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RECEIVER ASKED Gamblers Lose On Draw FAIR OAKS AND 000 000 IN SUIT AGAINST FOLSOM BANKS New Deal Is Freeze Out For Nevada Games RENO Dec. 20.-The Ne- longer. It was either pay or see NOTED HOSPITAL PAY DIVIDENDS vada gamblers believe everyone their gambling equipment go into but themselves were dealt royal the van. in the Many proprietors, rather than New Deal. pay the heavy licenses, have moved
Woodland Clinic Battle For Control Is Taken Into Court
WOODLAND (Yolo Co.), Dec. 20. Another gun in the battle for control of Woodland Clinic was fired here to-day when Dr. John Lawson, Dr. Leo P. Bell and R. Lawson, acting on behalf of the stockholders of the hospital institution. filed suit for damages and for the appointment of receiver, against the group now in control. Those named defendants in this, held to be the answer to previous litigation in which number of stockholders on the medical staff of the institution were ousted, are:
Dr. Fred R. Fairchild, Dr. C. H. Fairchild, Dr. H. D. Lawhead; the Yolo County Savings Bank; Stephens, H. Stephens and Elmer W. Armfield, both as directors of the banking institution and of the Woodland Clinic, and as individuals. Heavy Damages Are Sought. Included in the actions prayed for by the plaintiffs are: Damages the sum of $358,450 the appointment of receiver; injunction restraining the defendants from selling, mortgaging or otherwise encumbering or disposing of any of the real or personal property of the Woodland Clinic, Inc.; reduction in the salaries now being paid to the medical staff, which are termed excessive; and for an accounting for the excess value of the institution's property over and above the encumt The complaint filed to-day specifies that the defendants "have unlawfully, wilfully and illegally schemed and conspired together with the defendant, Yolo County Savings Bank. corporation, in violation of their trusts as officers and directors of the defendant corporation, Woodland Clinic, Ltd., in order to cheat and defraud the said defendant corporation, Woodland Clinic, Inc., Ltd., and other shareholders, including the plaintiffs. of all of its real and personal and to pay unlawful dividends and to distribute unlawfully the profits of the said defendant corporation, Woodland Clinic, Inc., Ltd., to the defendant. Fred R. Fairchild.
Bank Is Accused. The complaint charges that the Yolo County Savings Bank. in concert with the other defendants has, "for the purpose of consummatir the acts of said conspiracy and the acts to cheat and defraud these plaintiffs, caused to be elected men constituting majority of the board of directors of the said defendant corport tion in every way subservient to the wishes and will of the said defendants Listed among the complained of the plaintiffs charge that the directors as at present
Instead of improving, his business has been getting worse. To make matters worse, Chief of Police M. Kirkley held joker to win in the last showdown. Business has been getting bad for the that many of them have been lax about the ante J. M. KIRKLEY for license fees. Kirkley's joker was large moving When the city went to collect, the moving van went along The proprietors could bluff no constituted unnecessarily increased the salaries of Dr. Fred R. Fairchild, Dr. C. H. Fairchild, Dr. O. C. Railsback and Dr. Earl H. Gray from $300 per month to $750 per month, payable $300 in cash and the balance when convenient to the directors to pay it, the increase being made retroactive to February 1, 1933.
Bonuses Are Voted. It is also charged that the directors voted an bonus of $1,000 to each of the four doctors The document charges that the directors voted to give chattel mortgage on all of the personal property and equipment of the institution, valued at approximately $100,000 to Dr. Fred R. Fairchild as security for note for $26,000. In October the note was foreclosed for $13,000. Foreclosed, Then Deeded Back. The plaintiffs claim that on June 10th, last, the Woodland Clinic Corporation paid to the Yolo County Savings Bank the sum of $10,250, and that on the same day the bank, acting through its trustees, filed notice of breach of the deed trust the remainder of the debt, $43,500 The property was sold under the deed of trust on October 3rd. their equipment in warehouses to await the coming of new day. Many Are Frozen Out. A survey to-day shows that less then one-twentleth of the games operated here after was legalized in 1931 are still running, and these, their owners admit, very rarely make better than expenses. The same prevails over the entire state Figures released by the state show that license fee receipts dropped off more than 50 per cent during the last fiscal year, or from in 1932 to $132,139.52 in 1933. This compares with the situation in Reno, where license receipts the first eleven months of 1933 only $45,075 pared to $72,450 for 1932 and $92,580 for all but the first two and half months of 1931.
