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“6th. That all receipts from fines shall be paid into the redemption fund,

wyth. That the contributions to the reserve and redemption SIIT?ID, funds may be loaned to the holders of certificates issued by this Company, upon terms and security to be accepted by the Board of Directors; provided that not more than one hundred dollars can be loaned on account of any one certificate, and no loan can be made for a longer time than five years.

846 “8th, That after the reserve fund shall have reached the sum of one hundred thousand dollars, the interest earnings therefrom may, at the option of the Board of Directors, of this Company, be applied to the redemption of certificates then in force issued by this Company. And when the reserve fund shall have reached the sum of two hundred thousand dollars, then fifty per cent., or any other portion of all the further current contributions thereto, may be applied to the redemption of certificates in force in like manner with the interest thereon, when the Board of Directors shall so authorize.

“9th. That no transfer of this certificate shall be valid or binding on the maker hereof until such transfer has been made in writing thereon, and the same duly recorded on the books of the Company at its home office; and for each transfer a fee of One Dollar must be made before a transfer will be made.

10th. That each and every transferee of this certificate accepts it subject to all the stipulations herein.

"11th. That no statement made by anyone except as herein set forth shall be binding on this Company.

"12th. That no part of the Reserve, Redemption, or other fund shall ever be loaned to any Officer or Director of this Company.

“13th. That no part of the Reserve or Redemption fund shall be loaned, except (A) upon improved real estate within the incorporate limits of the city in which it is located, and then not in excess of 50 per cent. of its cash market value; (B) Upon Government, State, County, or City Bonds that have never defaulted the payment of interest; and this provision can never be changed except by the consent of every holder of live Certificates issued by this Company in Class “A.”

In Witness Whereof, this Company has caused this Certificate to be executed in its name and behalf, under its corporate seal, by its President and Secretary.” (Dated and signed.)

The following appears upon the back of the certificate:

1

647 TABLE REFERRED TO IN THE BODY OF THIS CERTIFI.

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2nd Multiple Col.

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279 then

280 then 297 then 306 then 315 then 324 then 333 then

342 then 351 then 360 then 369 then 378 then 387 then 396 then 405 then 414 then

423 then 432 then 441 then 450 then 459 then 468

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2nd Multiple Col.

No. then 477 then 486 then 495 then 504 then 513 then 522 then 531 then 540 then 549 then

558 then 567 then 576 then

585 then 594 then 603 then 612 then 621 then 630 then 639 then 648 then 657 then 666 then 675 then 684 then 698 then 702 then 711 then 720 then 729 then 738 then 747 then 756 then 765 then 774 then 783 then 792 then 801 #hen 810 then 819 then 828 then 837 then 846 then 855 then 864 then 873 then 882 then 891 then 900

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A large number of these Class “A” certificates were issued. The assistant attorney general of the United States for the postoffice department having given an opinion that the scheme indicated in these certificates was a lottery, by an order of the postmaster general the mails were closed against the company,

and, under the usual rules of the department in such cases, all letters addressed to the company were stamped as fraudulent and returned to the writer. An appeal was made to the department to reverse this ruling, but the department adhered to the same, and the postmaster general refused to rescind the order closing the mails to the company. There were, at the time the present case was instituted, only seventy of these certificates outstanding, and the holder of only one of them 649 is a party to the present proceeding. It is not necessary to determine whether the scheme indicated in this class of certificates was legal

. From the evidence it appears that the officers of the company, so far as they were able to do so, protected the holders of these certificates, notwithstanding their condemnation by the postoffice department, and that all the holders, except the number above referred to have been settled with upon terms which here, so far as the present record discloses, entirely satisfactory to the holders, and that the company has in hand a fund derived entirely from receipts and investments from this class of certificates, which can and will be used, as far as practicable, in settlement with the holders of these certificates. The evidence further shows that the funds derived from this source have never been mingled with other funds of the company, nor have other funds been used in any way in the settlement or discharge of certificates of this class. We will, therefore, not pass upon the legality of the scheme indicated in this class of certificates, and will eliminate from the discussion anything in reference to this class of certificates, except so far as their history may throw light upon the legality of the schemes indicated in certificates subsequently issued. The judge did not appoint a receiver on account of the illegality of these certificates. The reason he gave for the appointment was that he thought subsequently issued certificates were illegal. If the receiver had been appointed solely on account of Class “A” certificates, the order of appointment should and would have been limited in its operation to the fund in the treasury of the company, which was set apart for the payment of these certificates. Whether there should be a receiver appointed for this fund alone has not been passed upon by the judge, and will not now be passed upon by us. Upon the refusal of the postmaster general to rescind the order closing the mails against it, the company promptly ceased to issue certificates of the class above referred to, and did all that was possible to do under the circumstances to protect those who had in good faith bought the certificates. The com

pany then issued certificates known as “Class 'B,'” a form of which is as follows:

“The Equitable Loan and Security Company of Atlanta, Georgia, hereby promises to pay to the order of of

-, at its home office in Atlanta, Ga., FIVE HUNDRED DolLARS, subject to the following express terms and conditions:

650 “1st. That the holder has paid four dollars herefor, and agrees to pay to the maker hereof at its home office, without any other or further notice, an installment of one dollar and twentyfive cents on the fifth day of each and every succeeding month hereafter, until one hundred and sixty-eight installments shall have been thus paid, time being of the essence of this contract, then this certificate shall become due and payable for its full face value.

“2nd. That the holder hereof shall surrender for payment and cancellation this certificate whenever the same shall be called, before maturity, upon the payment to him of its then redemption value, which value shall be the full amount of the first payment, and all installments paid hereon, with interest on said amount at the rate of eight per cent. per annum, and its proportionate share of all dividends or accumulations from fines, lapses, and interest earned in excess of eight per cent per an

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“3rd. That, in order to prevent favoritism or partiality being shown by the company, certificates paid before maturity shall be paid by numbers, and only according to the multiple table which is printed on the back hereof, which table is hereby referred to and made a part of this contract.

“4th. That of each and every installment paid as aforesaid the maker hereof shall place fifty per cent, and all net receipts from fines to a redemption fund, which may used: (a) For paying off certificates prior to their full maturity term, according to the terms above set forth. (b) For paying certificates in the order and manner that they shall mature at the end of the full term. (c) For paying to the legal representatives of any deceased holder hereof the full amount of the first payment, and all installments paid hereon, with interest at the rate of eight per cent. per annum, and its proportionate share of all dividends or accumulations from fines, lapses, and interest earned in excess of eight per cent per annum; provided, this certificate is in good standing, and legal and sufficient notice of such death is furnished the maker hereof within sixty days after death occurs, or fines will be enforced as provided for in

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