National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-21
BUILDING ASSOCIATIONS.
THE RIGHTS OF STOCKHoLDERs-DE.
CISIoN BY THE SUPREME COURT OF
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THE RIGHTS OF sToCKHoLDERs-DE-
CISIoN BY THE SUPREME COURT OF
THE DISTRICT.
The long-looked-for decision In the case OF
Pabst W. The Economical Building Association
was given yesterday In the General Term, Mr.
Justice wylie pronouncing the opinion OF the
court, which sustsins the decision Of Judge Hum
phreyA referring the case to the auditor to state
an account, allowing per cent. on moneys re-
ceiyed by the association and o like interest on
sums paid By plaintiff.
Tbs opinion sets forth that complainant became
member Of the association in 1888, and In course
Of the following year was tho owner OF 10 shares
at the par value Of $500 each, each shars to DO
paid for at the rate Of o. 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 Pabst was advanced money to the
amount OF sle 10 which 10 Q larger sum than had
been paid By him and larger than the worth Of
the shares. For the purpose Of securing the asso-
c.ation he executed deeds OF trust to pay there
after e21o per month until the whole amount was
paid up and the association was closed. This
but to compel the member TO meet his monthly
payments. Tho money advanced WAS not loan,
but the purchase Of the members shares, leaving
him without further interest In the association,
monthly instailmsnts II the association ran for
sixteen years and eight months he would have
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
shorter its existencs. II the time Do short the
member advanced Will have the benent by the
close OF the association, and although no longer q
member he shares In Its profits. ave discover
nothing, therefore, IN the nature Of this assocla-
ton which is unlawful or IN any wise necessarily
object is to try TO mako proft for their members.
On the contrary % far as It holds out encourage
mont to Its members 10 save their earnings, In
deserves 10 be supported and encouraged. II,
however, persons Will join these associations IN
the expectation Of borrowing money at pleasure,
for an amount 0. stock on which they are unable
to meet the monthly duos, and thus subject them
selves to nos at tho rate OF 40 per cent. per an
@ag Be rssrs s, ono 70
who may be overtaken by Ill
nsss As not receiving protts from the association
health, Industrious, frugal, temperate and reso-
lutte, these associations, II controlled by men like
himself, are admirable Institutions. Such man,
however, may win his fortune without their aid,
and by joining them takes tho risk Of wasting his
time and forming connection with those who
may defraud him Of his property"
and says the advances were not loans, and quoting
from the deeds Of trust says that they contain no
obligation 70 pay debt, but TO pay q per month
on each share. He quotes from the account
Psbst's advances sla,IJ0, and his payments tl0-
25s; balance withou. interest, SSH And yet the
defendant claims u, 67p TO- and threatens 10 SELL
The fines amounted to t52245, and Insurance 80.
Concedlng from the hrst wednesday in January,
1870, to February 70, lsf2, that Pabst defaulted,
the sum would amount 70 only es,oo But he had
have been applied TO the payment Of dues. And
I'm such o case no lines could have been laid.
The great error In the eccount is In the item
e, 80, CHARGED IN June a. Q ''loan on ITO
sharea," As this was not Q loan, nor was q loan
In the deeds Of trust, the company
took his stock and sdyanced him In confederation
Of what had already been paid On the monthly
All that ?. had TO do was 70 pay
In December $50 e<47o, q also an error. Ifthey
we're loans they are mot secured BY the deeds and
would Be usuricus. II they constitute the ad-
vances which we're 90 secured, they ought not TO
appear in The aooount % long a. the property rs-
Psbsts monthly dues had pesn ana were then
paid In advance. He refers to provision IN the |
const tuition which provides that no stockholder
Ihsli withdraw who "has received any portion Of 4
bis stock In adyaneep unless the amount shall |
have been paid, aud says the language used Il not
,isar, bat they think it shouldraad ~any advances
upon his stool, and In this sense Il sesm1 70 Be
Understood The complainant q entitled 70 WITH
draw on the payment Of any balances due % Set /
EIsDent Of the account and this was the effect OF
he decree below. The nnes or penalties were en- |
siuced, and properly, for the sums paid b. com
pl1lnant far exceeded the duea. - ~ :.
Judge W. Eays that Pahst on the 18th 81 Feb
ruary, 18TH was not in default, but was eltitlcd
2 ealfnoA ard hh praperty Nas nct Liable o