gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
63abc47c6eb87e2e
Response Measures
None
Description
Receivers were appointed shortly after the suspension and the bank did not resume normal operations; later litigation alleged fraudulent assignment.
Events (2)
1.June 23, 1896Suspension
Cause
Correspondent
Cause Details
New York correspondents refused to honor drafts falling due, precipitating inability to meet obligations and suspension.
Newspaper Excerpt
The Bank of Salt Lake closed its doors this morning and notices were posted that the sole proprietor, J. H. Bacon, had made an assignment to Frank W. Ross for the benefit of the creditors of the institution.
Source
newspapers
2.June 26, 1896Receivership
Newspaper Excerpt
Receivership proceedings... order made last night by Judge Street... for the ousting of Assignee Ross and the appointment of a receiver for the defunct bank. Deputies entered the bank; notice: CLOSED pasted on the door; attachments filed against the bank began appearing in court records; receivers Knox and Jacobs later act as receivers in filings throughout 1896-1897.
Source
newspapers
Newspaper Articles (23)
1.June 23, 1896Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
ITS DOORS CLOSED. The Bank of Salt Lake Crushed to the Wall Today. THE LIABILITIES ARE $300,000 And Assets 8400,000-Uther Banking Institutions in no Way Affected) by the Failure. A great surprise was in store for the general business public this morning. It was caused by the Bank of Sali Lake failing to open its doors for the transaction of business as usual. The rumor that the affairs of the institution had gone Into the hands of an assignee quickly spread and in a very brief space of time had been confirmed. The story of the failure 18 best told in the words of Mr. J. H. Bacon, president and sole proprietor of the bank. To & NEWS representative he said: "The deposite are about $269,000 which with $30,000 of borrowed money will swell the liabilities to about $300,000. The assets exceed $400,000, givIng me a full $100,000 lee way on which to work. Every man and woman doing business with me will not only be paid in full but will receive interest on their deposits as well. Their only loss will be the inconvenience to which they will be temporarily put. All I want is a reasonable time in which to settle and make collections. I have turned every dollar in my possession over to the assignee, Mr. Frank W. Ross, for the benefit of my creditors. I only have 85 cente left, the amount of change that happened to be in my pocket at the time the crash came. My wife didn't even reserve her dower right. Everything we had went for the benent of our creditors, my Sauitarium stocks included. "I organized the bank in February, and until recently It did a good business. I was president and sole owner and will yet re-establish myself in busIness and pay every dollar I owe. The fault is not my own. It is not that of any other man. The times alone are toblame." "Why did you not appeal to the other bankers for assistance ?" inquired the NEWS man. "Well, I thought of that last night," replied Mr. Bacon, "and had I been able to get a loan of $25,000 for only & short time it would have tided me safely over. But I knew it would be bound to leak out-such things always do, for you can't keep them quiet, and then that, too, would have gone; 80 I determined on closing the DOOTH of the bank and making the loss as small as possible." "When did you first decide to suspend business?" "Yesterday afternoon on n tele. graphic demand from New York. I was unable to comply with it and therefore the closing of the doors." A NEWS representative made an ex. amination of the papers filed with the county recorder. The list of assets and liabilities were given in minutest detail and were classified 80 far as the principal division of maseta and liabilities was concerned, but the statement seems to have been 80 hurriedly draw n up as to have precluded any attempt at tabulation or totaling. A large amount of real estate is transferred to the receiver by Mr. Bacon and bis wife and the agreement is made in the latter part of the statement that If any creditors are omitted they shall, upon proper showing, share equally with those listed.
