The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-04
letiOn Begun in Name of
Guaranty Stockholders.
Ask Injunction Against Officers
Of Company.
STOP PAY SERIES STOCK
DON'T Want Guaranty Money
Taken to Nature 1t.
Great Secrecy Observed in Fill
ing the Case.

On the 2sd Of July a case was filed
with the clerk of the district court, ~.
r. Hogsett representing the holders Of
the guarantee stock of the Aetna Build
ing and Loan company against the
Aetna Building and Loan association.
The case like many others which are
filed IN the district clerks Office was
given a half number, no record Of it
seas made and the case was taken out
OF the office by one of the attorneys in
the case, c. J. Evans, and has been in
his ONCE since that time.
There is a possibility that the case is
not one of great Importance to the pub
lie nor Of interest excepting to those
directly concerned. yet on the other
hand the secrecy with which it has
been handled would indicate that there
IS something more than the face OF the
matter indicates. The practice that has
been prevalent of late in permitting
cases 10 De filed by attorneys in the
district clerks office under half num-
hers and then taking the papers out Of
the office leaving no trace whatever of
them is one that is directly contrary to
the letter of the law if it is not a di-
rect violation and gives the cases so
handled anything but a good standing
in the eyes of the public who are sup
posed to have access to matter handled
through the offices Of those elected as
public officials.
This suit is brought by one Of the
holders Of the guaranteed stock" in the
Aetna association to prevent the Off
GERS Of the company from taking money
from the guarantee fund and maturing
the series stock At the time of the for
nation Of the company two different
classes Of stock were arranged for The
first or serial stock to be paid from
the guarantee fund at the time Of ma
turity and the second or guarantee
stock which was more of a speculative
feature which offered the posi- bilities
of enormous returns in case of the sue
cess Of the company and comparative
light returns in case that the affairs
turned out less successful than the
company anticipated.
Since the company was formed the
legislature of 1899 passed stringent laws
governing the building and loan assoeia-
lions of the state and curtailing their
earning powers to such an extent that
the guarantee stock of the company has
become much less valuable as an asset
than it was prior to the passage of the
law.
The claim is now made by W R.
HOgsett. the plaintiff in the case that
the guarantee fund is not large enough
to pay the series stock and leave any
stock since the fund has been deprived
of moneys which formerly came into the
fund for lapses, fines, etc
Mr.. Hogsett who is said to be repre-
genting the guarantee stockholders asks
the court TO make a ruling requiring the
company to place the series stock and
the guarantee stock on the same basis
neither to have the preference, regard
less Of the contracts Of the company.
On the other hand the serial stock
holders Of the company claim that the
suit has been inspired by the officers OF
the company in thu hopes of heading off
similar litigation with which they have
been threatened by holders of the stock
who are scattered over the state.