The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-30
MISUSEO HSPOWER
T0NTINE SAVINGS ASSOCIATION
MAY LOSE ITS CHAR
TER
CALLED BEFORE THE COURT
Are Doing a Different Business Than
That for Which They
Were IncorDo-
rated

Upon the application of Assistant At
torney General DonahoWer, on behalf of
the state of Minnesota Judge McGhee,
of the Hennepin county district court,
yesterday signed writ of quo Warranto
citing the TOntine Savings association to
appear before him Feb. 2, 1902 and show
cause why its charter should not be an
nulled.
The order was made upon the complaint
of Attorney Genral Douglas, who states
that the association was incorporated for
the purpose of buying and selling, own
ing, holding, dealing in, selling and nego-
and other evidences of indebtedness, TO
buy, own, acquire, improve, sell, eX-
change plat, mortgage and deal in lands
and real, personal and mixed estates
He states that the sole business in
which the association has engaged has
been the sale of a. certain contract de-
nominated a diamond contract, by which
it purports to sell two-carat diamond
of the value of 500 for $50. That the
money received in weekly payments on
these contracts is not invested in any
manner but that once every seven days
a portion of it is used to pay the parties
who have paid the full number of pay
mentS on the contracts, and elect to take
the money instead of the diamond.
That the association has no source of
income whatever, except from said con-
tracts.
The information says further:
And complainant further represents
and alleges that from the 1St day of Jam
uary, 1901, to the first week in December
1901, there has been unlawfully and fraud
ulently taken from said redemption fund
and appropriated to the use of the Of
ficers the sum of $103,O5S, and that the
sum of money so taken and appropriated
by the said officers and directors to their
own use is the funds and money paid IN
by the owners of contracts to the said
redemption fund for the purpose of re-
firing, canoeing and redeeming the con-
which fully D3lG H.
erwiSe.
'And complainant alleges that the said
plan and scheme of the said Tontine
Savings association is injurious to pub
lie interests, is conducted in violation
of the express purpose and objects of its
Incorporation and In violation of the
laws Of the state of Minnesota; that the
said defendant, by reason of the facts
and matters in this information alleged
is Offending against the provision of the
act creating it and is doing and is omit
ting to do acts which amount to a sur
render of it's corporate rights, privileges
and franchises, and is exercising rights,
privileges and franchises not conferred
uron it by law. That all Of the under
takingS and assurances set out in the
said diamond contract and the repre-
Sentation of officers, agents and direct
ors and employees of the said associa-
ton, constitute a misuser and abuse OF
ch1ses bestowed upon the said Tontine
Savings association of the state.''
The petition accompanying the infor-
nation recites that the association has
offended against the provisions of the
act creting it; has forfeited its privileges
and franchises by failure to exercise its
powers: that it has not acted as
it ought, and omitted to do acts
which amount to surrender
of its franchises and privileges and fran
chises, and that it is exercising fran
ch;ses and privileges not conferred upor
il by law.
That it has grossly abused and misused
its corporate powers and franchises
That said MISUSE and abuse have been
willful and repeated, and such continued
misuse and abuse threaten substantial
injury to the public and amount to
violation Of the fundamental conditions
CT the contract by which the franchise
to exist as corporation was granted
That the attorney general has reason to
believe that those acts and omissions car
be proved.