Mechanics' & Traders' Savings v. People ex rel. Auditor of Public Accounts

184 Ill. 129
CourtIllinois Supreme Court
DecidedFebruary 19, 1900
StatusPublished
Cited by6 cases

This text of 184 Ill. 129 (Mechanics' & Traders' Savings v. People ex rel. Auditor of Public Accounts) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mechanics' & Traders' Savings v. People ex rel. Auditor of Public Accounts, 184 Ill. 129 (Ill. 1900).

Opinion

Mr. Chief Justice Cartwright

delivered the opinion of the court:

On July 31, 1897, Jacob Ruble and nine others, who are defendants in error, stockholders in the Mechanics’ and Traders’ Savings, Loan and Building Association, one of the plaintiffs in error, filed their bill in the circuit court of Cook county against the said association and its officers, charging mismanagement and fraud on the part of said officers, asking for a discovery and an accounting, and praying that said officers might be removed and restrained from further conducting the business of the association, and that a receiver might be appointed. Shortly afterward, on August 13, 1897, a bill of complaint was filed by the People, also defendants in error, on the relation of the Auditor of Public Accounts, against said association, alleging that its affairs had been deliberately mismanaged and misconducted; that it was delinquent and unable to carry on any business, and that the interests of the shareholders demanded immediate relief and attention and the administration of its property under the direction of the court, and praying for an injunction against continuing business, the appointment of a receiver, the winding up and dissolution of the corporation and the distribution of the property among its shareholders and creditors. These bills were afterward consolidated. Receivers of the association were appointed under the bill of the Auditor. On August 20,1897, Daniel P. Leyden, Henrietta Hallier, Max J. Merchant, John Burns, Ralph Bellizia, Alonzo Bellizia, M. O. Bragdon, Edward Bradley, James E. Eaton and Neill McCoull, stockholders, filed their intervening petition, adopting the allegations made touching the mismanagement of the association, and asking for an injunction restraining the president and secretary, and the family of the secretary, from disposing of property standing in their names but alleged to belong to the association. On November 1, 1897, Katie McCormick, Daniel P. Leyden, Henrietta Hallier, Max J. Merchant, John Burns, Ralph Bellizia, Alonzo Bellizia, M. C. Bragdon, Edward Bradley, James Eaton, Neill McCoull, Harriet B. Greeley and Kate M. Greeley, alleging that they were stockholders of the association, asked the court to be made parties defendant to the consolidated bills, and their motion was granted. On November 8, 1897, Neill McCoull and Katie McCormick answered the consolidated bills and all amendments, admitting the allegations of the bill of the Auditor, except as to whether certain shares were legal, and .admitting the allegations of the bill of Ruble as to the secretary and charges of illegal management of the association. They joined in the prayer of the bill for the appointment of a receiver and the dissolution of the corporation. On November 27, 1897, the association filed answers to the bills of complaint. Its answer to the bill of the People alleged that the amendatory act under which the bill was filed by the Auditor was unconstitutional, and denied that the association was insolvent or that a receiver was required. The answer to the bill of Ruble denied the charges of mismanagement. On December 2, 1897, William E. Rollo and William F. Rollo, creditors of the association, answered the bills, admitting their allegations. Kate E. Greeley and Harriet B. Greeley, stockholders, answered, admitting the allegations of the Auditor and that an injunction should be issued and a receiver appointed and the association wound up and dissolved, and they joined in the prayer of the amended bill. Ralph Bellizia, Alonzo Bellizia, Julius E. Thomas, Henrietta Hallier, Daniel P. Leyden, Max J. Merchant, M. C. Bragdon, Edward Bradley, James E. Eaton and John Burns answered the consolidated bills, admitting the mismanagement and insolvency of the association, but demanded strict proof as to the amount of the insolvency. On December 9, 1897, Katie McCormick, Harriet B. Greeley, Kate E. Greeley, Ralph Bellizia, Alonzo Bellizia, Julius E. Thomas, Henrietta Hallier, Daniel P. Leyden, Max J. Merchant, M. C. Bragdon, Edward Bradley, James E. Eaton and John Burns filed their cross-bill, in beh alf of themselves and all other stockholders who might join therein, against the association and its officers, setting up the charg'es before made against the officers and association, and asking for an injunction against the secretary, and that the association should be declared insolvent and its assets disposed of and the association wound up under a receivership. On the motion of the complainants in the cross-bill the receivership was extended over the property described in the cross-bill. This cross-bill was amended December 15, and still prayed the same relief. There was a supplemental answer of the association, filed December 22, 1897, setting forth that the association had been unable to accomplish either reorganization or liquidation, and submitting the interests of the association to the consideration of the court, with consent that such decree might be entered as to the court might seem proper and right. On said last mentioned day a decree was entered in the consolidated cause, finding that the allegations of the bills of complaint were true. The injunction was made perpetual, and the decree provided that the association should be dissolved and wound up and its assets and property distributed. The court reserved jurisdiction over the bills, cross-bills and petition, for such action thereon as might be proper. To reverse such decree so entered, a writ of error was sued out from this court to the circuit court, in the name of the Mechanics’ and Traders’ Savings, Loan and Building Association of Chicago, Daniel P. Leyden, Ralph Bellizia, Alonzo Bellizia, M. C. Bragdon, Edward Bradley, Katie McCormick, Julius E. Thomas, James E. Eaton and Neill McCouli, impleaded with Ellen J. Gould, administratrix of the estate of Charles J. French, deceased, Henrietta E. Hallier, John Burns, William E. Rollo and William F. Rollo, (co-partners, doing business as William E. Rollo & Son,) Kate E. Greeley, Harriet B. Greeley and Max J. Merchant, against the complainants in the bills.

The errors assigned upon the record, of which this court has jurisdiction and which would authorize suing out the writ to bring the record here from the circuit court for review, are, that the amendments to the Homestead Loan Association act, under which the bill of the Auditor was filed, are unconstitutional and void.

At the last term of this court defendants in error filed thirteen motions to dismiss the writ of error generally or as to particular plaintiffs in error, on the grounds that the prosecution of the writ was never authorized, by such plaintiffs in error; that the charter of the association expired by limitation on July 18, 1898, and the association is extinct, and that plaintiffs in error, who are complainants in the said cross-bill, were estopped thereby to assert the act in question was unconstitutional. These motions were accompanied by a mass of affidavits and a motion for five days’ time to file a printed brief and argument in support thereof. On the same day the association, one of the plaintiffs in error, moved to strike from the files said motion of the defendants in error, and, with other plaintiffs in error, moved for seven days’ time to answer said motion. These motions were followed by four motions of a part of the plaintiffs in error for an order of severance in case the court should conclude that any plaintiffs in error had not authorized the prosecution of the writ, and for summons against the plaintiffs in error as to whom the writ might be dismissed, and leave to amend the writ of error and re-assig'n errors upon the record.

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Bluebook (online)
184 Ill. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mechanics-traders-savings-v-people-ex-rel-auditor-of-public-accounts-ill-1900.