In Re Bank of Leeton v. Major.

6 S.W.2d 646, 222 Mo. App. 897, 1928 Mo. App. LEXIS 103
CourtMissouri Court of Appeals
DecidedMay 21, 1928
StatusPublished
Cited by1 cases

This text of 6 S.W.2d 646 (In Re Bank of Leeton v. Major.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Bank of Leeton v. Major., 6 S.W.2d 646, 222 Mo. App. 897, 1928 Mo. App. LEXIS 103 (Mo. Ct. App. 1928).

Opinion

ARNOLD, J.

— This is an appeal from an order and judgment of the trial court in a hearing on a citation for contempt. No bill of exceptions is presented and the cause is before us on the record proper. From this record it is learned the petitioners for the citation are J. T. Greer and others, stockholders in the Farmers Cooperative Company, theretofore incorporated for time purpose of operating an elevator for storing and handling grain, purchasing supplies, etc., at Leeton, Johnson connty, Missouri. On March 3, 1925, a statutory number of the stockholders of the said corporation *898 by petition sought dissolution at the hands of the circuit court of Johnson county and a decree to that effect was entered in March, 1925.

It appears that at the time of the trial and the subsequent decree of dissolution, the Cooperative Company was indebted to the Bank of Leeton, Leeton, Mo., in the sum of $4701.72, which company at that time had ninety-three stockholders and fifty-one of whom entered their appearance at the hearing and consented to the dissolution. It further appears that at the entry of said, order of dissolution, or soon thereafter, the Farmers Bank of Leeton received the available assets of the corporation and operated to reduce the debts of the company to approximately $1000. On April 25, 1925, the officers of the Cooperative Company wrote all the co-partners and sometime stockholders, advising them of the amounts of their proportionate shares of the debt to the bank remaining unpaid, and requiring each to pay his proportionate share thereof; that á sufficient number responded to further reduce the indebtedness by $262.17.

While the matter thus stood — the exact date not given — the Farmers Bank of Leeton failed and its affairs passed into the hands of E. A. Major, special deputy commissioner of finance of the State of Missouri, for liquidation. It appears that at the June term of the Johnson county circuit court, 1926, an order.- was made directing said special deputy to pay to the depositors of the bank whose claims had been given an ordinary status, a dividend of thirty-three and one-third per cent of the amount of their several claims which were represented by the proceeds of the assets of the bank, including the stockholders,of the Cooperative Company who were depositors. This tlié special deputy refused to do as applied to the Cooperative depositors, but applied the same to the indebtedness of the Cooperative Company to the bank.

On December 27, 1926, there was filed in the office of the clerk of the circuit court a petition for a citation for contempt, as follows:

“Comes now your petitioner and states to the court that this court has ordered a dividend in the above-entitled cause and that E. A. Majors, party in charge of said bank’s affairs, has failed and refused to pay said dividend to those to whom it belongs, in this, that he is deducted from said dividends or refusing to pay until each shareholder in the defunct corporation known as Farmers Cooperative Elevator pay his proportional share of a note held by said bank against said corporation, all of which he has no right to do.

“Your petitioner further states that a part of those complaining about such action are W. D. Swigert, Allen W. Swigert, W. D. Shields and J. T. Greer.

*899 “Your petitioners pray tlie court to cite said E. A. Majors for contempt and require him to show cause why the order of this court has not been complied with and for such other relief as to the court may seem fit and proper.”

The record shows no citation thereon was issued, but upon oral direction of the court that the accused make a showing, there 'was a statement filed on February 14. 1927, by and on behalf of said special deputy commissioner to the effect that prior to April 25, 1925, the Farmers Cooperative Company ivas indebted to the Farmers Bank in the sum of $4701.72; that on March 3, 1925, a petition for dissolution of the Cooperative Company was filed. No notice was served on any of the stockholders and no writs were issued; no notice was issued to any of the creditors of the Cooperative Company and none such entered appearance. That on March 27, 1925, a decree of dissolution was entered dissolving the corporation; that the proceedings relative thereto, by reason of the omissions aforesaid were not effective to accomplish a dissolution, and that as a result of such abortive dissolution the stockholders are, in effect, partners of such organization and liable for its debts. That at the time of said attempted dissolution the Farmers Bank received the available assets of tlie corporation which operated to reduce the debt to the bank to about $1.000. On April 25, 1.925, D. E. Lowry as president and A. B. Roop as secretary wrote the said stockholders, advising them of the amount of the proportionate share of the debt remaining unpaid, and requiring each to pay the same; that prior to the date the bank was closed, $262.17 had been paid, in response thereto, as the prorata shares of different partners; that thereafter respondent Major came into active charge for the liquidation of the bank; that he addressed letters to the remaining stockholders, a large number of whom not having previously paid, responded by payment, so that, as stated, $262.17 of the indebtedness had been paid at the time the hank ceased business; thereupon the deputy commissioner addressed letters to the remaining stockholders and received payments from a large number of them; that on April 26, 1926, the court directed the payment of a dividend of thirty-three and one-third per cent of the deposits and the deputy commissioner applied the principle of set-off against payments distributable to the remaining non-contributing stockholders, and withheld the pro rata share of each from such dividend, which action was acquiesced in hv all distributees entitled to participate except eight. Respondent says:

“That it is unjust, unfair and discriminative that he now be required by order of this court to pay these eight under the conditions, and asks that the court direct that he pay to each of those named his or her full one-third of the amounts found as such deposits less the proper equitable pro rata share of each due said bank, *900 and that when so done, he may be credited with having paid such dividend in full, so that the remaining depositors in said Farmers Bank may not be discriminated against by reason of these having received so unfair an advantage as that claimed by them.”

To this statement there was no reply. The matter was presented to the court and evidence introduced in support of the said answer. Thereupon the court entered of record the following decree:

“Now on this day came J. T. Greer, W. I). Swigert, Allyn Swigert and W. D. Shields upon their petition for citation against Earl A. Major, deputy commissioner of finance, in charge of Farmers Bank of Leet.on for contempt in not paying to petitioners the full amount of dividends allowed to them as depositors in said bank, and comes also Earl A. Major and files his answer to their said petition,

“And the parties respectively announcing' themselves ready for hearing upon said proceeding, the deputy commissioner offers in evidence the judgment roll in the proceedings had in cause No.

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Bluebook (online)
6 S.W.2d 646, 222 Mo. App. 897, 1928 Mo. App. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-bank-of-leeton-v-major-moctapp-1928.