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Show MERCHANTS! ; i p Last Crutch, Agreement : With Clearing House, : Is Abrogated 2 Days Before the Big Failure By Ira C. Tichenor f HAT the lato laments! Mr-, Mr-, 1 chants bank hohbletl around on crutches, us it were, for mon thmi four years previous to its lvoeiit demise now seems evident. TbM crutches wer taken away from th limping Institution a few 6n.yn before the death of th hank lt July. Whether tha removal iff the supports rtwulteil In the collapse ! r .i t.i.r. r-.i.i.- f.M . T- j .T . or, whether It demise wh conllere! ' Inevitable and the utiptirt were re- 1 moved In order that the painted tnsti- tutlon mlcht paaa away suddenly and without relapsing- Into a comatose rendition, thereby loning all con- j aclenceneaa, or conwUnc, or whatever It mlRht be called. Is not known. Ths I result, however, was the same. The so called crutch was In ths nature of an agreement, entered into I In February. 1X4, by which a dozen j directors and stork holders of the, bank Insured the Halt lake Clearing , House association and Its various members aa-alnst any loss In settlements settle-ments of balances resulting from dally exchanges. . AGREEMENT SIGNED. The natural presumption Is that such an agreement became necessary In order to save to the Merchants bank Its membership In the clearinghouse. clearing-house. I This agreement was signed February Febru-ary S. 19 M, by the following- on behalf of the- Merchants bank: -John Iln irree. 8. W. Morrison, O. K. Lewis, I Holon Kptro, M. S. Hrowning, L. R. Kccles, If. C. Edwards. Charles E. : Kaiser. C P. Overfleld, R. P. Morris, John Watson and P. A. Sweet. 1 It was abrogated July 6 last, or I two days before the bank was closed I on order of the court. This agreement ' wns worded In part as follows: TEXT OF PACT. Whereas, Paid merchants bank 1s a member of said association and as . , such ha he'fi making cttlwanl through said association of the bal- L ances resulting from daihr exchanges ! Vwith the other members of said aso- i elation and desires to continue to do 1 so. and I "Whereas, We are advised, and the ; fart is that the other member. will refuse said bank the prlvifoge of said association (the right to do so having! accrued under the provisions of sec- 1 iUn 4. article X of the constitution of said assocaltlnn) without and un i less they, and each of them, are so- I cured as hereinafter set forth; J "Now, therefore. In conpideratio, of , the premises and in further consld- 1 eratlon of said members continuing to! honor drafts, checks and other Items 'as is uMuali drawn on said Merchants ( bank, we. the undersigned, do hereby j Jointly and severally undertake and i agree with ench and every member of siiid association thut said Merchants ' bank will promptly make satinfactory settlement with each and every of said members of said association for all daily balances that may become due; and owing by said Merchants hank to, each of said members nf said assocla- t flora respectively w'tli said Merchants' bank, and we, the undersigned, do hereby further both Jointly and sev-i eraJly undertake and agree that we ' will tiold each of bald member of said I association respectively harmless from all loss or damage that may arise through the failure of sold Merchants' ha ak to imrm-dlutely pay to each f said tnemtrM of said association any balance or balances that niHy become! due bv said Merchants bank to them ; or either of them by rnMon of said n daily exchanges through sstd assocla-' N "This guaranty and undrrtrikfng, ' however, shall not apply to any bal- , ances that may become due to any member of said association by said Merchants bank by reason of any i checks, drafts or other orders for the , payment of money drawn upon said Merchants bank, by the state of tU.h or the treasurer of the state, or by ; reason of any warrants issued by said , siHte of Utah, or'its treasurer, or other i fc officers, and presented by any mem- ', Xber of said association to said Mer- 1 chants bank for redemption, purchase. ! or for anv other purpose; and It Is '. further understood that the liability j of the undersigned under the foregoing Instrument shall continue only until sdrh time as any one of said under- ' signetl may give notice In writing to the secretary or In his absence from 1 Halt Jake City, I'tah, to any member1 of the executive committee flf a!j,i an. I social ton terminating lug further lia- ' billty under the provisions of said fore- ; g-nln; Instrument, and that upon the ; giving of any such notice by ny one of She undersigned, this instrument ' shall he terminated at he expiration of the same bunking day tion which , said notice Is served as attove pro- v tried, and thre.tr h EI linhiUty rx -cepi as to tim it- ins therefore cashed by s.'.d banks shall cease and ter- ' initiate and be of no further force end effect , "Th del very of this guaranty to the seer ir- of said association shall oe deem-! to be a delivery of the same to ea.h of s.iid :tnks and thereupon its provision shall accrue to the use . and benefit of each of sa.d banks and each of said banks may sue there- , under In Us own. name." |