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HomeMy WebLinkAbout1954-03-29 352 Bozeman, Montana March 29, 1954 Pursuant to written call and legal notice by the Mayor, the City Commission of the City of Bozeman met in s~'ecial session in the Corrunission Room, City Hall Building, on Monday, March 29, 1954, at 1:00 o'clock f. M. Present were Mayor Lowe, Commissioner Erwin, Commissioner Healy, City Attorney Lovelace and City Manager Henderson. In the absence of the Clerk of the City Commission, the City Attorney was requested and did record the minutes of this meeting. The followine proceedings were had: I Mayor Lowe stated that the pUr~ ose of this special meeting was to consider proposals and offers of final settlements to complete recoveries of funds due to embezzlEll1ents of Donald L. Henry. It was now shown that offers of settlement from all parties concerned in the matter were not ready to be made a t this time but woul d be ready to present to the Commission wi thin 24 hours whereupon it was moved by Corrwissioner Healy, seconded by Commissioner Erwin, that this meeting be recessed until 4:00 o'clock p. M. on Tuesday, March 30. 1954 and the motion was oarried by the following Aye and No vote: those voting Aye being Mayor Lowe, Commissioner Erwin and Commissioner Healy; those voting No, none. Meeting Called To Order From Reoess The meeting was called to order from recess by Mayor Lowe at 4;00 0' clock P. M. on Tuesday. March 30, 1954. Present were Mayor Lowe, Commissioner Erwin, Commissioner Healy, City Manager Henderson, City Attorney Lovelace, Clerk of the City Commission Shadoan and Mr. Howard Casey representing U. S. Fideli ty and Guaranty Company. Mayor Lowe then advised the Commission and those present that, before any proposals of settlement were offered or any payments thereunder offered, he wished it to be clearly understood tha t, since the Ci ty of Bozeman had determined that the resp ective sureties of M. E. Henderson and L. G. Shadoan were liable on thei r resI,ective principals' bonds, and since the City of Bozeman had made dema.nd upon the I said respective sureties of M. E. Henderson, City Manager and L. G. She.down, Director of Finance, and not upon the subject principals, the City Commission would not grant or execute any releases or receipts to such principals in consideration of payments by said sureties, but would only grant and execute releases and receipts to the sureties involved upon their respective standard forms. Henry Case -- Release to Commercial National Bank The City Attorney presented a Release to the Conwercial National Bank, which had been discussed at the regular meeting; of March 24, 1954, and stated that this Release contains an indenmi ty clause indenmifying the Commercial National Bank and its insurer against any suit to recover further on the check of the City of Bozeman, No. 12003, dated June 29, 1953, in the amount of' $6,600.00. He suggested that the City Commission might wish at this time to inquire whether or not there is any intention on the part of either City Manager Henderson or Director of' Finance Shadoan of bringing any action against the Commercial National Bank for any further recoveries in this matter. City Manager Henderson stated that, if the offer made at this time by the Commercial National Bank in the amount of $2,000.00, the offer of the Hartford Accident and Indemnity Company to pay $1,572.31 on his behalf, and the offer expected to be made by the United States Fidelity and Guaranty Company to pay $15,723.06 are accepted, they will be full settlement of losses and expenses caused by the embezz1e- I ments of Donald L. Henry and he has no intention to take any action against said bank or any other person or firm or to make or attempt to make any further recoveries in the matter. Director of Finance Shadoan stated he has no intention of bringing any action against the Commercial National Bank in regard to tlle aforementioned check. Henry Case -- Offers and Acceptance of Final Settlements The following statement was presented and read: (see next page) '~ -'l ' a~ Shortage thru embezzlements of Donald L. Henry . . . $82,052.91 Less cash recoveries and John French, Jr. note . . . 63,646.85 Net Shortage to date . . . . . . . :fi>18,406.06 Costs paid by the City of Bozeman in marshalling assets . 889.31 Net loss due embezzlement as of this date . . $19,295.37 There was presented at this time a draft on behalf of the United States :Fidelity and Guaranty COlnpany, Baltimore, Maryland, in the amount of $15,723.06, together with releases, approved as to I form by the City Attorney, from the City of Bozeman to the United States Fidelity and Guaranty Company releasing the Uni ted States Fidel i ty and Guaranty Company in full on the bond of L. G. Shadoan, Director of F1nance, and there was also presented to the City Commission a draft of Hartford Accident and Indemnity Company, San Francisco, California~ in the amount of $1,572.31 together with releases~ approved as to form by the City Attorney, releasing the said Hartford Accident and Indemnity Company in full of all liability on the bond of Maurice E. Henderson, City Manager, and there was also presented a Bank Money Order on the Commercial National Bank of Bozeman, Montana in the amount of $2,000.00 togetiler with releases, approved as to form by the City Attorney, releasing the Commercial National Bank and its insurer of all liability on account of City of Bozeman Check No. 12003 paid on an unauthorized signature. An addition of these drafts and Bank Money Order show the entire sum of $19,295.37 tendered to the City of Bozeman in full payment of the balances outstanding due to the embezzlement of Donald L. Henry and all costs in connection therewith~ whereupon, it was moved by Commissioner Healy, seconded by Commissioner Erwin, t}~t the drafts and bank money order be accepted and the Mayor and the Commissioners and the Clerk of the Commission be~ and the same are hereby, authorized to sign the releases, and all of them, for and on behalf of the City of Bozeman and that a copy of each release I be filed as a part of the records of the City of Bozeman, and the motion was carried by the following Aye and No vote: those voting Aye being Mayor Lowe, Commissioner Erwin and Commissioner Healy; those voting No, none. Assignment of Claim Against Muntz Car Agency & Donald L. Henry to United States hdeli ty and Guaranty Company and Hartford Accident & Indemnity Company It was moved by Commissioner Er"Win, seconded by Conunissioner Healy that, in consideration of the foregoing payments by the Uni ted States Fidel ity and Guaranty Company, the Hartford Accident and Indemni ty Company, and the Commercial National Bank:, the City of Bozeman has made full recovery for and on account of the embezzlement of Donald L. Henry and costs incurred in connection therewith, and that having made such recovery~ the City of Bozeman assign all of their claims and demands against the Muntz Car Company of Los Angeles. California and DonFo.ld 1. Henry to the said United States Fidelity and Guaranty Company and Hartford Accident & Indemnity Company, as their respective interests may appear and that, Ul>on the preparation of suoh assignments, the Mayor and the Clerk of the Commission be, and the same are, hereby authorized to execute the assignments for and on behalf of the City of Bozeman, and the motion was carried by the following Aye and No vote: those va ting Aye being Mayor Lowe, Commissioner Erwin and Commissioner Healy; those voting No, none. United States Fidelity and Guaranty Company to Write Bond of L. G. Shadoan I Mr. Howard Casey, representative and adjustor of the United States Fidelity and Guaranty Con~any, was present and advised the City Commission that, by separate agreement between his company and L. G. Shadoan, his company has agreed to continue relationship of surety and principal on L. G. Shadoan and have agreed to write and furnish the City with a surety bond on behalf of L. G. Shadoan in the amount of $60,000.00 as requested by the City Commission. Adj ou rnment There being no further business to come before the Commission at this time, it was moved by Commiss ioner Healy. seconded by Commissioner Erwin, that the meeting adjourn ad the motion was 354 earn. ed by the following Aye and No vote: those voting Aye being Mayor Lowe, Commissioner Erwin and Commissioner Healy; those voting No, none. Attest: I ~f'~ Clerk of he City Commission I I .