New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-13
CLASS " ST0CKA BIG NAV.
Justice Dugro an FaUor of Appoint
ing Loan Company ReceiUer.

Attorney General cunneen opened his argument
Tor the appointment OF q receiver Tor the New
York Building Loan Banking Company before
Justice Dugro, in the Supreme Court. yesterday
morning. by stating that the questions IN issue
net confined TO the complaint but that the
parties had by consent enlarged the issue. he
continued:
claim the right 70 have receiver appointed appointed
on any Of the grounds specified in the statues.
] also wish to inform the court that hold that
under Section IS of he Banking laws If it appears
tinne business, receiver s1Gn!q oe fpP5ter
l22 Of the Laws of 1851. under which the company
was nsorporatea "1leh y iSsrs exSept from its
earnings We Claim that the company violated
early 1885 found end P9poTte s4s By ot
individual capacity, and as officers sellng II 10
the selfish interests were guarded more zeaIously
than the interests Of the trust -,
When these practices were condemned by the
court II was too good thing to be lost and
s51sl pISteIty O. t-g oeeS 81 his ebi9f ana
thaiik the attorneys Tor the defence for intro
5ucing the Paul Worms contract. which provided
that the company should buy Of Worms, $3.50 ooo
rector OF the Metropolitan Company there might
6e hope ter some fairness B..t when al ne
SIDES Of the deals and transactions is il strange
into this building loan banking company knock in
vain al its DOORS 10 have their money returned
The ofleers OF this company have but trihng
6en Of o oBa5y ad a E b87as Of fhs Glass; gse
stock, which had since been allowed him as
Invested 500 IN pass5ook SHARES Mark S Eu so
81 80 'Ge-pIesi2 erT mas I'VE shares III class 3
" @gock' aa9 sna+ later have something to say
The salaries OF the officers are voted by them
selves as members OF Jht board Of directors.
T T So week: Mark S Eustice -pres-
2 ~. y.
the secretary, sl37 30 q week.
1Ir. Cunneen took up the consideration of Class
Y stock, which. he said. 1t had cost the company
$4,000 10 sell He continued:
Yesterday. when ten or fifteen fellows forgot
-rel ~ 1Ilo 10 eoC me 9ishIiy ana pro
Ill5.g 81 d qLIlIoon 70 applaud the words OF me
aeals Of the State for pressing this action. won
engaged in selling this Glass " stock
e Pro s 81 f the bG g9ne9 & W d t t
eAc!uslon, q other stockholoers and the 81 per
cash not in real estate or equities. No wonder
the officers Of the company were eager to hang on
An investment in Class W stock becomes per
pstaai loan OF money to TINS COMPANY IN cons O.
approPTisted 10 the payment Of 8]s per cent SEMI
When workingman invested dollar in this
company. where did il go? 1t went to pay the dyi,
dend on this Class W stock. For his 81 what did
ne get? Re got an interest n the property that
stockholdeT get: He got the Workingrnan's dollar
defence al the afternoon hearing. Tine nsol-
vency OF this company is not only proved, but fl
Is sfnrmarvely dsproVed." he said. The Attorney
General made the statement that there is nothing
70 show for the dollar NJ the workingman. You
have before you the schedule of the referee. in
which set down 500 mortgages which the referee
has to!a you are worth dollar for dollar"
The worms contract. he said had been entered
into long before Worms became officer Of the
company
why haven't the taxes been paid unless it is be-
cause you are short Of fupds?' asked the court
1t appears that many taxes were not paid in 1901
If your honor wants an explanation OF why the
taxes were not paid in each individual case viii
be glad 70 furnish it," replied counsel
I don't quite see how this company could be
hurt by the appointment Of Temporary receiver"
said tire court .bec2 its property IS such not
70 be hurt by IT. The appointment Of q receiver
carries with Il this decided advantage-the af
fairs Of the company could be satisfactorily known
70 the court II one were appointed he would be
able 10 put himself in position to inform the
court regarding the colnpanys affairs az the trial
Colonel Robinson asked that the defence have
twenty-four hours TO present written statement
Of TIE reasons why the appointment Of q receiver
would be injurious to the company.
you may also submit brief on the Class W
stock. if you 10. for regarding II my opinion
S At present against you the court replied.
The defence has until Saturday TO file its briefs