Telegram-herald., 1890-06-13
BUILDING & LOAN CO.'S.
The Supreme Court to Determine Their
Srppr.

The supreme Court 20 Determine Their
scope.
LASsNS, June l2.-UpOn an informa-
ton filed by the attorney general, the
supreme-court has granted an order,
retumabe at the October term, direct
ing the National loan an investment
company, of Detroit, to show by what
warrant 1t IS engaging IN the follow
ing business, tO-wlt: Receiving money
on deposit and using the same in dis
counting bills OF exchange and promis-
sorry notes, lOaning money TO aid the
purchase and Improvement OF real
estate. accepting money on deposit as IS
usual in dong banking business and
selling what sand company deuOmnates
fully paid up stock tor one hundred
dollars per share and issuing Certlti-
Gates therefor with interest at SIX per
cent per annuip, 10 be paid Semi-annual-
ly, and IS doing i general banking
business.
It's hoped that in deciding this case
the Supreme Court VIII definitely de
tevmnc the full scope Of the building
and loan association laws OF tins State,
and say lust what manner of business
can De- transacted hereunder.
II COnteuded that these laws simply
contemplate the establishment OF local
organizations, whereby individuals OF
the same community may band them
selves together, and By a system OF
periodical contributions provide a fund
20 bee used IN the building OF homes,
and that they do not warrant the es-
adjustment Of 2 central organization
with local boards or branches III various
sections of this or other States for the
transaction OF such business as Is qucs-
toned by this action.
II Will De- remembered that the Co
operative Bank OF Detroit, which was
organized under the Michigan law.
ceased doing business after a career Of
but few weeks. The reason for this
suspension was that their attorney.
tdwlu + .COnely, who was also a stock
holder in the concern, ADVISED them
thst the banking business winch they
were doing was not authorized tv the
law under which they were inc0r-
porated. Finding that they could not
do legal business and compete with
other concerns which. if Nlr. COalev
Hl1 the Att3rnev-tfcueral are correct.
are trausacting business not provided
ov tue act under which they are or
~flfed, tley refunded their stock
no-icrS the amounts each had pat in
and gracefully retired from tie field
W nen tDe i3St legislature exempted
olld-u- and loan ASSOCIATION stock
from taTacton and levy. SIS not o. he
supposed tn2t it understood that the
statute would permit such vast sums OF
money "a are represented bv the inn
meuse concerns d se fhc National Loan
and Investment Company land which
h3ve aii sprung into existence s.nce tho
I1st named scr vas passed lO be urlC-
t.c0 n nve stcd hi enc banking business
uDder t0Is form. and escape taxation.
lt was be- evnd, then pc now. shat the
br ding and loan Associations ve-e
srnr. .r s means whereby the poor man.
through a system of w7ek.y0r mouth Isl
irsrsI reuts, could provide home for
h.s family
The outcome 0f the issue "a sed hv
tte Attorney lrencrsl .a this cas7 ,s
awaited vrth u1Cl interest. "a several
othe~ concerns n the St8to are working
tna same features "a the National Loan
srt Investment Company
C1uniss 0ner of BANKING Sherwood
was seem av toe Nars tl-s morning. lie
saai trat neither he nor f1e banking
department. knew anything NJ f-- A.
tornav trenrraI I's actcr rrtI sr.-k-- to
rur.r lass u-rt ne den
rfTE backed che Attorney Genera. -
Is .C1.-E EzH N