The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-05-08
A RADICAL CHANGE
alton Tunds Nece>>'iaied by nm
Authoritative Laying Down OF the

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Authoritative Laying Down OF the
Law
Decisions were announced in three cases OF
great local inieres, and importance In the
Supreme Court o! Appeal, at Saturdays ss.
sion, BY Judge Green, President, johnson and
Judge Raymond eoncurring. The cases
we're appealed from the Ohio county courts,
and we're what bare been known during
their progress as the Building Association
caves" Technically the cases were known rs
follows: -
Parker vs.. the United State, Land and
Loan association. t.a.I
Parker Brothers vs.. the United States Land
atd Loan association No. .
MeGannon vs. the Wheeling Central Build.
ing association. .
| The points ajiudicated were some OF
them vital ones, and the decision will have
sweeping Affect upon tue associations. Here.
tototr It has been the custom for such aSso-
Citations 10 sell their funds ia the hiches,
bidder, the borrowc. payinsa premium for
the use Of the money. Thus II man owned
one share otsiock, OF par value OF 81 so,
and bid SIs per cent premium, he could gel
800 on 6t. share. II was not on this sa,,
however, tina, interest was computed. bu, on
the par value OF his stock, 81 70. This was
one PoiD! at issue In the above cases, the rs.
sociatioas' lawyer, ". P. Hubbard, in his
argument, holding, as the theory on which
the Organizations bad always acted. that the
money was not loaned. but the stock
holders shares purchased by the association.
On this head the court holds tina, the redemp.
ton OF shares by building association is not
the purchase OF the shares by the association,
but IL loan BY the association TO the mem.
Der whose shares are redeemed OF the amount
actually paid TO him by the association, and
not loan o! the par yalue OF the shares. and
the association can legitimately only demand
interest on the amount actually paid 10 the
III amber; aud II II demand. or receives inter-
est on the pa. value OF the shases, instead OF
the amount actually advanced, /, is usurious,
and the excess OF interest must be accounted
| for.
|! will be readily seen that this decision
affects mos. sTeepingly the whole conduct OF
the Affairs OF building associations, and en-.
ablei every stakeholder who has paid inter.
est. ss heretofore exacted, on the face OF his
shar~. 10 compel the association 10 account
for aud refund or place to his credit the cx.
cess
Mr. Harry RUSSELL who, with Hon. Daniel
Lamb, represented the stockholders In these
cases, Yesterday said to reporter that he
though, most OF the association. fereabouts
would be virtually obliged to close up their
affairs, and either dissolve or begin again on
correct principles
Another significant point in the decision OF
the court, and one which revolutonizes an.
other branch OF the business, Is that build.
ing association Is bound 10 see to the applica.
tioa of the money borrowed Of it by mem.
befto bnyingo! house or lot, or The building
OF repairing OF house; and i. /: fail to do 50,
and the money loaned Is applied any other
purpose by the borrower, The building asso.
citation may compel the return OF the money
actually loaned and the interest on it, but
canrot exact the premium which the Dor.
rover bid for the preference in taking the
loan.
Heretofore a very small proportion OF the
loans made by building associations have
been used in the purchase Of lots or building
o. repairing OF houses