The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-07-12
BELONGS TO Ill CLUB
DECISION IN COMMERCIAL CLUB EN-
CAMPMENT BALANCE CASE.
Money Is for Assemblage Purposes
Mr.. Fortune Must, However,, Re-
fund the $1,000 Paid Him.

Special Judge Rupe, Of Richmond, ycster-
day handed down his decision in the suit
of the city against the Commercial Club 10
recover the balance Of the appropriation
for the O.. a. r. encampment. He holds
that the city Is not entitled to the funds,
but that in making the appropriation it
relinquished all claim 10 the money and IL
became a trust fund in the hands of the
club for the purposes for which it was ap-
propriated, and is to remain in the hands
of the club to be used for the puI pose of
bringing assemblages TO the city. AS 10
Messrs. Fortune and Lilly the demurrer
to the complaint is overruled, thus holding
them responsible for the 5000 given to Mr..
Fortune for his services, and this amount
will have to be repaid to the club by them.
Judge Rupe said the questions TO be de-
termined in the case were, first, what are
the character of the funds paid TO the Com
mercial Club under three subscriptions.
Are they trust funds for the payment of
~encampment expenses or are they the prop
erty of the club and only trust funds in the
sense that they shall be applied to the gen.
eral work Of the committee on assem-
blages? Second, was the payment of 5000
to Mr.. Fortune such a ~misapplication of
the funds as would enable the plaintiff to
recover the amount and require an &C
counting in this action. The subscribers
had a right in their contract for subscrip-
tons to say that the fund should be used
in paying the expenses of the encampment.
He held that as to a trust created by the
subscribers, the court could not look be-
yond the contract. On II. first subScrip-
ton contract he held that the subscriber
paid it to the assemblage I'M 10
be used by it In it's general work. The
amount thus subscribed was 1861, and the
court held that this became the property of
the club to be used by the committee
without restriction. He holds the second
subscription contract, under which $22,-
1896. % was paid to the club. TO be the same
in legal effect. The $4,000 now in the
hands of the aSSemblage is held
to be a part of the money paid under the
first two subscription contracts. Under the
third subscription $l9,995 was PAID TO the
club.
pose of paying the expenses OF the en-
campment. These expenses were paid 10
the amount of $SQ,752 and this is held to
under the third subscription contract. Ii
would also require the sum of 500 to
be applied from the funds raised under the
first and second subscription contracts.
The court held that 1t was compelled 10
presume that the third fund was eX-
hausted and the $1,000 now in the hands
of the club was a part of the money raised
under the first and second subscription con-
tracts. Under this holding 1t Is held that
the funds were the property of the assem-
blage committee TO be used for its general
purposes. He held the point raised by
City Attorney Scott that the purposes of
the club as set forth in it's charter did not
warrant the position that the funds must
necessarily be a trust fund in the hands
Of the club for the benefit of the city. He
said the Commercial Club was not organ
lied for the purpose of promoting the man
ufacturing, commercial and general wei
fare of the city, because. as a city, 1t had
no such interests.
THE city of Indianapolis" continues the
opinion, aside from her corporate capacity
and regarded as a community. has large
commercial, manufacturing and business
interests, and the object OF the organisa-
Club is manifestly for the Advancement OF
these interests and without any reference
to the city OF indi a Ape Is 3 as a m in whtcH
1t appears here. The city OF indianapolis,
as here in court, has no interest whatever
Club, and they are, therefore, not held for
the benefit of the city. These funds are
not trust funds, except as has been mere
AS to the purpose of the Council that
the funds should only be applied II needed
visions of the ordinance must govern. The
representations of Messrs. Fortune ana
Lilly cannot be considered.
FORTUNE MUST REFUND.
Upon the question of the donation of the
5000 to Mr.. Fortune the court says:
II he uGlGIlthL do III IS
claim or demand upon the organization
for these funds for payment. The defend
ant Lilly had no authority TO make a do
nation to any officer of the organization.
All the services rendered by Mr.. Fortune
prior TO citizens organization were rendered
as secretary of the Commercial Club, and
for which he received a salary. One of the
duties of the citizens organization is as
follows:
mo Indebtedness for any purpose shall
be incurred or will be paid without a requi-
sition having been first obtained from the
executive director
This requires that payment should have
been authorized before the services rem
dered. Mr.. Fortune necessarily drew the
warrant upon the treasury himself for the
amount of the 5000 paid him, the war
rant being approved by Mr.. Lilly as chair
man. Before the defendant Fortune could
have had any claim against these funds
on account of services it would have been
necessary that his employment should have
been authorized by himself as executive
dered, and the money received by him
must have been paid upon his own war
rant drawn upon the funds approved by
tune should be required 10 account in this
action for the $1,000. The Commercial Club
was in no wise. concerned in the payment
of the 5000. AS to the $1,000 remaining
in the hands of the club, | am unable to
see upon the facts stated in the bill any
reason why il should be disturbed. The de-
murrer of the Commercial Club will there
fore be sustained
The demurrer is sustained as to the de-
PENDANTS. John W.. Murphy and other men,
bers of the -encampment committee.
Messrs. Fortune and Lilly can now file a
general denial and go to trial upon the
merits of the case or file a special an
to the answer will probably be filed, and
this will be argued before the court. The
effect of the ruling is that, admitting the
facts in the complaint TO be true, Messrs.
Fortune and Lilly must return the 5000.
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