| Show ank Examiner I t Ouster Sought I t In Court Action I Charge Made Hadlock Re Refuses Re Re-I fuses to Remove Leggat From Provo Post LAWYERS TRADE REMARKS Incompetence of Official Is Alleged I Special to 10 The Telegram ram PROVO June 9 The 9 The removal remo ofa of otla ofa a state bank examiner in charge chan e of or a defunct bank is asked ked for the first time in Utah court procedure in a counter claim an and ana cross complaint filed in Fourth district court here Thursday Assertion in open court was made that although Governor George Georgc H. H Dern had asked askea St State Bank Commissioner Commissioner Commissioner Commis Commis- Walter H. H Hadlock to remove Joseph Leggat as examiner in charge of the Farmers and Merchants bank here the bank commissioner had so far failed to do so Proceedings in the court of District Judge A. A V. V Watkins became exceedingly exceedingly exceed exceed- heated during argument on demurrer demurrer de de- de and motions and attorneys representing the bank banc and its depositors depositors depositors tors hurled vigorous and expressive language at one another OPPOSE PETITION Attorneys A. A B. B Morgan and William Witham Wil Wit liam ham Robinson representing T. T N. N Taylor Tay Thy lor br president of the closed closet bank and Alex Hedquist chairman of the de depositors depositors depositors' de dc- committee filed a counter counterclaim counterclaim counterclaim claim and cross complaint Thursday morning This action was in opposition opposition opposition tion to a petition filed Saturday b by Attorney George S S. S Ballif representing representing Joseph Leggat bank examiner examiner exam exam- iner in char charge e. e in which authority was sought to liquidate the bank The claim and complaint ask that Mr Mi Mr Leggat Le Leggat gat b be removed IDS examiner because had not been approved by the court because since his appointment he has opposed re reopening reopening re re- opening of the bank because he has actively hindered the board of directors directors di di- rectors stockholders and depositors' depositors committee in its efforts to reopen the institution because he hc has told individuals individuals indi indi- that investment in the bank would be unsound that he is unfit to act as bank exam examiner ner ASK MORE TIME The petitioners asked aked the court for additional time in which to undertake liquidation proceedings Appointment of Herbert Taylor ex examiner examiner ex- ex in charge of the defunct American Arner Amer ican Fork bank as examiner in charge of the Farmers and Merchants bank is also asked The court was informed by Attorney Attorney ney Morgan that Mr Hadlock had de declared declared de- de dared that would have to be subscribed before he would permit the bank to reopen Mr Taylor asserted as as- that had been subscribed subscribed subscribed sub sub- scribed up to Thursday and that total subscriptions would reach It was at this time Mr Morgan said Mr Leggat's removal had been asked by ay Governor Dora Dern The filing of ot the counter claim and cross complaint was immediately followed fol fol- fol lowed towed by the filing of a demurrer with the court by Mr Bailiff Balli attorney for forthe forthe forthe the bank in fri behalf of or the state In which he asked that the counter claim and cross complaint be stricken He urged that they did not state facts sufficient sufficient sufficient suf suf- to constitute an action for affirmative affirmative aHir- aHir maUve relief Mr Ballif argued that the laws of ot Utah 1921 give the state slate bank commissioner com corn missioner full power to appoint a bank examiner He held hold that the matter is Continued on n Pace aco Three BANK EXAMINER OUSTER SOUGHT Continued Prom From Pace Faco One Oce one in which the courts have no right to o assume power to dictate He was answered by Morgan and Mr Robinson who held that section section sec sec- tion 13 of the laws lav of Utah 1923 empower empower empower em em- power the courts to lo appoint a bank ban k receiver to preserve the assets of a bank Argument consumed the entire forenoon forenoon forenoon fore fore- noon In court at the conclusion o ol 01 1 which Jud Judge e Watkins took the ma mater matler matter mat mat- t- t ter ler under advisement until Friday a at tt t 10 a a. a m. m |
