Salt Lake Telegram | 1935-09-17 | Page 12 | Company Sues Former Heads

e T COMPANY SUES I FORMER HEADS r t ft z The Western Vestern r Loan and Building company ompa y Tuesday had filed suito suit sui t to recover from two of f its r former o officers R. R W. W Madsen president pres dent ident and Viggo R. R Madsen vice president and general manager The he complaint filed in Third district cour court alleges alleges' this sum aum was paid as dividends dividends on guarantee guarante L stock owned by the Ule defendants de dc deI I and their families together d cr er with the P P. W. W Madsen Investment Invest Invest- ment ent company compau i ia Vi violation off of o rights of persons who had invest invested d dmore more more than in the plaintiff plaintiff plain plain- tiff company I IThe The defendants know or should have known at the time the d dividend dividend divi divi- i payments were made that the company's assets were depreciating and that that capital funds could not be e restored If payments payment were continued continued contin contin- lied the suit alleges It was wan the duty of the ants the complaint asserts to toe ace ece e that this fund was restored maintained and kept unimpaired The action contends dividends were to have been paid only out of surplus surplus sur sur- fI plus uS nf after cr the capi capital J fund had been protected I The suit alleges es the foll following ving dividends dividends dividends divi divi- to totaling ling were paid on the guarantee stock January lf 15 1930 July 15 1930 87 87 January 15 1931 July 15 1931 and July 15 1932 The complaint alleges the late John JohnT T. T White was vas was associated with the defendants in nt the asserted trans transactions trans trans- a actions and says sas Mr White and the two formed th the executive c committee of the Western Loan and Building company The plaintiff company was vu taken over by the state banking depart depart- department ment in 1933 and later reorganized The complaint filed by H. H L. L Mul- Mul liner attorney for or the company compan explains explains ex ex- plains the action an is directed against the Madsen because of the Ule virtual Impossibility of tracing all sales of the guarantee stock