Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-28
NO RIGHT TO EXIST.
So Says the Court of The Universal
Order of Cooperation. ID.
1T MUST GO INTO LIQUIDATION.
The Appointment of Receiver to Be Made
On Next Tuesday.
A BIG CROWD STORMS THE MAIN OFFICE

.rPEcIAJ TELEGRAM TO rHK DIsPArcHt
PHILADELPHIA, March N.-Judge But
Ter, of the United States Circuit Court, de-
cided to-day that the Universal Order Of
Cooperation had no right to do business,
and consequently that order must 90
into liquidation, and receiver will at once
be appointed to take charge of its affairs.
The case was brought up before Judge
Butler during ;he early part of the week,
and on application of Lawyers Heyerin and
Shakespeare, for the order, an extension was
granted until yesterday, in order to give
time 10 prepare an answer to the request of
the petitioners. By their attorneys, the
officers of the order presented an answer to
the complaint, in which they admit the
complaints made against them, and that the
order submitted itself to the judgment Of
the court as to the legality of tine business
carried on by it.
No Opposition Made.
1t was urged by Lawyer Heyerin that the
officers of the order did not wish to do any
thing illegal, as they were in every sense Of
the word reputable business men of good
standing in the community. The officers
made no opposition to the request for re-
ceiver; they were anxious to have decision,
so that they could understand clearly
whether they were doing anything contrary
to the laws or not
Judge Butler then gave his decision in q
few briei sentences. He said that under
the law the Universal Order OF Cooperation
had no right to carry on the business pecu-
liar to it. The order had no authority to
enter into contract such as had been made
with the members of the order without first
having sufficient money on hand to carry
them out. The contracts were ultra veres,
and it was not necessary to say anything
further about them at this time.
Counsel Must Get Together.
As to jurisdiction, it was plain that the
corporation should be treated as a trustee,
and being so treated, it was eminently
proper that they should be brought into that
court Judge Butler said, in conclusion,
that the case was not contested and counsel
should at once get together and prepare the
order appointing receiver. This could be
entered on the record next Tuesday, and at
that time the appointment of a receiver
would be formally made.
The court room was crowded when the de- |
cision was given, by the officers of the vari- !
Gus financial affairs in this city, who mani
tested lively interest in the case. The
decision affects more or less every one of the
short term orders IN the city, who now must
show some stability satisfactory to the court
before they can further continue business.
Judge Butler received an Informal protest
against the appointment of receiver yester-
day, signed by 20 members of the order, but
he refused to take it into consideration. and
no mention was made of it other than an an.
nouncement that it had been received.
The scene around the main Office Of the
order soon after the decision WAS made
known was not pleasant to those of the off,
GERS of the order who happened to be there.
The crowd gathered around the door and
threatened to break down the door unless ad-
mitted to the offices, and once inside the cry
was for Driver, but that astute gentleman
was nowhere to be seen, not having been in
town for over week past. The people
could get no information out of Treasurer
McBracken, and one by one they went home,
DR.. Rosenthal, of 800 Passyunk avenue,
is secretary of Branch 80, and has for some
time been endeavoring to save in some way
the money in the hands of the officers to the
people. He now says that he will leave no
stone unturned to obtain a proportionate
division of the funds among the members Of
the order. ...