Evening star., 1901-07-20
PETITION DENIED.
Judge Declines to Appoint Receiver
for Security Investment Company.

for Security Investment Company.
Justice Bradley, in the Supreme Court OF
the District this afternoon, declined 10
grant an order providing for the appoint
ment of a receiver and the issuance OF an
injunction for the Security Investment
Company of this city and to prevent that
company from disposing Of its assets. A
petition praying for such action by the
court was recently filed by Sarah E. Jen-
kins for herself and as executrix for her
sister. Susan Hincks, against the company.
and Robinson White and Archibald NJ.
McLachlen.
organization formed for the purpose OF
carrying on an investment business, and
number of department clerks and others
throughout the city are said to be Stock
holders.
In her bill Of complaint Sarah E. Jenkins
claimed that some years ago she purchas-
ed block of six shares of the stock or
the company for which she paid $500, and
that Susan Hincks had also bought ten
shares paying therefor the sum of $500
The company, she claimed. agreed to pay
her and her sister 10 per cent in interest
or dividends on their investment, and that
any time they wished to realize on their
stock they could do SO at the face value
of the property.
The petitioner states that for a period OF
three years she received interest or divi-
dends at the rate enumerated, but at the
expiration of that period such payments
stopped. She further alleged that the pay
ments were made from purchase money
and not from profits realized by the COM
pany upon it's Investments. She claimed
also that the company was insolvent and
that the assets had been wasted and other
wise impaired. The company, she stated,
claimed to own a great deal of real estate,
but she had knowledge that 1t was all
situated in a remote section Of South w ash
ington near the James Creek canal. She
further charged that officers of the COM
pany were attempting to dispose OF the
assets at a figure below their real value.
The answer of the company contains as
sertions controverting these allegations. 1t
states that the capital stock of the COM
pany Is STA, $50, and that the stockholders
clerks, but that there are no children in
terested in the concern, as has been al
legged. It adds that the money of the COM
pany has been invested in the discretion OF
it's managers, a policy fully authorized
under the provisions Of its charter. and
that the unincumbered real estate held
amounts to s26, ,465. 50; other assets, $12,-
277. 90; making a total Of S3S, 396, upon
mated value of all equities of the company
is stated as S35, 096. 1t Is admitted that
the complainant purchased six shares OF
the stock of the company, but denied that
she did under cash agreement. 1t Is
stated that the complainant entered into a
contract about November 25, 1887. for her
stock, and agreed to pay for 1t in INSTALL
ments of $40 each. and that under this ar
rangement it was not fully paid for until
June q, 1890. No claim was made by the
company, 1t is stated, that 10 per cent in
tereSt or dividends would be paid, or that
the stock would be redeemed at it's face
value upon presentation to the company.
1t Is also denied that payments Of divi-
dends or interest were made out of the pro-
ceeds Of sale of stock. and emphatic de-
NAL is also made of the assertion that the
company Is insolvent or that it's assets are
being wasted and impaired None of the
company's officers. it is stated, are at
tempting to sell or dispose Of the stock Of
the concern, in an effort, as alleged, to
raise fund to buy out the interests Of the
other stockholders al a low figure, and thus
secure the bulk OF the assets. The COM
pany sta .es further that 1t is ready at all
times TO communicate such information re-
garding the status Of the institution as
may be desired. The liabilities Of the COM
pany at the present time are stated to be
S2l, 1864. which is an amount considerably
1t is claimed, smaller than the figure pre-
vailing few years ago. After hearing ar
guments in the case, Judge Bradley today
dismissed the bill of complaint