Salt Lake Tribune | 1916-08-02 | Page 16 | Suit is Entered on Stock Transactions

SUIT IS ENTERED ON STOCK TRANSACTIONS William K. Witty of Idaho filed suit in the United States district court yesterday yester-day against Clarence G. Ham berger, Krnest Bamberger and J. A. Greenewald, directors of the original Greenewald Furniture Fur-niture company, to set aside certain stock transactions alleged to have been made by the defendants with the common creditors cred-itors of the defunct firm. As the assignee as-signee of certain creditors, Witty asks the court to decree the action of the directors di-rectors in transferring the stock to be void, and that each of the defendants be ordered to pay him 6 7 J 9 . 6 4 , with Interest In-terest at 8 per cent from November 11, 1914, when the firm was declared insolvent. insol-vent. The complaint alleges 600 shares of stock held by Ferdie Strouse and 350 shares of stock held by the Bambergers were retired by using company funds at the time the firm was alleged to have been heavily in debt. It is charged that the retirement of the stock by the use of company funds brought about the insolvency in-solvency of the lirm.