New Orleans Republican., 1873-04-11
COURT RECORD.
Superior District Court.

r. Y. nhldn VS.. accommodation Bank OF
LOuisiana.-The following petition has been
fled in this court:
To the Honorable the Judge of the Superior Dis.
trict Court for the Parish o: Orleans
The petition of Francis C. Mahan, resi-
dent OF the city Of New Orleans, with re.
sDect, represents that the State of LOuisi-
ana has taken proceedings in the honorable
court to have dissolved a certain pretended
corporation styling itself the AccOmmoda-
ton Bank OF Louisiana, which claims TO be
successor to the regularly Incorporated
body known as the Loan and Pledge Asso-
citation of Louisiana; that in said proceed
ings referred to as a part hereof, the said
Accommodation Bank of Louisiana is
charged with usurping banking franchises
and privileges without authority of law.
That John Lockwood, j. NJ. Burchard
and j. w. Hillman profess to act as the dl-
rectors, and E. B. Benton and K. II. Wood
as the president and cashier OF said pre-
tended Accommodation Bank OF Louisiana,
all residents of New Orleans
That said illegal and usurpng board of
directors and president of said selt-cTeated
bank have called upon the stOckhOlderskOf
the Loan and Pledge Association to pay to
the Accommodation Bank $40 on each share
of the capital stock of said Loan and
Pledge Association into the hands of the
officers of said unlawful association styling
itself the Accommodation Bank of LOuisi
ana, as appears from cal! hereto annexed
and made part hereof.
Your petitioner alleges that he is a stock
holder for 420 shares, credited $33 10 per
share in the Loan and Pledge Association,
body corporate.
That said corporation was created by act
No 2l2 of the acts of the General bly,,
approved the thirty first OF October, 1868,
aud consists of the following named per.
Henry KlOpDenburg, II. w. Kloppenburg,
K. Huberwald. A. c. Denovirian and II.
+. Casanave, their successors and assigns.
That SAID association by the first article
Of the act was dOmicIled in New Orleans,
and authorized to commence business us
soon as fifty thousand dollars was sub
scribed. and limited i'll existence to twenty.
five years, and empowered TO contract, sue
and be sued. to hold, receive, purchase.
convey, mortgage and receive in pledge
property, both real and personal, to make
and use a common seal: to name and ap-
point managers. directors. officers and SER
wants, as its interest required, and to
create bylaws and rules for management Of
its affairs in it's corporate capacity.
That, by the second article, the specific
object and purpose Of the corporation was
| to be the making and entering into all
manner of contracts and arrangements for
| movable property in order to promote the
! interest of the working classes out of en-
plovment and temporarily in need of
| money for themselves and families, and to
make, execute, issue and receive certificates
| of pledge Of any kind and nature whatso-
| ever for the pledge of movable property,
| and to do and perform generally every act
| and thing to the business OF loaning money
| on the security of pawn or pledge belong
iptr nr in anVwiSa hnnprtajDlnp.
| That the capital stock of the association
was fixed at 100000, divided into 20O0
! shares of 500 each, and that the sub
| scribers thereto were required to pay into the
| hands of the president, when said assOcia-
| ton was organized, $40 on each share, the
| remaining $50 payable on demand at the
office of the company, after fifteen days
| from notice from the cashier and president.
That the Loan and Pledge Association
| was organized, and that under the ninth
| article VI the charter the funds OF the assO-
| citation were to consist of the funds which
result from the sale OF the capital stock
and of the funds received by the associa-
| ton in payment of the money loaned on
pledges and pawns OF movable property
and the profits realized by said association
| after payment of the semi-annual interest
divided ON the capital stock shall be invest
| ed at the rate of three per cent per month,
and not TO exceed i've per cent per month
! as loans upon the security of movable prop
erty exceeding in value one hundred per
| cent OF the amount so loaned, ana ne loans
to be made for period exceeding six
months.
That the seventh article provides for the
| disposal of pledges uuredeemed and the
| eleventh for an annual statement.
That said Lock weOd, Hillman, Burchard,
Wood and Benton were the officers and di-
rectors OF the Loan and Pledge Association,
! but that they have absorbed all the funds
! and property OF the said association. and
| styling themselves now the Accommodation
Bank of Louisiana, changed fundamentally
the charter of the Loan and Pledge ASsOcia-
| ton without authority of law, and have
| contederated under color of q law uncOnsti-
| tutional and void, and violating articles
ia and IFS of the constitution OF the State,
and without the assent of the stockholders,
| used the funds OF the Loan and Pledge As
sociation for objects foreign to its charter.
| That they are calling on its stockholders
| for contributions, and moneys heretofore
| contributed they are directing INTO chan
! nels diverse from those originally cOntem-
plated, and from which emQluments were
| derived.
That they are misapplying and have mis-
applied moneys Of the Loan and Pledge As
s0ciation, destroying the profits of the
association, and that the profits OF the cap
itai stock of the Loan and Pledge AssOcia-
ton already by their breach of duty have
deprecated SIS per share, and continue to
depreciate daily.
That petitioner has always been willing
and ready to pay assessments on his stock
to the Loan and Pledge Association, if
called in and used according to the charter.
But. that he denies the right OF said pre-
tended Accommodation Bank, and of the
said pretended officers thereof, to assess or
collect assessments of stock on petitioner as
stakeholder OF the Loan and Pledge AssO.
citation.
That petitioner pledged to isadore New.
man & Co, a broker Of this city. $50 shares
of the stock owned b. him. and that said
Benton and the directors of said assOcia-
ton. when said pledge was subscribed,
agreed with said Newman that a transfer
OF said stock could be made whenever
asked.
That subsequent to said pledge the said
association were called on to make transfer
by said Newman, when, to lure the rights
OF petitioner as st0ckholder, they refused
to make transfer TO said Newman, mali
| cOusly aud without any preteXt whatever,
| although said Newman was well known to
them, and pro!fered TO pay any charges due
on stock. That said refusal is part of the
| plan of said conspirators to depreCiate the
| stock and destroy the interest OF petitioner.
That said pretended Accommodation
Bank, or the persons constituting the board
OF dire ctOrs and president, are liable indi-
viduallv aud III solldo to petitioner in the
sum OF $l5 per share, or $500, for depre-
ciation OF stock caused by their Illegal acts
That petitioner will suffer irreparable injury
unless SAID Accommodation Bank be en-
joined.
Wherefore petitioner prays that said pre-
| tended Accommodation Bank of louisiana
and the said directors, John Lockwo
John W. Hillman, }. NJ. Burchard, (. B.
Benton and f. II. Wood. be cited individ-
ually and in their official capacity, and con-
demned in sOlido. after due process, TO pay