Evening star., 1895-04-02
THE FIDELITY ASSOCIATION
Judg Cox Gives the Receivers Some Di-
rections
Outstanding Loans and How They
Can he Pnid-One Class
Loses Everything.

The affairs of the Fidelity Building. Loan
and Investment Association were again
brought into court today, when Receivers
L. ii. Poole and L. Gable Williamson asked
Judge Cox for instructions as to outstand-
ing loans. what action, if any. should be
taken against the officers and directors of
the associa ton, and what answer shall be
given to inquring stockholders.
In their petition filed today for instruc-
tions the receivers stated that there is an
outstanding sum of about $4,000 of the as
sociation's money, loaned on no other Sc
curity than the shares or stock held by
its members. These loans, the receivers
stated, We're made in small amounts to
hundreds of shareholders. and so far as
the receivers can ascertain, to financially
irresponsible persons, who have treated the
loan as just so much money recovered from
the association, and have not repaid, and
do not intend to repay, said loans. This
amount Of %i5.uD, the receivers say. is
therefore beyond the hope of recovery, and
they believe that should any small portion
of it be recovered the incidental expenses
would exceed the amount recovered.
Outstanding Loans.
The receivers state that, considering the
interests of all concerned. 1t would lee de-
sirable to have all loans secured by chattel
and real estate trusts paid at an early
day and in bulk. Tney are CT the opinion
tEat the stock can never mature, and,
thele lefore, say members would be compelled
TO continue payments Indefinitely. The re-
ceivers also say that if the court should
diiect them to receive from such members
as full settlement of their loans if paid
in bulk and within a reasonable time
whatever suns they may have borrowed
with . pc" cent interest thereon first de-
ducting from the principal what they may
have paid as dues, they believe many of
these borrowing members would return
their loans in bulk.
The receivers state further that by
reason of the peculiar methods of book
Keeping used by the association and for
lack of sufficient data, ii would involve Il
large expense of money and time to ascer-
tain the facts and definitely answer the
numerous inquiries from the stockholders
of the weekly class. A like condition, they
explain, exists as to the monthly stock
holders, only in a much smaller degree
The assets of the ASSOCIATION. they declare
are far from sufficient to pay the ascer-
taired creditors and special depositors and
they therefore think that it would be a
waste CT time and money to answer the IN
qplries, as under no circumstances, they
state, will there be any money distributed
to this class of stockholders.
Salaries Drawn.
Calling attention to their report filed
January 10 last, wherein they stated that
the officers and directors of the assoc:a-
ton had far exceeded the amount set apart
for the expense fund, and to that extent
had encroached upon the loan fund the
receivers say that the stockholders have
suffered serious loss.
Upon this showing of the receivers Judge
Cox instructed them that they shall not
attempt to collect any part of what is
known as the share loans, and for which
no security was given except the certificate
of stock. The court also instructed them
that they shall receive in bulk from bor-
rowing members, who have given as Sc
curity either chattel or real estate trusts
the amounts SO borrowed with . per cent
interest thereon, deducting whatever dues
may have been paid; provided, said sums
shall be paid within ninety days. Also
that they shall require those not meeting
these conditions 10 continue paying the
association before the appointment of the
receivers until the dues under the rules of
partial payments shall liqudate the prin-
ciral sum, the payments for interest and
premium being treated as interest.
The Judges Directions.
Judge Cox also directed the receivers to
take no action to ascertain how much is
due to stockholders who have paid in
weekly or monthly payments, nor to the
stockholders who have received paid-up
certificates. but they shall ascertain how
much is due to the stockholders who have
deposited their money in bulk and have re-
ceived shares of stock therefor, either with
or without interest coupons thereon. AS to
what action, If any, should be taken against
the officers and directors of the association
to recover funds expended in excess of the
expense funds and contrary to the consti-
tuition and bylaws of the association
Judge Cox stated he would later decide.