The record-union., 1899-10-25
SAYS THE SUPREME COURT.
UNION BUILDING AND LOAN
DECISION.
The Courts Reasons for Removing
the Receiver-Points OF
Local Interest.

The decision of the Supreme Court
removing the receiver appointed by t1s
Superior Court of this county for the
Union Building Association to wind up
its affairs was written by Commissioner
HAYNES. and concurred in by Commits
sioners Gray and Chapman. The rec
concentrations and conclusions OF the
Commissioners were adopted by JUS
tices McFarlane Temple and HenshaW
of Department Two of the Supreme
Court
The cases. two in number, were en-
titled The People VS.. the Union Build
ing and Loan Association. The de-
cision in full is as follows:
These are separate appeals taken
upon the same record from the same
Judgment upon the judgment-rolL
The appellants. however, are repre-
sented by different counsel, who have
also presented separate briefs. The hrst
IS taken by the corporation and the sec
ond by director q. Tozer). They
present the same question for decision
and may therefore be disposed OF alto
gether.
AS the title of the case indicates, the
defendant corporation is building and
loan association. In December, 1891,
the Commissioners of the Building and
Loan Associations of the State of Cali
fornia made an examination OF the
business and affairs of said corporation
and reported to the Attorney General
that il was conducting it's business in
an unsafe manner such as to render it's
further proceedings hazardous to the
public and to those having funds in it's
custody and thereupon this action
was brought by the Attorney General
under and in pursuance of the pro-
visions of Section 9 of the Act creating
said Board of Commissioners. (Statutes
of 1893, page 231.)
The defendant answered and upon the
hearing findings were made and judg-
ment entered enjoining said corporation
and it's directors. servants, etc. from
the further prosecution of the business
of the defendant corporation until the
further order of the Court" and ap-
pointing a receiver to take possession
of it's property and effects of every de-
scription and subject to the order of a
Court of Equity and settle up the busi-
ness of the corporation.
The only question presented is
whether the averments of the COM
pIdlnI ana the lluUluSS lhC
Court to appoint a receiver to take
charge of the corporate affairs and set
tie and liquidate the business OF the
corporation.
The only allegations of the complaint
tending to Justify the relief granted are
the following:
That since the organization of the
said corporation the said corporation
hac M
upon real estate security and in default
of payment of said loans has been COM
PEELED to take said property in pay
ment of the moneys so loaned and in
terest thereon: that the costs of said
real estate so obtained and now owned
by said corporation exceeds the sum
Of SIP, ,215.42; that there are now out
standing liens on real estate to the
amount of $90,11S.24: that since making
said loans upon said real estate and
acquiring the title to the real estate
as aforesaid, the value of the said real
estate has greatly deprecated, and is
now depreciating, which has reduced
and will continue to reduce the assets
of said corporation to such an extent
as TO render the further proceeding and
conduct of the business hazardous to
the public and to those having funds
in it's custody.
That plaintiff is informed and ,Jbe-
lieves and upon such information and
belief alleges that. unless the said de-
PENDANTS are enioined and prohibited
by this Court from the transaction of
any further business, the said defend
ants will continue to prosecute and
transact such business to the irrepar-
able injury of the people of the State
OF California
The prayer is for an injunction and
eff the Court shall deem it expedient"
that a receiver be appointed.
The only finding touching the existing
condition of the corporation is the fol-
lowing:
That actions have been commenced
against the defendant corporation on
promissory notes aggregating $500,
and property Of the said corporation is
now and for more than twenty-nine
days has been under attachments levied
thereon in said actions and there are
no funds available with which TO dis
charge said attachments and Indebted
ness
That the necessary disbursements
exceed the income of the defendant
corporation: and if the said corpora
1ion continue its business it's necessary
disbursements will continue to exceed
its income.
THAT the said corporation has been
compelled TO take in satisfaction of
loans a. large amount of real estate
which since taking has greatly depre-
ciated in value. and there is no assur-
ance or probability of any increase in
it's value.
THAT there is a large amount of in
debtedness OF, said corporation now due
and there are not sufficient assets on
hand that can be realized upon where
by said corporation will be able to pay
said Indebtedness in any reasonable
time; that to continue the business OF
said corporation under such circum-
stances would require that a consider
able portion of the monthly dues OF
the members and stockholders be used
for the purpose of discharging the de-
ficit in current expenses and interest