The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-06
AGAINST THE COMPANY
HOME COOPERATIVE UNION HAS NO
RIGHTS IN THIS TATE.
Opinion of the Attorney General Pre-
pared at the Request of State
State Auditor Hart.

Attorney General Taylor yesterday rem
dered an opinion i'm which he holds that
the Home Cooperative Union of Lima, o.,
has no right to do business within the State
o. Indiana. The opinion of Mr.. Taylor puts
a quietus on one of the most seductive and
plausible schemes that has ever been
worked In this State. Within the last sixty
days agents representing the Ohio COM
pany have sprung up all over the State like
mushrooms in a night, and so tempting
were the surface indications that thousands
Of members had been obtained before the
matter was brought to the notice of Auditor
of State Hart. In the last few days he has
been the recipient Of many letters concern
ing the Ohio company, and it was in re-
Spouse to his Investigations that Attorney
General Taylor has given an opinion which
will put a stop to the furtherance of the
scheme.
The Home Cooperative Union, with head
quarters at Lima, o., is the parent organi-
cation of all the fraternal societies that are
now seeking to do business in this and
other States. The attorney general of Ohio
has already brought suit in the Supreme
Court of that State to forfeit its franchises
on the ground that there is no law by which
IL can do business. IL the State is success
full in its suit a receiver Will be appointed
for whatsoever assets may be found, and
the contributing members will be left with
the bag to hold. AS the Home Cooperative
Union is a foreign corporation, 1t cannot do
business in this State without a license, and
an attempt to 90 so would be deemed a
misdemeanor and the party soliciting sub
scriptions would be subject to both fine and
imprisonment.
ATTORNEY GENERALS OPINION.
In the following opinion Mr.. Taylor ex-
poses in part the fallacies of the scheme:
az have carefully examined the consti-
tuition and bylaws, the form of application
for membership n the literature of the
Home Cooperative Union, of Lima, ..
This concern is attempting to do a bust
ness similar to that of the Fraternal Co.
operative Association of this city, con-
corning which 1 have already given you
an opinion.
"A member of the Home Cooperative
Union pays 20 cents a month on each
share share, 5 cents of which goes into the
expense fund and Is cents to the so-called
investment fund. The same vicious with
drawal and forfeiture features are found
In this concern as appear in the bylaws of
the Fraternal Cooperative Association.
There is no provision for Withdrawing
prior to two years without losing all the
mei1 DESIRES sa to p Withdraw dr; amer he m awV a yea so bx ~
giving thirty days notice, and at the end
of that time he receives back only the
benefit fund, or 10 per cent. of the prihci-
pal of his investments without interest or
profits.
"If sickness or misfortune assails a
member the trustees may then grant such
terms of further extension as may be
d 1med est-whateyer that means.
THE FORFEITURE.
eff the member fails to make any pay
ment within ten days after SUI payment
is due he forfeits all he has paid thereto
fo.. ,,,Iao. xrsfhsa <xuvo-fr z.--- -. 49,
of notice he pays up all unpaid dues: other
wise all money paid on his subscriptions.
no matter for how long a period he may
have been d member, or however so much
money he may have paid on his subscrip-
tions, is all forfeited to the union.
II conclude, as follows:
"First-That the Home Cooperative
Union is attempting to do a building assoc
citation business under the guise of a cor
poration to buy and sell real estate.
"Second-That. if IL does business in In
diana, it must be under the foreign build
ing association act, in force May IS, 1893
(Acts of 1893. p. 2I4)
"~Third-The withdrawal and forfeiture
features are wholly obnoxious to both the
spirit and letter OF the Indiana statutes
governing the organization OF building
and loan associations and investment
companies.
"Fourth-As an investment company
you have the undoubted authority, under
said act OF 1893. to examine and license
same to do business within this State. and
until so licensed this concern has no right
TO do business within this State of any
kind or character: and IL any person or
persons solicit subscriptions to the capital
stock of such concern without first pro
curing your certificate of authority. as
provided for in Section 6 of the above
mentioned act. the party so soliciting SUBJ
scriptions shall be deemed guilty of a mis-
demeanor. and upon conviction may be
fined in any sum not exceeding $500, 10
which may be added imprisonment, all as
provided In Section II OF that law"