Article Text
DEPUTY SHERIFF MAKES CHANGE IN JORDAN BANK Cashier Fitzgerald Is Forced Out and Run on Institution !s Continued. FACTIONAL ROW COMES TO A SHARP CLIMAX BINGHAM JUNCTION TROUBLE DATES BACK TO UTAH NATIONAL SCANDAL. (From a Staff Correspondent.) Bingham Junction, April 1.-A serious run on the Jordan State bank ended yesterday after a deputy sheriff had served papers on W D. Fitzgerald, cashier of the institution. forcing him to retire from the position of cashier of the bank, and D John Bloem had become cashier in his place. This forcible change in the executive staff occurred after the bank had yesterday paid out some $8,000 in excess of S the deposits. day The run on the bank began Wednesday after it became apparent that the so-called Nelson faction, controlling a majority of the stock in the bank. had determined to oust W D. Fitzgerald from his position as cashier of the bank For a time it appeared that the run would seriously embarrass the bank. It was stated yesterday that within forty minutes after the run began the bank was out of funds and that the bank refused to cash checks/on the ground that there was not enough money in the bank to cash them President William Aylett said that the bank was embarrassed somewhat for a time and that it refused to cash checks drawn on other banks, but that at no time was the bank completely out of funds. When the run began to assume serious proportions, word was sent to the Utah National bank and Joseph Openshaw, bookkeeper for the Utah National hur ried to Bingham Junction with $10,000 With this amount the bank was able to meet all demands. On Wednesday afternoon a call was issued for a directors meeting signed by O. C. Beebe, Ashby Snow Henry T. McEwan and C. S. Burton. Under the articles of incorporation three directors have the right to call a meeting of the directors of the bark. providing that all of the directors of the bank are notified. President William Aylett did not receive notice of this meeting, and it was suggested by Mr. McEwan that he purposely avoided receiving such notice, but that he knew of the meeting through other sunrees. Fitzgerald Is Ousted, As related in The Herald vesterday the meeting was held and W D Fitzgerald was deposed as cashier of the bank D. John Bloem of the State Bank of Utah was selected to succeed him. Acting on the advice of the president of the bank Mr. Fitzgerald refused to retire from his position as cashier of the bank on the ground that the meeting held by the directors was illegal since all of the directors had not received notice of the meeting Mr. Fitzgerald continued to retain his position as cashier until nearly 3 o'clock vesterday afternoon. when a deputy sheriff appeared with the temporary Injunetion issued by Judge Morse vesterday afternoon. The action restraining Mr. Fitzgerald from remaining in an official capacity in the bank was brought in the name of the Jordan State bank by Henry T. McEwan. and was directed against J W W Fitzgerald former president of the bank. and father of W. D. Fitzgerald, the cashier of the bank In the meantime the minority interests of the bank organized a new bank, of which J. W. W Fitzgerald was elected president and W. D. Fitzgerald cashier William Aylett. president of the Jordan State bank, was elected a member of the directorate of the new bank. which will be known as the People's bank. Before the papers were served on W D. Fitzgerald ousting him from the cashiership of the old bank he had sent to President Avlett his resignation as cashier of the Jordan State bank In spite of this, however the paners were served on Mr Fitzgerald. and he was formally ousted He took the matter with good nature. and remained to assist Mr. Bloem in familiarizing himself with the work. Fight to Go On. The run on the bank yesterday necessarily ceased with the closing of the bank at 3 o'clock yesterday afternoon. The new management stated vesterday that there was enough money available to pay every depositor if necessary and that there was no danger of a failures The developments of the next few days will be watched with interest from the fact that each side is carrying on its fight shrewdly and will probably do its utmost to embarrass the opposing faction The troubles of the Jordan State bank began shortly after the theft of $106.000 from the Utah National bank was reported. After the indictment by the federal grand jury was returned against A. W. Nelson, nephew of Joseph Nelson, the market value of the stock in the Jordan State bank decreased rapidly A W Nelson immediately resigned his position as cashier at the request of the officers of the bank and W D. Fitzgerald was appointed in his place One of the first results of the indictment of Nelson was a factional fight between the Joseph Nelson interests and the Fitzgerald interests Joseph Nelson owned or controlled a large block of the stock almost a majority of the Jordan State bank. Just before the stockholders annual meeting this year Mr Nelson secured control of the stock of the bank paying as high as $250 each for some of the shares. After he had purchased this stock Mr Nelson made arrangements with the State Bank of Utah to take over the account of the Jordan State bank. The stockholders meeting was held. and after an interesting fight the Nelson faction secured the election of a majority of the board of directors. At the meeting of directors J. W W Fitzgerald failed of re-election. and William Aylett Continued on Page 2.
