The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-13
A CASE HEARD AT NIGHT
PETITION FOR RECEIVER OF THE
EQUITABLE $. AND L. ASSOCIATION.
Judge Allen POstpOnes a Decision
The directors Holding Meet
ing at Same Time.

A suit to have the Equitable Savings and
Loan Association, one of the largest So
cieIies of it's kind in this city, thrown into
the hands of a receiver, was brought late
yesterday evening in the Circuit Court. The
application for receiver was made by Mamie
Lewis, employed at the establishment of
Paul III. Krauss, on East Washington street.
She was represented by Attorneys Barrett
and Warrum, who urged the necessity of
a receiver. The plaintiff claims to hold one
share of stock in the defendant association.
Judge Allen gave the attorneys hear
ing last night, and for two hours the affairs
of the Equitable were discussed. The asso-
citation was represented by Carson &
Thompson and Attorney Clifford. There
appears to be a wide discrepancy in the
contention of the litigants. While the plain
tiff charges that the association is wholly
insolvent, the attorneys for the concern
contend there are $4,000 of assets. and they
say the association is more than able to pay
every shareholder one hundred cents on the
dollar. While the attorneys were talking
over the matter of a receivership 1t was I'M
derstood the directors OF the association
were holding a meeting at the secretarys
office, on East Market street, with the in
tention of deciding whether or not it would
1t was this fact that caused the plaintiffs
attorneys to insist strenuously on a re-
ceiver being named by the court.
AS set out in the complaint of Mamie
Lewis, she took one share of paid-up invest
ment stock in the Equitable Association in
1872 This share ReloH1g,sd IN what is known
week from March &C. 1882 until April 5,
1897, During this period she claims 70 have
paid, together with dividends declared to
fhx IF z ri
the plaintiff says she gave the secretary
notice that she desired TO withdraw from
usual ninety days notice, but says the sec
rotary refused TO pay her. After charging
the association with insolvency. the plaintiff
makes the assertion that the affairs of the
concern have been grossly mismanaged IT
is charged that assets have been paid cat TO
certain people out of the regular order OF
withdrawal. 1t is claimed the association
has sold a large amount of real estate at
loss, taking in payment stock in the ASSOC
citation that had not matured. thus giving
unfair preferences. A paragraph of the
complaint avered that the association was
contemplating further transfer of prop
erty In order to make more of these unlaw
sful preferences.
The attorneys for the association urged
the court to refrain from acting hastily
in the matter, and Judge Allen was inclined
TO look at the question in this light. He
questioned the ACCESSIBILITY of appointing
receiver If the litigation could be settled
In any other way Receivers and lawyers
to represent them. he said, costly lux
uries. Attorney Carson. while admitting
that a considerable amount of real estate
had been disposed of by the association. de-
clared that the $40 600 of property sold in
the last two months would not have
brought $4,000 under a receiver. The at
torneys denied that the affairs of the as
ISOLATION have been mismanaged They say
the secretary is constantly paying off men,
bers who have served notice of withdrawal
and that the plaintiff will be paid in her
regular order. Attorney Barrett, in insist
ing on a receivership. suggested that his
client would be satisfied to have either At
torney Carson, Clifford or Thompson ap-
pointed to take charge of the trust Judge
Allen finally said TO the attorneys that he
would not appoint a receiver at present
but would put OFF the matter until Jan. 25
when he would name some one TO act, If
It was agreed this was best for the interests
OF the stockholders
Last summer an application was made for
q receiver of the Equitable Loan and Saw
ings Association and after pending several
weeks in the Superior Court Judge McATas-
ter decided that a necessity for a receiver
did not exist. At the time an Investigation
OF the affairs of the association was made
by the state auditor. For some time the
directors OF the Equitable have been con-
sidering the ACCESSIBILITY of going into vol
untary liquidation under the new building
and loan law. The directors met last night
for the purpose of deciding this matter but
before the meeting opened il was learned
that the suit for receiver had been brought
Attorneys Carson and Clifford, who are d.
rectOrs Of the association, We're called 10
the Circuit Court and the other officials
took no action while the attorneys were
absent. Afterward, on the recommendation
of Attorney Carson, the directors decided to
await the action of the Circuit Court be-
fore taking further steps.
The officers of the Equitable are: William
F. Barrows. president; Gottlob c. krug,
vice president; Leonidas G.. Dynes, secre-
tary; Roswell S. Hill jr treasurer The di-
rectors include these ofices Ia addition to
" q. Clifford. A. u. Lombard, Thomas Tall
lentire, Charles p. Lesh and J. f. Carson.