors because of the tact
Tenant was president, a director and
one of the largest stockholders In
IN the petition it is alleged that at
no time was the defendant required
to eXpend any money. 1t is also al
legged in the petition that Tenant
statement that he had entered into
contract with the bank to sell 1000
shares of preferred stock to net the
company $120 is also false and that
no such contract was made on Janu-
arv 30. The bank alleges that he
sold the stock at 5000 a share max
ing a large profit for himself.