The record-union., 1898-02-11


their duty.
Then H. Weinstock took the floor. He
started in by saying very quietly that
the shareholders had assembled to take
the best action possible under the cir
cumstances. They ought not to let pas
sion get the better of reason, even
though they felt that they had been
substantially robbed of their money.
Mr.. Weinstock said he had sympathy
for the frailty of humanity, and under
stood that all men were subject to mis-
takes and that none were infallible. He
would not feel inclined to deal too
harshly with men who had trusted in
others, and had been deceived. He had
been deceived himself. He could un-
derstand how much a President of an
Incorporation would depend upon Sec
retary, and he could understand how
such a Secretary could impose upon a
President, but he could not bear with
deliberate, intended fraud, which he
understood had taken place in the as
sociation. Mr.. Johnson, he said, had
informed him that it was the duty of
the President of the association to make
an annual sworn statement to the
commissioners, showing the standing Of
the association. He understood that
the President had on certain occasions,
made sworn statements that properly
on Sherman Island was worth $4,000,
when it was not worth a fraction Of
that amount. The President had sworn
that property in Oakland Woodland
and the Pythian Castle in this city
were worth double their actual value.
That" continued Mr.. Weinstock, is
perjury! That is fraud, and under the
laws of the land is a criminal offense.
l believe in making allowances, put l
also believe in protecting the innocent
and in making an example of those who
commit such acts. The question is,
shall we vote on Mr.. Devlin's motion
or Mr.. Johnson's resolution
''Johnson's! Johnson's!" came from
all parts of the house.
Continuing, Mr. Wenstock said it
might be as Judge McKune held, that
the expense of taking the matter into
the courts would be borne by the State,
and if such were true the expense would
be reduced to a minimum. He did
know that insolvent concerns never
realized much after they had passed
through the hands of a receiver. He
felt that could the matter be kept out
of the courts the best results would ac-
crue to stockholders, but that if to keep
the matter out of court meant to waive
the right to prosecute the officers OF
the association, then he would favor
going through the courts if it took the
last penny. The law, he said provided
that secured creditors should be paid
first, ard that the stockholders would
have to take what was left, and if,
without waiving their rights, the asso-
citation could go on with it's business,
it might in the end pull through with
small loss.
Judge McKune explained that no
member can bring suit against a Direc-
tor, but that the association must do
so. If a receiver We're appointed he
would act for the entire association,
and would no doubt bring such suit
if it were deemed advisable.
Mr.. Devlin disagreed with Mr.. Vein
stock and Judge McKune. He stated
his views at considerable length, after
which Mr.. Johnson got the floor
Mr.. Johnson differed from Mr. Minear.
He said he did not want to trust to
the men who had robbed him to get his
money back. Mr.. Steinman, at form
er meeting, had refused to resign his
office, and unless the matter was taken
into the courts he would be allowed to
settle the affairs of the association. If
the stockholders did not go into law
they would not, he said, get one cent.
He had seen fraud in this city before,
but that he did not propose to see it go
free now. He would spend ten times
what he had put in to get his money
back. He said there was not an hon
est debt the association owed, and that
every cent against it was illegal. So
called debts would take every cent and
more too The only way without go
| ing into court was to recognize the
| parties holding securities as creditors.
He held the Farmers and Mechanics
Bank to be not creditor, and a re-
ceiver. if appointed, would demand the
securities it holds, and if refused.
| would institute proceedings which
would al once bring matters to a head.
| Mr. Johnson said he was not talking
as a paid attorney, but as stockhold-
er. and that he had for the past eleven
years been putting his money into the
association It was the voice of Dew
lin that had spoken, but the hand and
the power behind it was Steinmans.
Then Mr. Steinman said that Mr..
| Johnson and Mr.. Weinstock had been
| looking around for a scapegoat, and
! had come to the conclusion that he
would make a good one. As matter
of fact, he was the heaviest stockhold-
er in the association, and for twelve
years had put in $50 a month, the full
amount being $6,950. If he had COM
mitted perjury he was amenable to the
lawss He had not ran away, as did
Alsip.
The roll was finally called on Mr.. Dew
Inns motion to lay the resolution on the
table, and it was lost by vote (by
shares of stock) of 294 ayes to 733
noes.
Mr.. Johnson's resolution was then
! adopted by a similar vote.
! On motion Of Mr.. Johnson, commit
| tee consisting of j. II. Devine, IL. Vein
stock and Mrs. Jordan, was appointed
to urge the appointment OF capable
receiver, and further motion to ad-
j journ to the call of said committee was
carried though for some time President
| Steinman demurred to putting it TO q
vote, holding that no committee had
right TO convene the association.
| Weather Reports.
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