The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-05-10
NONTElUMA TRUST
SUIT WILL NOT
Be TRIED now
Sensational Action Against
Defunct Bank, Brought
Saturday by Receiver H. P.
owen Goes Over to Next
Court Term.

In n way or another through le-
gni channels service was Arranged or
obtained today on all defendants IN
the suit filed saturday afternoon TO
compel restitution to stockholders
the defunct Montezumn Trust com
pany. The case vii not come to trial
at this term.
w. n. Gnlenwatcr. president, and
Frank A. H1bbell. A. y. MrMiIien. J..
G. Bnidridge and w. r. whitney. d.
r~ectore. arc named az defendants In
the action. which IL brought b. tho
receiver. Harry y. owen. Mr. owen
haa retained BurHhau a Coors and
Mayo r. Hickey ~ counsel.
Sensational charges against Mr..
CLEARWATER are made IN the COM
pfaint. n Is alleged that the trust
company was MIXED hy him for his
own benefit and that the other de-
PENDANTS were simply dummy dlrert-
ors who left the president to do as ne
pleased with the trust company'H
business.
At the time Of its Incorporation. il
IL alleged. the trust company had as
sets % 100000, and hat when n
concern was closed IN 1919 q large
portion OF the assets had been lost or
d~issipated through gross negligence
and mismanagcmcRt'' OF n defend
ants rs directors.
II II alleged that through their
the directors enabled ana nor.
United Giilenwater TO make loans to
himself and To corporations Of which
was a stockholder. and to other
persons for his " benefit, large
sums OF Montezuma money withou'
adequate security and largely in ok
ccss Of the which could le-
gally have been lent by the trust
company 20 its wi officers or dire,
ors o. 10 corporations In which they
were Interested" Il Il alleged fur
her. that CLEARWATER. taking advan-
OF the directors ALLEGED neglect.
funds n assets for his own
ana converted large profits.
rightfully belonging 10 the stockhoId-
ers. TO his use. He IL charged
with keeping the books In such a way
~ 20 deceive and defraud the stock
and with causing false and
reports 10 be made to tho
travelling auditor.
on May %. 1911. Mr.. CLEARWATER
II alleged to have lent SbI.O0G OF
Afontezuma funds 10 himself. and
Of the sif.s2I was car
ried on The books as a loan tn NJ. l.
Fox, sii26O was down as a loan TO
.. II. Gardner. sii.2sO was carried
rs a loan to George r. Learned. They
are said TO have given accommoda-
ion notes 10 cover the amounts. but
Gillenwater actually got the
money IN addition 10 $1,000 OF the
loan accredited directly to himself.
md that the loan was ~ carried on
books FOR the purpose 81 ue-
,eiyiug the stockholders and the cor
n" No adequate security. u
" alleged, was given "a secure the
n they were charged off the
books by the cancellation Of stock ~
much less value than the amour;
Tue.
other charges Of alleged high H.
nance are embodied In the complaint.
including the allegation that Gillen-
water lent himself under the guise
~ overdrafts.' amounts which imme-
iiately before suspension amounted
10 tfi.0if25. He gave himself cred
u ON she company's books by cancel
Ing certificates Of stock In the cor
norntion which were Of less value
the mou OF said overdraft.
i Is said.
u iF rccited In the complaint that
he bylaws required the directors 10
meet once a week. but hat they held
lust u meetings between 1908 and
1879 They didn't meet al an after
Iuiy 3, 1904, the receiver asserts.