The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-05-19
UNLAWFUL
IN KANSAS
Receiver Appointed for Ma
tionaI Home Building Co.
NO RIGHT TO OPERATE
Attorney General Files Suit
Against Company

Kos Harris was yesterday appointed re-
company whose main offices are in this
city in compliance with petition filed
in the district court by Attorney General
Coleman and County Attorney Eckstein.
The receiver Immediately procured the
necessary bond of $1,000 and took charge
of the affairs of the company yesterday
morning. Besides appointing a receiver
| the court issued d restraining order which
! prevents the corporation or any of its
officers from removing any of the assets
OF the firm from the jurisdiction of the
| court or from exercising any Of its cor
porate rights within the state from draw
ing on the deposits in the banks,
whether in the name of the company or
any of its officers or from collecting any
money from its patrons.
The petition states that the chief Off
GERS OF the company are ]. f. Ligget,
president; L. Ligget, a brother of the
president. and Blanche Liggett, a daugh-
ter of the president, and that the Ma
l.onal Home Building company is a cor
poration existing under the laws of Okla
homa. 1t further states that while IL was
organized and incorporated as a benevo-
lent institution it is not engaged in benev-
olent enterprise and that ever since it's
orga niZation has been engaged in bust
ness for pecuniary gain to the officers.
Following is the plan of the company S
operations given in the petition:
Contracts are issCed numbered in order
beginning win amber / and the com
pany afrees after a certain amount has
been paid by its patron to furnish him
with $1,000 with which to build a home,
allowing him to return the money at the
rate of s. per month without interest.
Another offer stated in the petition is for
the company TO loan to its patrons $50 per
month each to enable them to build a
home. agreeing that the contracts shall
be matured in order beginning with num-
Der l. The company agrees that if the
contracts are not matured in a certain
number of months after they are made II
will return to the holder all the money he
has paid with 10 per cent added. The Pc
tition also states that contrary 10 the
Their states that the contracts are no ma
provide for he payment Of 81 per week
on each contract by the holder, but il
he fails on any one week IS assessment
all the money he has paid en- the contract
reverts TO the company. The petition fur
Their states that the contracts are not ma
ured in the order in which they were is
sued and If they were it would take many
years 70 mature them and in allowingg
the patrons TO repay the loans without
interest the expenses of the company
would use up all the payments made and
nothing would remain for the holders of
later contracts
The petition further states that the
company has made no deposit with the
bank commissioners of the state of Kan
sas. that il has no certificate from the
bank commissioner and that because of
its Noncompliance with the laws of the
state il has been refused a certificate by
the secretary OF the board 1t also states
that the corporation has no right what
ever to operate under the laws Of the
state of Kansas and that the company
with the fraudulent purpose of deceiving
the people. obtained "a charter under the
laws of Oklahoma as a benevolent insti-
tuition and has no authority 10 engage in
the business as a building and loan asso-
citation.
The petition further states that over
1000 of the above described contracts
have been issued to persons in different
parts OF this state and that a great many
are issued TO persons who are not able
financially to litigate and protect their
rights, and that the creditors who are
able financially to protect themselves by
attaching the assets of the corporation
could obtain preferences to the loss OF
other creditors. Therefore the appoint
ment of a receiver was asked for in order
to keep the assets Of the company intact
and enable the creditors 10 procure an
equitable pro rata division
Ane list of directors as given in call
for the meeting attached to the petition
are: ]. Z. Liggett, Wichita; L. b. Lig-
gett. Wichita: w. ]. Stevens. Medford, o.
T; ]. A Clark. Wichita; W. K. Foster.
Oklahoma City; George w. Robb, Wich-
ita, and ]. c. Roberts. Kingfisher, Ok
lahOma.