2.June 24, 1896The Wichita Daily EagleWichita, KS
Click image to open full size in new tab
Article Text
WILL BE PAID IN FULL Private Banker Bacon of Salt Lake 14 Sqre That l'e is All Right. Salt Lake, June 22-A private bonk known as the Bank of Salt Lake failed this morning. The liabilities are $250,000, which, it is said, will be paid in full. J. H. Bacon, president and sole proprietor of the bank said: "The deposits are about $269,000, which, with $30,000 of borrowed money, will swell the liabilities to about $300,000. The assets exceed $400,000, giving me $100,000 leeway on which to work. Every man and woman doing business with me will not only be paid in full, but will receive interests on their deposits as well. I have turned over every dollar in my possession to the assignee." Mr. Bacon said be first decided to suspend business yesterday afternoon, upon receipt of a telegraphic demand from New York with which be was unable to comply.
3.June 24, 1896The Record-UnionSacramento, CA
Click image to open full size in new tab
Article Text
BANK FAILURE AT SALT LAKE. Due to Eastern Correspondents Refusing to Honor Drafts. SALT LAKE (Utah), June 23.-The Bank of Salt Lake closed its doors this morning, and notices were posted that the sole proprietor, J. H. Bacon, had made an assignment to Frank W. Ross for the benefit of the creditors of the institution. The liabilities are placed at $300,000, and the assets are valued at $400,000. The cause of the suspension was the refusal of the New York correspondents of the bank to honor drafts falling due to-day. The liabilities are in great part to local depositors. Mr. Bacon says the assets, if properly realized, will be more than sufficient to pay everybody in full. The bank was established in 1888 as a private banking institution, and in
4.June 24, 1896Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
ITEMS FROM NAMMOTH. No Recent Strike at the EmeraidGood Ore in the wansen. Special Correspondence of the NEWS. MAMMOTH Utah, June 23, 1896.The non reported strike at the Emeraid property which was whispered round the city several days ago, upon investigation proves to be false, and there is no truth whatsoever in the matter. A member of the company's staff was interviewed today and be says there has not yet been any ore uninvered at the property. It is reported here that the Swansea Mining company are again in high spirits. From information just received from one of the Swanses staff, he re. ports that a rich body of silver ore was uncovered last Friday evening, the vein being no less than our leet in thickness. This new ciscovery alone ought to cause the Swansea stock to make another jump before the month is out. The government surveyors are busy surveying the Mammoth an: Tintle districts. Tue Ajax company commenced to run their hoist this morsing, and again began the work of hoisting good pay ore. No hoisting work at the mine has been done since the 4th inst., owing to a four-Ineb pipe being laid from the engine room down to the mine. Now this work has been accom. plished everything will run along smoothly at the Ajax property. There was considerable excitement here this afternoon when the news arrived that the Bank of Salt Lake had closed its doors, there being quite a number of depositors here at Mammoth, but when the evening paper arrived NCC 9 o'clock and put a much brighter light upon the state of affaire, the depositors left a little more at ease, and one was heard to remark that be thinks everything will turn out all right. We hope It will. Mr. Costeilo of Salt Lake IS registered at the Mammeth hotel and 18 out rustling for a city cigar fi:m. He is well pleased with the business-like appearance of Mammoth, and feels confident of booking some good orders. D. REES.
5.June 24, 1896The San Francisco CallSan Francisco, CA
Click image to open full size in new tab
Article Text
SALT LAKE SUSPENDS. The Assets More Than Sufficient to Pay Depositors in Full. SALT LAKE, UTAH, June 23.-The Bank of Salt Lake closed its doors this morning and notices were posted that the sole proprietor, J. H. Bacon, had made an assignment to Frank W. Ross for the benefit of the creditors of the institution. The liabilities are placed at $300,000 and the assets are valued at $400,000. The cause of the suspension was the refusal of the New York correspondents of the bank to honor drafts falling due to-day. The liabilities are in great part to local depositors. Mr. Bacon says the assets if properly realized will be more than sufficient to pay everybody in full. The bank was established in 1888 as a private banking institution and in 1892 it was converted into a National under the title of the American National Bank. In 1894 it was changed again to a private bank and under its first title, the Bank of Salt Lake. This is the only instance of a bank failure in Salt Lake during the past two years.
