Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-06-27

Justice Hagner had before him this mornina
the case of Scherer ct al. against the Fidelity
Building Loan and Investment Company i'm
which the appointment Of a receiver is asked
Messrs r. Beall, b. s. Minor and ". A Wade sp-
pear for the complainants and Messrs. J. J.
Darlington and L. Cabell Williamson for tie
defendants.
Mir. Beall read the bill. which was referred to
in THE STAR of the 18th, and stated that he
also had three petitions to become parties COM
plainant from a number Of stockholders.
The answer admits that Wall is the sole man
ager, denies the charges against the personal
character Of Wall, and denies any intention to
cheat and demands proof Of any misrepresents-
ton by agents The salaries of officers are given
President and treasurer, $500 per annum; Sec
Rotary. 800, and the manager, $4,000. II adj
mits that it pays Is percent toagents ands submits
il is reasonable; denies that the expense account
has been Incorporated; admits as true that
it was represented that large profits were Likely
to arise from fines, &C.. buff the compliments
were induced thereby to obtain membership,
misfortunes of others and they have
no standing in court 1t is denied
that the compliments were msled and
deceived or that complaints were made. Its
asserted on information and belief that the
fling of the bill did not originate with the
compliments, but was brought about by COM
peting companies II denies that such sum
as $500 COO has been paid officers, agents, DC.
I AFFInsvrrs FILLED.
The affidavit of Nathaniel Tyler. examiner OF
the insurance department of Maryland for four
years. is fled He states that he has examined
the books to June and finds il TO be what 10
| known in Massachusetts a cooperative bank
1 n N - = NJ
building association; that the redemption OF
shares at the end of 1902 months 10
| theoretically certain, though in prac-
tice necessarily dependent on the honesty
and skill OF the management. and It's manage
ment seems in all respects to have been
methodical, correct and In all respects accurate;
that the American Loan and Trust Company rs
| trustee to hold all investment securities Of the
loan fund. which checks the possibility Of mis-
| application; aud il this system is adhered 90
and the funds invested with the trustee and
interest compounded according TO plan. &c.
there can be no reason for apprehension OF
failure in the weekly or monthly plan Of ths
association. D..
STOCKHOLDERS EXPLAIN.
Mr.. Beall, for the oomplainAnts, read quite .
number Of afidavits. made by shareholders in
the association, to the effect that while the
agents of the concern assured them before
entering that they could withdraw their de-
1
| savings association and would pay interest on
| deposits; that, In fact, no interest Was
paid depositors and they had great Diff
| Guilty in getting back the amounts paid in, in
many cases not being able to get back the prto-
cipal. One affidavit was to the effect that ths
| affiant endeavored, a. the widow Of q share
holder, to get back the money paid in by her
husband. which, under the rules Of the associa-
ton, she was entitled to do as the personal rep
reseutative of her husband, but that the asso-
citation refused to refund.
Mr.. Darlington--Wss she the ADMINISTRATIVE
Mr.. Beall-No, sir.
Judge Hagner-well, then, she was not biz
personal representative.
MIR. BoNsALs AFf1DAvIr.
An affidavit of William C. Bonsal, Of Cents,
street, Mt. Pleasant, was to the effect tina
he was soliciting agent of the association
during 1891; that Andrewwan was really TIA,
association; that during his connection
with the association he became con
WINGED from what he OF the manner N
which Wall conducted business and the mon,
| he spent by him for purposes not properl,
connected with the association that the partie
; whom he (Bonss) had induced to Join tb'
{ association would lose their money; he ad
D vised them to withdraw and he severed hi
connection with it; that he frequently
heard Wall demand money for hi
Z fweedale. who would argue with
Wall and object to the improper use Of th
: money Of the association, saying frequent.
when he gave him money of the association
This will bring you trouble some time" tim
. | when the association began business in 1891 Wal
= was wholly insolvent and now lives at an an
y nual expense OF from eight 20 nine thousand
dollars; that Wallis annual salary as MANAGE
is S2.500, which is his only sourc'
of income. and that in atlantis opinion tn
r stockholders will certainly lose their money be
g cause of the manner of conducting the assocsa
ton.
Mr.. Beall submitted copies Of the circular
= issued by the association. copies Of its Ger
& tifcates OF stock and similar papers, and ~
a rested the case of-the compliments.
IL THE ANSWER READ.
J. Mr.. ]. J. Darlington then read the answer Q
K the association, urging that no wrong or oths
!, fraud had been shown by the complainans'
4 and that therefore it would be both unvis
. and unjust for the court to arrest the bus
n | ness of the association because OF the an
- satisfaction of a mere handful OF the man
:, | Thousand shareholters of the association.