Savings Bank The complaint cites that the four brothers-in-law The principal holders of stock in the Woodland Clinic are listed as follows, with the number of shares held by each: F. R. Fairchild, 340; C. H. Fairchild, 343; H. 324 S. Pulford, 156; W. H. Blevins, 343; R. G. Lawson, 300; 43; Harbinson Estate, 405: F. R and C. H. Fairchild, Blevins, Bell and Lawson, in pool, 823 shares. Armfield, who the president of the Yolo County Savings Bank as well as director of that institution and the Woodland Clinic, in statement denied that there was any intention in connection with the reorganization of the hospital other than to protect the investors. He said that the Woodland Clinic owed the bank about $60,000 prior to the time number of members the hospital staff resigned, that nothing was being paid on the debt, and that the institution was falling financially. As means of protecting the bank's interests, he said, request was made that members of the bank's staff be placed on the directorate of the hospital. In order to further complete the Armfield explained the bank on its deed of trust and Dr. Fairchild foreclosed on chattel mortgage.
It is also charged that on October 27th the County Savings Bank deeded the same foreclosed back to Dr. Fred R. Fairchild under a deed of trust for $43,550. The difficulties over the control of the clinic date back more than year. In October. 1932, Dr. Leo Bell, Dr. Earl Gray, Dr Donald McNeil and Dr. Rulon S. Tillotson resigned. Since then there have been matters of litigation concerning the institution. Family Relationships. The two Drs Fairchild are brothers, as are H. and D. Stephens of the Yolo County
Closed Institutions Will Issue $49,901.82 To Their Depositors
More than 1,400 depositors of the closed Bank of Folsom and the Fair Oaks Bank will receive checks to-morrow representing the second liquidating dividend of the institutions, aggregating $49,901.82. The orders authorizing the dividends were handed down to-day by Superior Judge Peter J. Shields, acting upon petitions submitted by Edward Rainey, state superintendent of banks, and George Walker, special deputy, who has charge of the liquidation of closed banks in Superior California, outside of Sacramento.
Totals 35 Per Cent. The Bank of Folsom is paying 20 per cent dividend, totaling $20,308.23, to 525 claimants in the commercial department. This, together with the first dividend paid last September 29th, makes total of 35 per cent paid to date. The institution also 5 cent dividend, paying amounting to 298 to 658 depositors in its savings department, which, together with the first dividend, makes 13 per cent to date. Totals 35 Per Cent. The Fair Oaks Bank is distributing 15 per cent dividend in the department, totaling $5,295.10, to 240 clients. This, with the initial dividend, also paid last September, means 35 per cent of the deposits have been paid. No dividend has as yet been authorized in the savings department. George Williams, who has charge of the Folsom liquidation, points out the dividends are ble without loan from the RFC.. Pays to RFC. Included in the dividend paid to the Folsom savings dividend of $1,849.12 to the RFC on money the bank borrowed previous to its closing last January 23rd. The institution also has collected on the collateral the bank had pledged to the RFC the sum of $16,576.10 This leaves the bank still owing that body $18,557.10. In addition, the Folsom bank has paid off debts of $10,000 to the Crocker First National Bank of San Francisco, $10,000 to the defunct California National Bank of Sacramento and $29,000 in secured public deposits. Orderly Liquidation. Williams says the dividend is possible because of an orderly liquidation and the refinancing of farm loans by the Federal Land Bank. The statement of the comes and the expenses of the Bank of Folsom shows: Income from all sources, Janu23rd to November 30th, $15,691.87; expenses, including salaries, legal expenses and interest paid on payable and public deposits, $6,627.22 showing net earnings of