6.June 26, 1896Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
FRAUD IS CHARGED Against the Assignors of The Bank of Salt Lake IN THE SUITS OF ATTACHMENT. Deputy Sheriffs Enter the Bank-Accusation That the Bank's Money is "Cached" Away. Developments in the Bank of Salt Lake failure are the source of much talk on the streets today. The matter 18 creating more of & sensation now than it did when the failure was first announced. Comment on the circumstances surrounding the assignment is very freely bestowed and some of it is not at all complimentary to the promotore of the bank. The friends of the banking institution are very much in the minority, to judge by street talk, while those who do not besitate in charging fraud appear to be greatly predominant. All the attachment proceedings given below, are in the same nature and all charge A Traudulent assignment to beat creditors, and this is set up as a cause of action. RECEIVERSHIP PROCEEDINGS. According to an order made last night by Judge Street in chambers, the litigants in the case of the Geyser Gold Mining company and others against James H. Bacon et appeared in theThird district court this morning in proceedings for the ousting of Assignee Ross and the appointment of a receiver for the defunct bank. The plaintiffs were represented by C. C. Day and C. S. Varian, and the de!endants by Dickson & Ellie, J. W. Judd. C. F. Loofbourow and Booth, Lee & Gray. The defendants' attorneys protested that the papers in the case had been served upon them but a short time and they desired is continuance until tomorrow morning at 10 o'clock in order to give them an opportunity to at least read the documents in question. Judge Street said that tomorrow be was obliged to take his wife, who has been very ill for some time, out of town to a place where also could regain her health, and the necessity being very urgent, he would be unable to hear the case tomorrow, but suggested that if Judge Hiles could be induced to take the matter up it could go before him at the time desired by the defendants. Mr. Varian thought by taking the action before Judge Hiles tomorrow it would necessitate the trial of the case before two judges,as it would doubtless be returned to Judge Street next week, Judge Hiles having a criminal case set for Monday morning. He suggested, therefore, that a continuance be had until Monday morning. "Judge Hiles,"continued Mr. Varian, "may also be interested in this case to some extent, either as a debtor or creditor. Judge Ellis-Judge Hiles, according to the published statement, had four bits in the bank when It busted, and I think be would waive that. SET FOR MONDAY. After agreement between |the attorneyson both sides, Judge Street set the hearing of the receivership proceedings for 10 o'clock Monday morning, unless Judge Hiles can be prevailed upon to take up the matter sooner. MORE ATTACHMENTS. In addition to the attachments Issued last night against the bank, William Ford filed one for $1,317,75; then came W. H. Knox with another for, $1,700. followed by F. W. Hanson with IN claim for $283.22. LAST NIGHT'S SCRAMBLE. There was a scramble last night to get places near the top, 80 far ne priority 18 concerned, in attachments against the bank, and Deputy County Clerk Loomis was kept busy in his office receiving filings until after midnight. M. E. Mulvey succeeded in placing himself at the head of the list, and J. L. May came next for over $18000 of city funds. At 5 o'clock yesterday evening Deputy Sheriff Montgomery attempted to gain an entrance to the bank of Salt Lake but the door Was locked and the blinds drawn. It Was thought that Assignee Ross was in the building and deputies were placed at all entrances to prevent his egress. It was discovered, however, that Mr. Ross was not in and Deputy Steele went in search of him and at 6 o'clock found the assignee and informed him of the attachment proceedings which had been commencedagainst the bank. Mr. Ross refused to admit the deputies to the building and with the assistance of & step ladder, Deputy Montgomery, a little after 7 o'clock, climbed through the transom. He then admitted Deputies Steele and Guthrie and immediately pasted the following notice on the glues panel of the door: CLOSED
7.July 4, 1896The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
