OCR Text |
Show Vim IFlPLEfINT: CO.; ' SERIOUS CHARGES MM eompany for tht furtherance of their own credit. - S . . The complainants to the action are John C. Sharp, C. X Anderson, P. L. Williams, John Sharp and William G. Sharp, as executors of the estate - of John Sharp, deceased; Gustavo Anderson, Ander-son, Lucy A Jensen, Melvin M. Miller, Samuel Peterson and John Sharp.- It is charged that Whitney did" no$ pay for the capital stock be now owns in excess of fifty shares, but so conducted conduct-ed the business that it paid for,. 1189 shares that he owns.' A bill asking that a receiver be ap pointed to take charge of the effects of the Utah Implement company was filed in District court yesterday afternoon. The court is asked to hold an accounting, account-ing, dissolve the company and enjoin Mattison B. Whitney, Hale S. Hutchins and G. M. Forbes, the defendants to the action, from collecting any of the money mon-ey of the company. ilt is charged that Mattison B. Whitney, Whit-ney, who is president and a director of the company, and the other two defendants defend-ants have so conducted the business of the company as to use the credit of the - It is further averred that the books have been so kept and controlled that it is impossible to ascertain Trho are the owners of the capital stock. The complaint declares that Whitney used the name ahd credit of the com-, pany in organizing and financing the Independent Canal and Beservoir company com-pany on Muddy creek, Emery county. Later it is alleged be founded the Emery Em-ery Land and Water company, which took over the business of the Independent Independ-ent Canal and Keservoir company. In the past two years, it is asserted, the Independent Canal and Reservoir company became indebted to the implement imple-ment company to the extent of $31,000; that notes of the canal company amounting to $15,140 we.re indorsed by the implement eompany, through Whitney Whit-ney as president, and placed with the Deseret Savings bank as collateral for a loan of $10,000 to the implement company. These notes, it is alleged, were first credited to the canal company and charged to bills receivable of the Utah Implement company and then credited cred-ited to Whitney's personal account. It is charged that the defendants, who compose the majority of the board of directors, accepted the following notes in payment for the indebtedness of the canal company to the implement company: Whitney issued a personal note for $12,500, payable one year after date; Hale S. Hutchins, a note, payable to the company, for $4500, and a note from G. W. Laingin favor of the company com-pany for $8200. It is alleged the defendants confederated confed-erated together to allow Whitney to nse the funds of the comnanv to finance his own concerns, and that their acts were not known to the other directors. It is charged that the books have been tampered with; that the company is insolvent and indebted to the extent of $494,859. The debts of the company are McCornick & Co., $30,000; an overdraft, $25,716: First National bank of Park City, $2000; Deseret Savings bank, $10,000; Winnebago National bank of Rock Island, I1L, $18,000; to various persons, $800: mortgage on store and merchandise, $30,000; notes on merchandise merchan-dise accounts, $61,828: open accounts, $79,669; on preferred and common stock issued, $229,600. The assets of the company are declared de-clared to be $465,438. More than $35,000 worth of the company's com-pany's notes are declared to be worthless. |