The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-20
1ONTINE co.
MUST QUIT
Judge MCGEE Orders a Big
Minneapolis Company
to Dissolve.
Geo. P. Flannery Has Been
Named to Act as
Receiver.

Judge MCGEE, in an order filed to-day,
dissolved the Tontine Savings associa-
ton, whose diamond contract plan for
''getting rich quick" is known all over the
country. The charter and articles of in
corporation are declared forfeit and it
has been ousted from all the rights and
privileges under its franchise. George P.
Flannery, the attorney, has been ap-
pointed receGer and directed to take
vert them into cash.
Thus ends the career of a concern that
has been doing "a hourishing business in
this city since 1894 under various guises.
1t occupied whole half floor in the New
York Life building and showed every
evidence of prosperity. The dividends
were said to be unheard Of in any
legitimate enterprise.
Judge McGee has given the case the
most careful attention ever since Attorney
General Douglas applied for the for
fixture of the franchise. Not only has
he applied himself diligently to the study
Of the law, but he has gone over the
books carefully. In this work he i'm
ties. The order with the accompanying
findings OF fact, conclusions Of law and
memorandum will make a book of about
10000 words.
The affairs OF the company, it's history
it's method Of doing business and the re-
suits which would ensue if it is allowed
to continue are extensively treated and
the court evidently believes that the plan
is dangerous and vicious.
The association in it's advertising had a
cut of the handsome New York Life build
ing on which had cleverly been imposed in
place of the name of the building the
"Tontine Savings Association" Under
meath was printed the words THE Home
of the Tontine Savings Association >
While it was not expressly advertised
that the company owned this magnificent
building, which is worth about million
dollars, the idea was conveyed by sug-
gestion, says the court in the memoran-
dunn, and It's advertising in this respect
was calculated to deceive the public. In
addition the association published peri
odical known as 1.-THE Diamond Bulletin, -
which purported to give facts regarding
the progress of the business with refer
ence to maturing Of contracts and other
matters of interest to the investors. This
bulletin was full of misleading informa-
ton and misrepresentation. .--
After giving history of the company
from 1894, when it promulgated its ''dia-
mond' scheme among those looking for
small investments, Judge MCGEE outlines
the plan of the present company, which
is conducted on somewhat more conserva-
tive lines. The company does not prom
Use as much as 1t did seven or eight years
ago, but the foundation of it's methods is
unsound and will eventually lead to ruin
if allowed to continue. The longer it re-
mains the more disast rous will the crash
be when the end comes.
After the review of the testimony the
conclusions Of law are stated in brief as
follows:
First-That the diamond plan of the re-
spondent association and the manner in which
the same has been executed are illegal i'm.
moral, vicious and fraudulent; that said plar
cultivates stimulates and tempts cupidity ant
fosters a spirit of illegitimate speculation ant
gambling, and amounts to and is an abuse anC
misuse of the corporate powers and franchises
conferred upon the said association by the
statute under which it is incorporated; tha
such misuse and abuse have worked ant
threaten substantial injury to the public ant
amount to a violation of the fundamental
conditions of the contract by which the fran
chse to exist as a corporation was granted
Second7-The plaintiff is entitled to judg
ment, as follows
First--Forfeiting the charter and articles o
incorporation and oustfng the responder
from the right to exercise the franchises,