The stopping of the Bank of Salt Lake has proved the immediate cause of the suspension of the Eagle Foundry and Machine company and late on Thursday evening a receiver for the foundry company was appointed by Judge Hiles in chambers. It appears that the Foundry company has been indebted to the Bank of Salt Lake for quite a considerable time in the sum of about $15,000. Nearly a year ago C. H. Withey, one of the stockholders, commenced suit for a dissolution of the corporation, but the difficulty was then bridged over and matters arranged in a satisfactory way, but when the Bank of Salt Lake failed it was seen that the Eagle Foundry company could not go on. Mr. Withey then filed a supplemental complaint by his attorneys Loofbourow & Kahn, alleging insolvency, and praying for the appointment of a receiver. The defendants, the other members of the Eagle Foundry company, consenting, the parties went before Judge Hiles and his honor appointed W. H. Remington as receiver and fixed the bond at $10,000. Mr. Remington yesterday qualified with W. S. McCornick and George M. Scott as sureties, and took possession of the property. It is said the foundry company's affairs were in such shape that within a couple of weeks they could have paid off the amount they owed the bank and gone on nicely, but the sudden stoppage upset their calculations and they were forced to take the action they did. Their liabilities are about $20,000, the greater portion of which is owing to the Bank of Salt Lake. The assets, consisting of stock in trade, machinery, etc., are valued at a conservative estimate, at $50,000 and it is said they will pay everybody in full and have a handsome surplus left.
8.July 4, 1896The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
EAGLE FOUNDRY STOPS W.H. Remington Appointed Receiver By the Court. OWED BANK OF SALT LAKE THE SUSPENSION OF WHICH CAUSED THE TROUBLE. Liabilities About $20,000 and Assets Placed at $50,000-Receivers Knox and Jacobs Qualify and Take Possession of Bank of Salt LakeGeorge Butterwood Charged With Arson-District Court Orders and Notes.
9.August 16, 1896The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
THE BANK OF SALT LAKE Report of Messrs. Knox and Jacobs Filed Yesterday. WHAT RECEIVERS FOUND. The Condition of the First Bank of Mercur, A. Deficiency There of Nearly Five Thousand Dollars-Result of the Labors of the Experts, Who Have Been Going Over the Books For Some Time.
10.December 25, 1896The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
TAKING D. & L. STOCK. Creditors of the Bank of Salt Lake Become Mine Owners. Yesterday was a day of activity at the office of the Dalton & Lark company, and a large number of the creditors of the Bank of Salt Lake surrendered their accounts and left the office with Dalton & Lark stock in their pockets, which was valued at $1 a share, and in making the transfer stock, it was specified that the same should be issued when all of the depositors had signed an acceptance Mr. Bacon's proposition. Among the depositors, however, there were a few who refused to accept the proposition. Mr. Bacon had secured the signatures of fourteen-fifteenths of the creditors, and here he was stalled. At length, however, Mr. Rea yielded a point and decided to issue the stock to those who would accept the conditions already stated, and yesterday each depositor who had signed the agreement received the following card: Salt Lake City, Utah, Dec. 23, 1896. Commencing on Dec. 24, 1896, and continuing from day to day until finished, at the Dalton & Lark Mining company's office, room 76 Commercial block, this city, Mr. Rea will, upon receipt of claims properly assigned to him, issue stock to those who have accepted his proposition. I will at the same time and place give you my note and you can hold the stock as security until paid with interest. JAMES H. BACON. This will virtuany settle the question as to Mr. Bacon's ability to settle with his creditors, and it is understood that an application will be made at an early day for the discharge of the receivers at the bank, when it is understood that Mr. Bacon will take charge once again and make an effort to reconstruct the business of the institution.
11.January 2, 1897Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
# The Dalton and Lark.
Work has been suspended on the Dalton and Lark properties during the holidays, but in a few days will be resumed with twenty-five men on the pay roll. It is expected that in the course of the next two months something substantial will be done toward the erection of the proposed concentrating plant, and then the D. and L.'s list of employes will be largely augmented. Creditors of the now defunct Bank of Salt Lake are fast taking Dalton and Lark stock in payment of the bank's debt.
