The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-07-24
A RECEIVER APPLIED FOR
FOR THE ". i. NATIONAL BUILDING
AND loan ASSOCIATION.

Bank Superintendent Kilburn Moves Mt
| the mitigation of James l.. He'll. who
Says Control of the Concern Was Secured
by New Man by Pledge of its Credit.
j. y. Walter. President Of the New York Ma
| tional Building and Loan Association. with
| of1ces at ii Broadway. was served on Thursday
| with papers directing him to show cause be-
| lore Justice Slower to-day in the Supreme
Court. Brooklyn. why he and the other officers
OF the association should not be permanently
enloined from paying out any more OF tho
| funds OF the association. and why q receiver
should not be appointed to wind M its affairs.
The action is brought by the Attorney Cen
| eral at the recommendation OF Superintendent
| Frederick D. Kilburn Of the State Banking De-
nartment partly on information obtained from
| James L. Bell OF 30 Nassau street. who is
| shareholder and director. and who on July 4
submitted to Mr. Kiburn a statement about
the AFFAIRS OF the association. The assets OF
the association according to itslast report. are
$4,000. and there are about 5000 share
holders. Mr.. Bell said to a Sun reporter yes
terday:
In my statement to Mr.. Kiburn I gave
| full account Of my connection with the COM
| pany W. n. Thompson was formerly Pres-
| dent OF the association Last year Walter
wrote 70 me that he had a chance to secure
control and wanted me to furnish him man
| with $4,000 to back his. scheme. secured
the man in the person Of j. q. Foster The
money was to be used to buy out the interests
| Of Thompso and the other officers. On the
9Th OF October last, the money was paid over at
meeting OF the directors and Thompson and
Snfr w%r eg
| and Treasurer As | declared In my statement
to NJ kiburn, r three notes for sI5,Oo9. siSp9d
given s to Foster 70 secure him, iof his loan:
for the use Of the sGooJJp cash The notes
were payable eleven days after date was
for have received only a note for $4,000, which
never Set s FSs bact discounted Foster
| Bell produced copy of n letter which he says
Walter wrote TO him. and which is included in
bis sst snS to Mr. kiburn Il is dated Dec.
loan association IN this State is cqmPsiiSi y
Department, wherein they recite it's assets and
liabilities II we include in that statement
come upon us and place the association in the
hands OF a receiver. besides beginning some
1G ID acton cE%ns all Of the
| these circumstances the laims Of Foster could
not be sustained against the shareholders. We
intentions will see carried out TO the letter il
| which could not DO collected in any other way.
/ am confident that no one In this manage
| luent expects or wants 10 aYOlO II. propose
| that you see him and explain tho situation and
| where we all stand. II he will surrender mo
the m notes | VII cancel them SO tina, they
| tho first Of January will give new ones. so
| that they may act aa memorandum of what
honest men intend to do had expected to
| pay of a portion Of the notes by the 18th Of
| January. but as the department has ordered us
| not TO pay any more Withdrawals or make
| loans or purchase properties until we get an
appraisement OF all properties now owned by
the association. must comply with these or
ders:"
their place"