The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-17
A B. AND L. ASSESSMENT
CLAIMED THE EQUITABLE AsSOCIA-
TION COULDN'T LEVY IT.
Number of New Allegations in Receiv-
erts-Receivers' Reports.

In the Superior Court yesterday a new
question was raised in the Equitable Saw
ings and Loan Association litigation
Robert E. Roberts who a few weeks ago
brought suit against the association for
a receiver, yesterday filed an amended COM
plant making the same request of the
court. A number OF new allegations are set
out
After extended reference to the bylaws of
the association the complaint makes the
claim that the shareholders liability is
limited and that the stock is worcestershire
over and beyond the amount required to
mature the stock; Also that dividends are
payable only out of the net profits, and that
contingent fund which is taken out of the
earnings before the dividends are declared
Is provided for payment of losses. There is
an allegation in the amended complaint to
the effect that after the plaintiff Roberts
had given the association notice OF with
draWaI the directors undertook to levy an
assessment of IA per cent. on the amount
paid in. 1t is charged that this assessment
is invalid because the stock is nonassess-
able under the constitution and bylaws
and that an assessment of stock, if it is
permitted at all, can only be made by mem
bers of the association also, that an as
sessment in any event can only be made
to pay losses incurred within the legitimate
business of the association.
In this connection the amended complaint
alleges that the president of the associa-
ton sold TO the association real estate at
an excessive valuation, and that construc-
ton company was organized within the otfi-
GERS of the board of directors which COM
pany lost a large amount of funds by i'm
provident investments. The complaint
then proceeds on the theory that the Off
GERS of the association who are members
of this construction company should be held
liable for the losses sustained. The stock
no4der, II is maintained, cannot be held as
surely To make good a loss Tor which an
other person Is primarily liable to the as
ISOLATION.
An important allegation of the amended
complaint dedls with the apportlonment OF
losses. LII Is alleged that sIcce 1898 about
3<tUUuO OF the capital stock OF the aSsocia-
ton mas been matured or Withdrawn and
pad; that OF the moneys thus withdrawn
Szo,UtO was in the form of DIVIDENDS which
mad been paid without being earned. 1t is
aIlegeu that this money should be recovered
back from the shareholders to whom II was
unlawtuliy PAD, and that the present share
holders cannot be assessed TO refund TO the
association the money which it paid unlaW
fully TO other people.
With the presentation of these claims to
the court was raised the question OF JuriS-
diction. Charles w. Smith, attorney for the
of an association of this character has no
right to come into court ana ask that re-
cerVer be appointed. the attorney said that
under the law the member must place his
facts before the auditor OF state That ofi1-
cial, ii he inds by investigation that the
association is being illegally conducted,
may present the facts 10 the attorney gen.
eral who may proceed against the assoca-
ton in the regular way. The attorney for
the plaintiff took the ground that such
statute would be unconstitutional. He in
sisted that the judicial power OF the statute
is vested in the courts and not in the adj
ministrative officers. The right of a citi-
zen to a judgment could not be dependent
on his ability to convince the auditor of
state that an association complained of re-
quired investigation. But admitting the
contention Of counsel that the PLAINTIFF
cannot bring this suit, then, Attorney Rock
er asserted, no one could bring the
action because under the rule of law the
party who Institutes suit must be the real
party in interest and no one can complain
to the court except the party who has been
damaged by the transaction.
Judge McMaster took the matter under
Amusement