12.January 24, 1897The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
Bank of Salt Lake Assets. The petition of Frank Knox and C. H. Jacobs, receivers of the Bank of Salt Lake, for an order of the court authorizing them to sell the remaining assets of the bank by public auction, came up for hearing before Judge Hiles but was continued until next Saturday.
13.January 25, 1897Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
The Bacon Bank Assets. Frank Kuox and C. H. Jacobs, recelvers of the Bank of Salt Lake, have petitioned for an order of the court authorizing the sile of the remaining assets of the bank at public auction. The hearing will take place next Sat. urday.
14.January 27, 1897Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
# May Files an Answer.
City Treasurer J. L. May and his sureties, W. S. McCormick and J. E. Dooly, filed separate answers yesterday to the action instituted against them by the city some weeks ago, to recover the some of $13 402.66 which was on deposit in the Bank of Salt Lake at the time of the suspension of that institution.
Mr. May denies that any of the conditions of his bond have been broken, and says he is not the absolute custodian of the city's funds, he was simply the bailee and was responsible as such, but not otherwise. He further pleads that he had no safe place in which to keep the funds of the city, and that he deposited them in the Bank of Salt Lake to the credit of the city, believing the bank to be safe and solvent, and that his failure to repay the money was the result of the bank's suspension, and not through any fault of his own.
The sureties make the same defense, and further allege that the bond in question was not approved by the city attorney of Salt Lake, and that it does not run to the city, as required by the ordinances. On the other hand, it is set out the bond runs to "the people of Salt Lake City, in the Territory of Utah," and was not condition for the safe custody of the city's funds, as is also required by the ordinances.
15.March 7, 1897The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
RECEIVERS' COMPENSATION. Work and Responsibility Said to Be Worth $750 a Month. Yesterday application was made to Judge Hiles for an order of the court authorizing the transfer of the assets of the Bank of Salt Lake by Receivers Knox and Jacobs to the purchaser, H. H. Rea, and for an order fixing the
16.March 11, 1897The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
THE FIREMEN'S CASES Hearing on Petition For Writ For Reinstatement, ARGUED AND SUBMITTED R. H. CABELL UNDER ARREST, BUT HE IS VERY SICK. Judge Hiles Fixes the Compensation of the Receivers and Attorneys For the Bank of Salt Lake-T. D. Lewis a Belated Intervenor-Probate Business and General Work of the District Court.
17.May 9, 1897The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
Report Approved. In the matter of the affairs of the Bank of Salt Lake, the report of Special Master George D. Loomis was approved and the former discharge of the receivers, Messrs. Frank Knox and C. H. Jacobs, approved and confirmed.
18.February 12, 1898Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
Court Cullings. In the case of the Geyser Mining company against the Bank of Salt Lake et al. arguments were made and testimony taken today on the motion to compel the attorneys for the receiver to pay to the receiver the $1,300 disallowed as attorney's fees by the Supreme court. Briefs are to be handed in later.
19.February 17, 1898The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
# MISTRUSTED BANKS.
Brown had an abiding mistrust of all banks, and frequently stated among his friends that no bank would ever get his money. His aversion to banks was occasioned by the loss of about $900, which disappeared upon the failure of the Bank of Salt Lake. An intimate friend of Brown's said yesterday that the murdered butcher had an immense pride in the possession of his money, and displayed it on many occasions in a reckless manner. He was in the habit of pulling large rolls of bills from his trousers' pocket when making change for his customers.
Brown had always carried a gun in his pocket as a safeguard against thieves, and boasted that no man could take his money. His confidence in his power of taking care of his possessions is said by his friends to have been increased by the fact that a few months ago he coped successfully with two hold-ups.
# A PREVIOUS THEFT.
This is the second time that Brown has been robbed. Last July $20 was purloined from the store during his momentary absence, and Brown at the time strongly suspected one of his neighbors of having committed the theft.
