The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1907-04-16
Receiver Asked For.

Forced by the action of hundreds of its
shareholders directors of the State Mu-
tual Building and Loan Association of
New Jersey announced yesterday morn
ing that an annual meeting of the associa-
lion would be held April 25, at which the
"a, 900 shareholders will be asked to vote
on resolution to dissolve the association
and liquidate its business.
This action was taken in accordance
with resolution adopted by the Board of
Directors at a special meeting held April
IL, at which the directors unanimously
were of the opinion that it is advisable for
the interest of the shareholders that the
business be wound up and the Association
dissolved. A copy of this resolution, to-
gether with statements of the associations
standing, have been sent to the stock
holders
Following this announcement, Theo-
dore Backes, who is connected with the
office of the Attorney General of New
Jersey, appeared before Vice Chancellor
Leaning in Camden yesterday and asked
for rule to show cause why a receiver
should not be appointed for the associa-
tion He was informed that Leaning had
two similar applications from shareholders
which he did not entertain, deeming it in
advisable to do so because of their being
shareholders. The Vice Chancellor asked
the Attorney General if an examination of
the associations accounts showed the ne
cessity for receiver and in reply he was
told that the Withdrawals filed every day
with the Department of Banking at Tren-
ton were $500 in excess of receipts for the
same period, and that the claims are con-
stantly piling up, showing the necessity
Tor the association to go into the hands of
a receiver.
Chancellor Leaning said he under
stood that meeting had been called for
April 20 for the purpose of winding up
the affairs of the association, and, there
fore, he would grant the rule making it
returnable April 80.
The association was organized in 1892.
and during the first three years Of it's
existence it was very successful, its gross
assets at one time being SO, 500, 900, with
a total of 1900 shares outstanding.
During the past several years the with
drawals have been very heavy, exceeding |
greatly the receipts, and the maturity Of |
shares was but few thousands less than |
four millions. At this time the assets of |
the association are 81, 200,O principally |
in realty and mortgages, which means |
should the association go into liquidation, |
the tieing up OF this money to await settle |
ment which must be pro rata among the |
q, 900 shareholders.
1t has been an established fact that the
association has been losing business since
early in 1906. There were but few new
members joining, and this, together with
many Withdrawals and the maturity of a
large number of shares, made inroads on
the finances of the association.
On April 4 one stockholder of the as
ISOLATION, whose name is not known, who
had given notice for withdrawal of his
money, after waiting an unusual length
OF time, filed application in the Court of
Chancery, asking that receiver be ap-
pointed for the association. The action of
this shareholder was widely published
As result the Withdrawals increasysl
greatly and the payments of premiums
fell off to such an extent that the directors
became alarmed and decided upon the
meeting held April II, which was followed
by the announcement of the contemplated
action to dissolve the association.
Ii the shareholders decide to dissolve
and liquidate the finances under the law
they can select three or more members to
act as trustees who can proceed to wind
up the affairs of the association. This is
why Vice Chancellor Leaning made his
rule returnable April 80, so that the share
holders can decide for themselves what
they think best for them.
There are quite number of shareholders
in Mount Holly and vicinity
The present officers of the association
are: President, E. Amber Armstrong, for
merly member of the Judiciary and at
present member of the State Board for
the Equalization of Taxes; vice president,
J. Willard Morgan, State Comptroller and
formerly a United States Commissioner:
treasurer, Rev. Frederick R. Brace, who
frequently acts as moderator of the New
Jersey Presbytery, and secretary, E. Ken
nedy Reeves