The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1899-05-02
MIR. ULMER's CASE.
His Petition for Issuing ola Temporary
injunction Refused.

I'M JUNCTION Refused.
In the Supreme Court yesterday after
noon. W. Edwin Ulmer, ESQ.,, presented
a petition praying for a temporary In
junction against the Falmouth Loan and
Building Association and asking for the
temporary receiver of this company on
the ground that the association had
loaned money In excess Of the amount
allowed by the bylaws, that it had re-
ducsd the amount Of the monthly premi-
ums and rewritten some existing con-
tracts and that all of these things had
rendered to injure the association and
decrease the dividends of the stocKhold-
ers Of the company. Mr.. Ulmer's petition
was opposed of course by the Falmouth
Loan and Building Association, repre-
ssnted by its attorney, George Libby,
Esq. Josiah H.. Drummond appeared In
court and asked that the petition be
dismissed on the ground that the pro-
ceedings should have been instituted by
the bank examiner as provided for In the
statutes. Judge Wiswell decided to hear
Mr.. Ulmer's evidence on this petition
and the case proceeded, though the mo-
ton to dismiss the case was filed by Mr..
Libby.
MIR. Uliner by the records Of the office
of the register of deeds ana by witnesses,
showed that on one occasion the Fall
mouth Loan and Building Association
had loaned $4,000 to Frank B. Libby on
some hotel property at Prout's neck and
taken mortgage on this property. Later
another loan Of $1,000 had been made on
this property. The by-lows of the associ-
alton provided that only 5000 should be
made on one piece OF property. 1t was
shown by the evidence MIR. Ulmer him
self introduced that this mortgage had
been discharged on April 90, long time
before the suit in equity was brought.
Judge Wiswell decided that this piece of
evidence would not induce him to grant
temporary injunction against this COM
pany even If it should be proven to have
been an Illegal transaction which he by
no means admitted it was.
AS to the other contentious made by
Mr.. Ulmer. it was admitted by MIR. Lib
by that the Falmouth Loan and Building
Association had reduced its monthly pre-
miums by the advice of the bank exami-
ner after the passage Of the act regarding
loan and building associations by the leg
islature two years ago. The reduction in
to the borrowers and the stockholders of
the company.
As to the reduction In the dividends of
the association, it was shown by the evil
dence that the dividends had been some
what reduced in the past few years, but
this was only due to the natural reduc-
ton in the rates Of interest in all forms
of banking business.
AT the conclusion of the hearing Judge
Wiswell denied the petition for the ap-
pointment of a temporary receiver for
this company and the prayer for tenn
porary injunction.
The petition for the appointment of a
receiver and issuing of temporary in
junction against the Maine Real Estate
company was also denied. This was an
other form of the same case brought by.
Mr.. Ulmer.
BANK EXAMINERS STATEMENT.
Bank Examiner Undertake was in the
city yesterday and was present at this
hearing in the Supreme court. he ac-
corded PRESS reporter an interview
aud when asked about the matters arts.
ing in this case to which reference was
made to him and his duties, he said:
''In the first place twill be well for
you to understand that the loan and
building association is an institution es-
tablished to assist the borrowers and not
the lenders of money, being just the re-
verse of savings bank which exists for
the benefit of the lenders of money
alone.
The income of loan and building asso-
Citations has been reduced in the last few
years from 8 Der cent to l.2 per cent
and this reduction applies not only to
the Falmouth Loan and Building Asso-
citation, but to the institutions of this
kind all over the state.
The bill of Mr.. Ulmer complained of
two acts of this association, first that the
association had loaned money in EXCESS
of the amount allowed to be loaned by
its laws. On this charge it was shown
that the loan had been repaid In full be.
fore the bill was brought and that the
loan was not greater than would and
in fact was afterwards loaned ON the
same property by a conservative savings
bank. In conformity to the statutes of
the state the association was justified in
making this loan.
The second charge in Mr.. Ulmer's bill
was that the premiums had been reduced
without the consent Of the stockholders.
In 1896 In my annual report to the legis-
lature took up the matter of loan and
building associations and showed that
these associations were charging more
interest than l deemed it advisable for
the borrowers to pay or for the stock
holders to charge. Yhe legislature acting
ON my recommendations passed a law
fixing tile premium rate at 40 cents on
a share per month All the assOciations