Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-04-20

hno S/ulIOnm8 ASSOCIATION Case.
IMPORTANT DECISION or THE DISTRICT So
PRIME COURT SUSTAINING JUDGE HUM
PHRnYs.
The April term Of the Supreme Court of the
Judges Wyle, Olin, Humphreys and MaeAr-
thur on the bench.
TIE BUIIpINe AssocIATIoD CASE.
Judge Wyli6 delivered the opinion of the
court in the case Of Pabst against Plant ct al,
(the Economical Building Association case,)
sustaining the decision Of Judge Humphreys,
referring the case TO the auditor to state ac-
count allowing six per cent. on monies received
from the association and like interest on sums
paid by plaintiff.
The opinion sets forth that complainant be-
came q member of the association in 1868, and
in course of the following year was the owner
OF 40 shares at the par value of 500 each, each
share TO be paid for at the rate OF 81 per month.
At this rate his shares would have been paid at
the end of sixteen years and eight months; but
the actual value of the shares depended on the
amount of payment which had been made.
At different periods in 1859 Psbst was advanced
money TO the amount Of SOTO, which is
larger sum than had been paid by him and
larger than the worth of the shares. Fer the
purpose of securing the association he executed
deeds of trust to pay thereafter $40 per month
until the whole amount was paid up, and the
association closed. This security was not to
compel the payment of a debt, but to compel
The member to meet his monthly payments
The money advanced was not a loan. but
pnre hase OF the members shares, leaving him
without further interest in the association, ex-
cept To pay 20 the utterm0st faTthing his month
ly instalments. II the association ran for 10
years and months he would have paid s24 900
IN the treasury.
The judge proceeds to explain that by the
rapid compoUnding of interest, the fines, &c,
the time of the association may be greatly
abridged, and therefore the more prosperous
the association the shorter its existence. IL the
time be short the member advanced will have
the benefit by the close of the association, and
although no longer q member he shares in its
profits. "we discover nothing. therefore, in
the nature of this association which is unlawful
or In any wise necessarily more Objectionable
than other associations VIII )se object is to make
prOtt for their members. On the contrary, SO
far as it holds out encouragement to its mem
bers to save their earnings, instead of
ssqusndering them in idleness and vice,
II deserves to be supported and encouraged.
III, however, persons will join these associa-
tons in the expectation of borrowing money at
pleasure, with no obligation ever to repay it, or
subscribe for an amount OF stock on which they
are unable to meet the monthly dues, and thus
subject themselves to fines at the rate of l2)
per cent per annum interest on the sums in
arrear, disappointment and bankruptcy NAV be
expected" He refers also to the workIngm men,
whe may be overtaken by illness, as not re-
living profits from the association, and adds:
" But for the laboring man blessed with health
industrious, frugal, temperate and resolute,
these associations, II controlled by men like
himself, are admirable institutions Such a
man, however. may win his fortune without
wasting his time and forming a connection with
those who may defrsud him OF his property.
Judge W. then discusses this particular case,
and says the advances were not loans, and
quoting from the deeds of trust says that they
contain no obligation to pay a debt, but TO pay
- per month on each share. He quotes from
the account Pabst's advances s10,170, and his
payments s10,25s; balance without interest
S5l2. And yet the defendant claims 81 $40 10,
and threatens to sell. The fines amounted to
S522.I5, and insurance 80. Conceding from the
first Wedne sdsy in January, 1870. to February
%, 1872. that Psbst defauited, the sum would
amount to only $4,000. But he had in that time
paid Slopes on account, which should have
been applied to the payment of dues. And in
such case no fines could have been laid.
The great error in the account is in the item
Ss,sel 30, charged in June as ''loan on ITO
shares" AS this WAS not a loan, nor was a loan
contemplated in the deeds of trust, the company
took his stock and advanced him in cOnsidera-
ton of what had already been paid on the
monthly instruments All that p. had to do
was TO pay his monthly dues. The loan on 40
shares of stock in December, 1870, 81, 420, is
also an error. II they were loans they are not
they constitute the advances which were so Sc
cured, they ought not to appear in
the ,., account amt, so long as the property
had been and were then paid in advance.
He refers to a provision in the constitution
which provides that no stakeholder shall with
draw who 'has received any portion of his
stock in advance" unless the amount shall have
been paid, and says the language used is not
clear, but they think il should read s'any ad-
seems 70 Sn I nS ana Th IN TINS sense II
entitled to withdraw on the payment of any
balance due on a settlement of the account, aud
this was the effect OF the decree below The fines
or penalties were excluded and properly, for
the sums paid by complainant far exceeded the
dues.
Judge W. says that Pabst on the 29th of
February, 1872. was not in default, but was en-
titled To balance, and his property was not
liable 10 sale under the trust deeds, but the
association treated him as borrower, and he
might have claimed his right to continue his
connection with the society, have his balance
credited, and meet his monthly dues IL the
balance was not sufficient, and ultimately have
his advances repaid from his share of the profits
lie was entitled to the relief prayed, and the
J judgment Of the court below will be affirmed.