John McCallister, a young man who was employed in the store by Mr. Brown, stated that on Tuesday there were several people in the store presenting bills for payment. Brown remarked that he did not have enough money and that he would go up to the bank and get some more. He had a safety deposit box in the Deseret National bank and kept some money in there. But he liked to have money with him and usually had about $200 in his pocket.
# HAD FULLY $200.
According to the statements made by reliable witnesses, he paid out $80 to Kahn Bros. and about $22 to Rogers, the cigar dealer. Charles Brown, a brother of the deceased, stated that on the night he was murdered he had in his pocket fully $200, if not more. He kept it in a rather large buckskin money bag, and it was in gold, silver and greenbacks. It was undoubtedly known to the murderers that he had the money and that it was in his pants pocket, for that was evidently what they were after. The money bag and its contents were missing, and a diligent search did not reveal it.
Nearly all of the neighbors knew something of the affair, and all agreed practically upon the time of the tragedy and the number of shots; but as to the perpetrators there are several stories. Mrs. Mayer, who lives two doors east of the place, on Fifth South street, stated that she distinctly heard two shots and then some persons ran past her door, going east. This was followed by the sound of a wagon or buggy, being driven at a rapid pace southward on Second East from the corner. Officer Heath traced the tracks of a buggy from the corner by the store south along Second East street to Sixth South, thence west to State street and along State to Eighth South, where it was lost among the number of tracks in the street.
# SAW TWO MEN RUNNING.
An employee of the Salt Lake Street
20.June 26, 1898The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
Receivers to Deposit $2,000. Geyser Mining company vs. Bank of Salt Lake; Receivers Knox and Jacobs ordered to pay to the clerk of the court $2,000, who is to hold it pending further order of the court as to the allowance of costs and expenses claimed by the receivers.
21.June 29, 1898The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
Deposited $2,000 In Court. Frank Knox and C. H. Jacobs, receivers of the Bank of Salt Lake, yesterday paid to Deputy Clerk of the Court Blair, as trustee, in accordance with the order of the court, $1,000 each to be held pending the final determination of the costs, etc., to be allowed the receivers.
22.July 12, 1899The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
Ex-City Treasurer and Bondsmen Apxious to Close the Account, CITY ATTORNEY ADVISES IT DALTON AND LARK STOCK AND BACON'S NOTE OFFERED. Out of the 2,500,000 Shares In the Mine the City Will Get 53,610 Shares, Worth Ten Cents-Matter Referred to Council Committee On Muncipal Laws. City Attorney Hall showed the council last evening how the municipality could cancel the bad debt owing by ex-Treasurer J. L. May and his bondsmen, J. E. Dooly and W. S. McCornick, growing out of the loss of $13,402.66 in city funds on deposit with the Bank of Salt Lake when it failed three years ago. The settlement, on a basis of accepting 53,610 shares of Dalton & Lark Mining company's stock, worth about 10c asked at this time, and James H. Bacon's note for the amount of the deficit, was advised by the corporation counsel, mainly because the court had sustained the defense of Treasurer May and his bondsmen to the action for recovery brought by the city. The plea of the defense was that the treasurer had exercised reasonable prudence in depositing his funds, and, therefore, as bailee, he was not liable for any loss. The city attorney's communication was referred to the committee on municipal laws, and the probabilities are that his recommendations for settlement on the basis named will be accepted by the council. Defense Pleaded Is Good. City Attorney Hall's communication stated that May's attorney set up the defense that the ex-treasurer had exercised reasonable prudence; that other business men as well as May had cash in the Bank of Salt Lake, and the institution had a good reputation up to the time of its failure. To this defense the city demurred, and the court overruled the demurrer. Mr. Hall said he had looked into the thoroughly and had come to the conclusion that the court's decision was proper and the city could not recover. Continuing, Mr. Hall told of a suit instituted by May as treasurer against James H. Bacon, who owned the Bank of Salt Lake, for $13,402.66, and said a judgment for the amount was recovered. On May 12, 1897, May assigned the judgment to H. H. Ray, receiving therefor the promissory note of Bacon, dated Jan. 13, 1897, and due one year later for $13,402.66. The note was secured by a certificate for 53,610 shares of Dalton & Lark stock. Plan of Settlement. "The defendants May, Dooly and McCornick," Mr. Hall wrote in conclusion, "are desirous of turning over to the city the aforesaid note of said Bacon and said shares of stock as collateral thereto, in full settlement of the aforesaid action against them. "The probabilities are that the stock in the near future will be of considerable value, and my best judgment is that the city should accept this offer and thus be in a position, when an opportunity offers to accept the benefits of the situation."
