The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-29
RECEIVER APPLIED FOR
CHARGES AGAINST MUTUAL HOME
AND SAVINGS ASSOCIATION.
w. I. Ripley Complains of Over
Made by Secretary Rhodes.

All dppH1dlloH ZOE the appointment Oh d
receiver for the Mutual Home and Savings
Association was made in Room of the
Superior Court yesterday by William l.
Ripley, who alleges that the association is
not conducted according to law, that it is
extravagantly managed and that an exam
ination of the books of the association
will disclose that it is insolvent. Ripley,
in his complaint, says that while Isaac
Thalman is reported to be the president of
the association he is only nominally SO, as
he has been in too i'll health for the last
two years to attend to business, and that
the entire affairs of the association are
conducted by William A. Rhodes, the Sec
rotary. The complaint alleges that the
sc ;retary maintains an expensive office, en-
employs expensive clerks and pays himself
a large salary, the amount being to the
plaintiff unknown, but which, he alleges,
the books of the association will show to
be exorbitant. He asks that the court shall
direct an examination of the associations
books and that a receiver be appointed to
wind up its affairs
William |. Ripley alleges in his complaint
that in 1891 William A Rhodes, the secre-
tary of the association, procured a loan
of $1,000 on lot owned by himself and wife
in this city, which they afterwards un-
loaded' on D. A. Woodland and Wife
subject to the same lien. Subsequently the
plaintiff and Charles E. Reynolds bought
the lot subject to the balance of the mort
gage still unpaid. Afterwards he acquired
title to the land from Reynolds. He says
that up to June %, last, he and his prede-
cessors had paid upon the loan a total of
$9S4.75 on which date he rendered $500 in
full Of the balance due the association,
making total he paid or proposed to pay
of 81 784-75, requesting the defendant to
satisfy the mortgage of record. This was
refused Figures given him showed that he
had been credited with but sos on the
principal. He alleges that on the basis of
credits given it would take twenty-seven
years to pay off his loan.
He alleges that the association is not
mutual in the sense contemplated by the
statutes of Indiana, inasmuch as the Dor
rowing member gets no dividends, while
dividends Of IA per cent. are paid to non
borrowing members. instead of being
mutual association, it is charged that it is
simply money loaning and investing con-
Germ operated for the benefit of nonbOrrow-
ing members. He declares that all premium
and interest above per cent. which he has
paid in is usurious and void. By virtue of
the facts alleged, the plaintiff asks that he
be permitted to recoup all interest and
premium above per cent. and have the
amount credited upon his loan.
MR.. RHODES'S STATEMENT.
w. A. Rhodes says that the office is not
eXtravagantly managed. He receives a
salary of one-half cent on each share each
month, which amounts to about $780, in
addition to which Office rent of $40 month
is paid, and one young lady is employed
at $40 a month, making a total of about
$500. Mr.. Rhodes says that this is the only
expense as no salaries are paid
to any of the directors. He says
that the reason there appears
to be so little to Ripleys credit
is because of the small payments made on
the loan. The association charges per
cent. interest and a premium of 10 cents
a share a week. Premium and interest on
the loan amount $145 year. The payments
have been 70 cents a week on each share,
or $3.50 a year Deducting the premium and
interest there was consequently but $2340
applied the first year to the payment of the
principal This was deducted from the
amount of the loan and premium and inter
est only charged on the balance, according
to Mr.. RhodeS'S figures He SAYS that If
the borrower had been required to pay the
premium and interest weekly in addition
to the dues, as some OF the associations
require, the loan would of course have been
reduced 10 greater extent: me borrower,
however, is given the privilege of making
small payments, if he SO desires, or may
make larger weekly payments and run the
stock out sooner. He says that instead of
taking twenty-seven years to pay out it
would take seventeen on the basis of the
payment Ripley has made Mr.. Rhodes
says that these questions were all decided
by the Superior Court not long ago in d
suit brought to forecloSe a mortgage, when
the judge held that a premium Of 10 cents
a week and interest at per cent. was not
usurious. The secretary figured out that
it costs the borrower 11.2 per cent. to carry
a loan in the association, while in others
it is much higher. He says that there is
no expense fund He insists that the asso-
citation is mutual. While the borrowing
member Is not credited with dividends he
gets a benefit by having his loan reduced
every year to the extent of the excess of
his payment over premiums and interest.
Mr.. Thallman has been in bad health
for about a year" Mr.. Rhodes further said
tended to by Chaplin G. Foster, vice presi-
dent. The expenses of the association are
about So 600 a year, which includes all sal
aries and office expenses. No officer re-
ceiVes q cent except the secretary and the
expenses are paid from the earnings. We
have no expense fund. In the report of the
commission appointed to make report and
draft law to be presented to the last
Legislature the MutuaPs per cent. OF eX-
penseS was between and per cent, and
less than that of any other association eX-
cept one The assets Of the association are
about $3.50 000 1t has promptly met all de-
ways been earned and have never been
passed. The checks for the July dividends
have already been mailed. In fact, the
ISOLATION is in good condition and it is earn
ing money for it's stockholders.
Thirty Days for This Saloon Keeper.
Abraham Bone, the South Illnois-street
saloon keeper arrested Sunday after the
police had broken down the door to get
in, was fined on four charges yesterday
morning in Police Court. The charges were
selling liquor TO minors, assault and bat