| Show THE IIOSIICK MPANY C Hearing on the Order to Show Cause Before Judge Zane THE FIRE CHIEFS DIAMONDS JUDGE ZANE MAKES A ORDER IN REGARD TO THEM Mrs Engquists Novel Grounds for Seeking a Divorce Justice Halls I Successor Will Be Appointed uy the County qourt Probably on Monday I The hearing In the suit of the First National bank of Deadwood S D vs the Groesbeck company on order to show cause why the company should not be restrained from disposing of its shares and from incumbering other of its shares by giving them as security for a loan of 200000 came on before Chief Justice Zane yesterday morning occupied the greater portion of the day and was continued until tomorrow morning Attorneys W O Hall and E B Critchlow represented the plaintiff and Attorney Arthur Brown appeared for the defendants On motion the First National bank of Park City was made a party plaintiff plain-tiff to the suit tf The order to show cause was issued on a complaint filed on Nov 24 details de-tails of which we re published in The Herald at the time of filing By proceedings taken i Is sought to have a decree of the court adjudging adjudg-ing that the action of the board of directors di-rectors of the Groesbeck company on August 23 1893 in declaring a stock dividend and all acts of its officers and agents are null and void that every defendant holding any shares of stock under the dividend be compelled to surrender the same that they be cancelled and in case any shares of stockj so distributed should not be recovered that the value thereof be ascertained and the defendant directors compelled to respond in damages It was also prayed that the defendants be restrained from encumbering the real property of the corporation by mortgage deed of trust or otherwise pending the hearing and in accordance with this latter prayer Judge Zane at the time the suit was brought granted a temporary restraining order The statement by counsel for the plaintiffs was to the effect that between be-tween the 1st day of Dec 1892 and the 1st day of Feb 1893 they loaned to certain cer-tain of the stockholders of the defendant defend-ant company large sums of money and that they hold as collateral security 1250 of the 12000 shares of the said companys capital stock which the defendants de-fendants represented as being worth 25 per share That since February 1893 by various wrongful and improper acts on the part of the directors and officers of the company the capital has been wasted and impaired and converted to private uses and that the business of the company has been unprofitable un-profitable to such an extent that the shares are not worth more than 15 each I if further asserted that John A Groesbeck president of the company com-pany was permitted by the directors about January 1 1893 to convert to his own use seventy shares of the capital stock of the Deseret National bank of Salt Lake city to the value of 18 200 such stock being a part of the assets as-sets of the Groesbeck company whereas where-as the directors knew that he was wholly insolvent It is also alleged that on August 23 the board of directors direc-tors of the company met and declared a dividend of 26716 per cent per share and that 2530 shares of stock were sares wrongfully distributed as payment to the stockholaer of the dividend mentioned men-tioned when on the said date the company com-pany had no assets and was possessed I of no property in excess of its capital i stock of 5300000 being compelled to borrow bor-row 6000 and that the socalled stock I dividend was declared and paid on fraud of the rights and interests of i creditors I Is likewise claimed that the officers and directors are now negotiating I nego-tiating to obtain a loan in the sum of 200000 and that they intend giving a mortgage or deed of trust on their real estate to secure the same when in fact no necessity exists for borrowing over I 79000 I is to prevent this that the proceedings are taken The defendants deny all the allegations allega-tions and allege that they are abun dantly able to conduct their own business busi-ness That the action was brought at the instance of a minority of the stockholders stock-holders who wish to rule in spite of the majority They also deny that they are negotiating for a loan of 200000 or that they have any intention of so do ing and aver that the plaintiffs have set up no legitimate cause for an action ac-tion in equity The taking of testimony was concluded con-cluded when the court rose and the arguments ar-guments will be made tomorrow Short Orders F W Christiansen vs St Marks hospital et al demurrer of Burton Glee et al withdrawn Jesse Maggenetti vs Harvey Hardy et al decree of foreclosure for 1166 and 50 attorneys fees W S McCornick guardian vs A lI James et a1 decree of foreclosure and sale with 10 per cent attorneys fees David Dalgleish vs Caroline Leith et a1 demurrer overruled and ten days to answer Phelan Hays vs James W Pit et 31 demurrer withdrawn and twentyone days to answer Ann Hudson vs Andrew Ammedson et al demurrer overruled by consent and leave to amend complaint William Schade vs McKenzie et a1 motion for judgment withdrawn Mary Tyffe vs Arthur Wilde et al judgment and foreclosure for 210610 attorneys fees 25 John J Smith vs Agnes L Thompson Thomp-son et la1 default fof defendants Vance and Lynch ntered Sidney Tomney vs Adelaide Hamp ton et al order made appointing H E Booth guardian at litem for minors I C N Parsons a petit juror was excused |
