The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-07
ALL THAT THE SHAREHOLDERS IN
NATIONAL BUILDING ASSOCIA-
TION HAVE AS SECURITY.
ATTORNEY GENERAL SUES
TO HAVE A RECEIVER NAMED FOR
THE NORTH AMERICAN
COMPANY.
CONTINENTAL IN COURT, TOO.
shareholders Also Petition the Dis
trict Court to Appoint Il Re-
ceiVer for 1t.

There is a great deal Of question as
to the status of the st. Paul building
and loan associations doing general
business, which took advantage OF the
1897 law to go into liquidation, as, in
deed, there is also in regard to similar
associations in Minneapolis.
The G. 10 b e recently published list
of these concerns and commented on
the uncertain condition in which the
shareholders found themselves
Judge Elliott, of the district bench
for the Fourth district, has recently
passed upon the law under which
these concerns went into liquidation,
and. if reports received at the capitol
are true the Minneapolis newspapers
having given little notice to the suit
which involved prominent politicians
in that city, the Minneapolis Jurlst
does not leave chapter $50, Laws of 1897
a single foot on which to stand.
In the first place, Judge Elliott holds
that the absence of the required en-
acting clause renders the supposed
law invalid, and of no force.
1t was thought by the supporters
of the law that they might be able
to establish that the action of the leg
islature itself was unimpeachable, and
that the error, if such it was, occurred
in preparing the measure for publica-
ton, but this contention is compare
lively immaterial when viewed in the
light of Judge EIlliOtt's second premise,
which is that the law is unconstitu-
tional, in that it pretends to legalize
the impairment of contracts.
This decision, if sustained by the SUI
preme court, to which it will inevitably
be appealed, leaves the shareholders
in these concerns in a very embarrass-
ing predicament While the fact that
they had q color of legality to their
liquidation proceedings will presuma-
bly, relieve from liability for criminal
proceedings for the dimunition of the
resources of the concerns While under
going the liquidation process, the fact
that these concerns, in the face of the
fact that the law was lacking in what
has, in similar cases, been held to be
an essential of a valid enactment, is
believed tc be abundant evidence on
which to fix the personal liability Of
INC ullGCIOlS, w IlO IOlioplA CNJ IL III
term be used in it's correct sense, to
the winding up of the concerns. q.
The inevitable result seems to be Il
suit by each shareholder. In equity,
the defendant might plead that their
illegal action was not damaging finan-
cially to the shareholders, but, in the
face of the activity with which direc-
tors of the concerns involved lObbied
for the law during it's passage through
the legislature, it now appears as
though the shareholders had a valid
claim against the men who were the
managers of their trust funds.
Public Examiner Kenyon and Attor-
ney General Childs have conferred in
regard to the situation, and decided
to go to work under the old law.
Yesterday the attorney general ap-
Piled to the district court for an order
appointing a receiver of the North
American Savings and Loan company
of st. Paul. The complaint filed in the
district court yesterday alleges that
the concern is wholly insolvent and
that it has already taken steps to go
into voluntary liquidation, as set forth
in a resolution adopted by the board of
directors on May II, 1897.
The complaint further recites that on
Oct 49, 1897, the defendant corpora
ton filed in the Office of the state pub
lie examiner a statement of its liabili-
ties and resources as follows:
Liabilities -.
Nm CT cD1