The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-28
REPLY OF THE EQUITABLE
b. AND l.. ASSOCIATION REsENTs AN
ACTION FOR RECEIVERSHIP.
Directors Declare They Are Solvent
sOn-FIOra Evans's Judgment.

In the suit of Robert f. Roberts against
the Equitable Savings and Loan AsSocia-
ton the answer of the defendants was filed
yesterday resisting the application for a
receiver. Judge McMaster, of the Superior
Court, will hear the case next Monday
The defendants admit that Roberts was
a holder of 81, 500 of stock issued by the as
ISOLATION in February, 1893, and that in No
VeTnber, 1886, Roberts gave notice of his de-
sire to withdraw from the association. But
it is averred that at the time Roberts was
delinquent $95. The bylaws of the associa-
ton are pleaded and it is averred that a
custom prevailed in the association not to
recognize withdrawal notice given by per-
sons In default. 1t is curtEer admitted that
Roberts was not a borrower and the court
is asked to construe the bylaws, and if in
his opinion it was improper for the associa-
ton to disregard the notice given by Rob-
erts because he was in default, the associa-
ton offers forthwith to pay the amount due
him on his stock.
The answer admits that the April divi-
dend in 1897 was passed, and that dividend
has not since been declared or paid also
that in May Of the present year an assess
ment of IA per cent was made on the cap
ital stock and unpaid earnings. 1t is denied
that any preferences have been shown to
Withdrawing members, but it is admitted
there have been large number of with
drawas. The reason for this is thus
stated Owing to the stringency of finan-
cial affairs and feeling that had become
prevalent in Indianapolis that certain build
ing associations had been improvident in
their management, together with a general
distrust of investments in building associa-
lions in the fall of 1896, a very large number
or members of the association gave notice
Of their desire to withdraw the amounts due
them under the bylaws. 1t was impossible
for the defendant to pay the amounts so
demanded any fastc~ than ii did
1t is admitted that the association has
been transferring real estate TO parties will
ing to accept the same in payment for with
drawals, but it is denied that there has
been Partially in that respect The neces-
sity of passing the April dividend and of
is attributed to the financial stringency,
and to the fact that the association had be-
come heavily loaded with real estate which
suffered great depreciation. The charge
that the association has been specializing is
denied, and the answer asserts that the in
stitution is not insolvent The answer fixes
the assets at $l66,Ol2G3 and the liabilities at
$751;, 438. 4S, of which Indebtedness Sl51 l76 59
Is TO members of the association; S. 900 due
the Connecticut Mutual Life Insurance
Company, representing a loan made in April
on the office building of the association at
Washington and East streets, and 81 800 in
other mortgages. The directors in their
answer express the opinion that they are
more competent than receiver to continue
the business of the association.
With the answer is filed two voluminous
exhibits stating the assets ana liabilities OF
the concern in detail. The highest valua-
ton OF any asset is that placed on the build
ing at Washington and East streets. This
item is given at $4,000, and the total Valua-
ton or real estate is fixed at 500, 46l. SO.