23.April 26, 1901Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
IN BANKRUPT COURT AGAIN. Bacon Testifies That the Charges of Moon Are Untrue. ALLEGATIONS OF FRAUD. Affairs of James H. Bacon Have Been Heopened-Examination on Before Referee Baldwin. The further examination into the affairs of James H. Bacon, brought on by H. T. Moon, was began this morning before Referee Baldwin. Attorney James H. Bacon, on April 5, 1900, filed a petition in the federal court in voluntary bankruptcy. His petition stated that his liabilities amounted to $528,426.24, of which $129,462.73 was secured with Dalton and Lark, valued at about $13,454.48. The remaining $398,963.51 was unsecured. His assets were put down as amounting to $5,209.50, of which $5,000 was in a life insurance policy, and all was claimed exempt. He had between 530 and 540 creditors and the Bank of Salt Lake and First Bank of Mercur suspended operations. On September 10th last the petitioner was discharged from bankruptcy, but the bankruptcy act provides that a case may be reopened for examination within a year from the date of discharge, providing that a proper showing be made by creditors of the bankrupt. A petition was filed on Monday last by A. T. Moon, a creditor of Bacon to the extent of $8,000, part of which is assigned claim, and the court adjudged the petition to be of such weight that a further examination should be made before Referee Baldwin. Mr. Moon is represented by Attorney H. J. Dininny, and in the petition some rather sensational allegations were made and a further examination of Ba. con, Jeremiah Schenck, D. H. Schenck, Charlotte Hoadley of Chicago and H. H. Rea was asked for. The petition alleged that at the time James H. Bacon filed his petition in voluntary bankruptcy he was in possession of property to the value of $25,000 and over, above the amount stated It in the petition as his entire assets. was further alleged that this property, consisting of stocks and real estate in Idaho and Utah, was concealed from his creditors and held in secret trust for him by the above named parties, who it is asked shall be further examined. In the petition it is alleged that Bacon owned large interests in real estate in Idaho, probably of a value of $20,000, also at least one-half the stock of the American Mining and Trust company a corporation organized under the laws of Wyoming, and that this property was held in secret trust by Jeremiah Schenck and H. H. Rea. The petition states that all these facts may be proven by an examination of the books of the American Mining and Trust company. The Bank of Salt Lake, and the First Bank of Mercur, which have been kept by Bacon. It is further stated that at the time of the former proceedings nothing was known by the petitioner about these assets but that recent transfers of the stock of the trust company by the Schencks to Bacon confirm the allegations. The proceedings were begun "this morning before Referee Baldwin. Twomey and Twomey, representing Ba. con. H. J. Dininny, Jeremiah Schenck. D. H. Schenck, Charlotte Hoadley and H. H. Rea were present at 10 o'clock, and after preliminary marks by Judge Twomey, the examination of Jeremiah Schenck followed. and was continued for two hours when a recess was taken until two o'clock this after. noon. Nothing of a sensational nature occurred and the testimony of the wit. ness tended to show that the allegations made by A. T. Moon were untrue. The examination of Mr. Schenck was continued this afternoon on the affairs of the American Mining and Trust company and Mr. Bacon's connection with that company. He was cross examined by Attorney Dininny and there was quite a discussion concerning the cutting out of a page in Mr. Bacon's private book of expenditures, etc. It
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
