The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-11-20
A nERE BUBBLE.
An Endowment Association Keenly
Scored.


Scored.
For some time intangible rumors against
the system of so-called endowment associa-
tions have been floating around.
Yesterday these rumors eliminated in an
open attack upon the Eureka Endowment
Association, made by Marie C. Arnaut on
behalf of herself and other members of the
body.
The attack takes the form Of suit in the
Superior Court for dissolution of the cor
poration named and the appointment Of a
receiver for the sane.
The complaint char ges the directors Of the
association G. Schord, <. II. Black.
Louis c. Knell. ii. b. Mayhem, Andrew
Craig. b. Knell, S. c. Coggin-and the
same with John Doe. r. Roe and John
Knell. as individuals, with various frauds
in conducting the Eureka Endowment Asso-
citation.
First OF all, the complaint reeites the cir
cumstances whereby the plaIntln became
member emitting her to receive $1,000, In
iDstallments of $500 each.
Her first coupon became due on June 90
last and has not been paid, and Mrs. Arnaut
states that 10 other members hold coupons
amounting TO So. COO which have not been
paid.
Elsewhere in the complaint 1t is alleged
that the liabilities of the association on
coupons are more than s., ,000 while the
assets are only $4,000 on deposit. The menl-
bership has been 1900 but is now about 1000
Considerable public interest attaches to
the remainder of the complaint, as being
more general in its charges concerning the
inside workings Of endowment organizs-
tions.
1t Is stated in effect that on August 90.
1892. the directors issued "a special notice"
that the association was mot lDsolvent,"
Int hat h. 1faf, -
decreased TO about nothing In the future,
and that all coupons are paid in regular
order of maturity"
1t is averred that said statements were
knowingly false and defendant associa-
ton is now and was on August 90, 1892. and
las been for more than six months last past
hopelessly inSolvent, and does not pay and
is not able TO pay said coupons as they ma
ture, or at all, aud that a large sum of
money is being constantly collected from
said members under said false and fraudu-
lent INTERPRETATIONS.
THAT the whole plan and scheme as car
ried on by said defendants is a scheme of
wildcat insurance, confidence game and
can be carried on only at permanent loss
to said members and is not founded on BUSH
ness principles, but is mere bubble, a
dream unsound and impracticabie and is
scheme TO entrap and then fleece unwary
and unsuspecting dupes.
THAT IL cannot possibly succeed and must
inevitably collapse within few months.
THAT the only participants In the game
who have a sure thing are the officials who,
as fast as large number of certificates
approach maturity, make new regulations
postpOning payment and in the meantime
appropriate liberal sums for their own
use"
Mrs. Arnaut asks for $1,000 from the funds
of the association to prosecute her suit.
Judge Hebbard has granted an Injunction
restraining the officers of the association
from diSposing of any property of that
body. The court also appointed Joseph G..
Kearny as receiver under q bond of $500.
the sureties being James z. Hughes and
John Capron.
Among those sued B. Knell Is stated as a
married woman, and John Knell as her hus-
band.