State ex rel. Ballew v. Woodson

61 S.W. 252, 161 Mo. 444, 1901 Mo. LEXIS 124
CourtSupreme Court of Missouri
DecidedMarch 26, 1901
StatusPublished
Cited by18 cases

This text of 61 S.W. 252 (State ex rel. Ballew v. Woodson) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Ballew v. Woodson, 61 S.W. 252, 161 Mo. 444, 1901 Mo. LEXIS 124 (Mo. 1901).

Opinion

VALLIANT, J.

This writ of certiorari, which issued at the instance of certain stockholders of the Phoenix Loan Association, brings up the record of the Buchanan Circuit Court in the case of State ex rel. Gray v. Phoenix Loan Ass’n, 159 Mo. 102, from which record it appears that it is a suit instituted by the Supervisor of Building and Loan Associations, in his official character, under section 1892, Revised Statutes 1899, looking to the dissolution of the Phoenix Loan Association and the winding up of its affairs.

The suit was begun by the filing of the petition in the circuit clerk’s office during the vacation of that court, on July 15, 1899. At the same time the answer of the defendant corporation was filed, and on the same day the petition and answer were presented to a judge of that court in chambers, who thereupon made and signed an order in the words following to-wit:

“In the Circuit Court of Missouri, within and for Buchanan County. In Vacation. State of Missouri ex rel. Henry L. Gray, Supervisor of Building & Loan Associations, Relator, v. Phoenix Loan Association of St. Joseph, Missouri, Respondent.
“Whereas, Henry L. Gray, Supervisor of Building and Loan Associations of the State of Missouri, has this day filed his petition in the circuit court of Buchanan county, in division number 1, in vacation, against the Phoenix Loan Association, of St. Joseph, Missouri, stating that he is the Supervisor of Building and Loan Associations of said State of Missouri, and that respondent is a building and loan association organized and existing under the laws of the State of Missouri, and further states that he has made an examination of the affairs [447]*447of said association, and finds that it is no longer able to carry out the object and purposes of its organization, and that by its continuance in business would work injuriously to the stockholders and others interested in said association, and the same having been taken up and considered by the undersigned judge of said court, who finds from the petition and the answer filed herein that the allegations of said petition are true, it is therefore ordered that said building and loan association be dissolved, and the officers, agents, and employees of said association are hereby enjoined from further conducting the business of said association, and from in any manner interfering with its business and its property and effects, and that the court hereby appoints Graham G. Lacy and Harry M. Tootle as receivers to take charge of the property and assets, and to wind up the affairs of said association according to law, and as this court may from time to time order. And it is further ordered that each of said receivers execute a bond or bonds to the State of Missouri, each to aggregate the sum of fifty thousand dollars, to be approved by the judge of this court, before they enter upon the discharge of the duties of their office. And it is further ordered that the said receivers select their own bank in which to deposit the funds of said association as they are collected by them, and said bank is ordered to execute bond to the said State of Missouri in the sum of one hundred thousand dollars, to be approved by the judge of this court, to the use and benefit of all parties interested in assets of said association, for the faithful keeping and accounting of such money and funds as may he deposited in said bank by said receivers from time to time; and said bank is ordered to notify the judge of this court of the daily deposit made in said bank by said receivers. And it is further ordered that the receivers make a complete and accurate inventory of all the assets of said association at the earliest possible time, and G. P. Kincade and [448]*448E. A. H. Garlichs are appointed appraisers to appraise the-assets of said association; and the court hereby declares all loans owing said association, however evidenced, to be, and they are now, due and payable. It is further ordered that the board of directors of said association forthwith make an order directing the president and secretary of said association to execute proper deeds and conveyances conveying to the receivers herein named all the property, real, personal, and mixed, belonging to said association, and not located in the State of Missouri; and said president and secretary are hereby ordered to-forthwith execute said instruments conveying said property to said receivers, and said receivers are hereby ordered to proceed to wind up the affairs of said association as speedily as is consistent with the best interest of the creditors and shareholders of said association. It is further ordered that the receivers hereby appointed employ R. A. Brown as their attorney and counsellor in all matters connected with the management and winding up of the affairs of said association; the compensation of said attorney to be approved by this court. It is further ordered that the receivers employ such clerical assistance as may be necessary in the protection, collection, and preservation of the assets of said association; the compensation of said clerical assistance to be approved by this court.
“A. M. Woodson, Judge. July 15, 1899.”

The receivers so appointed gave their bonds, respectively, as the order required, on July 17 and 19. On August 5 the receivers filed a petition in which they requested instructions in relation to determining the amount due on certain mortgages. On August 30 the receivers and appraisers filed an inventory and appraisement showing assets valued at $434,726.81.

On September 2, A. 1. Crawford and fourteen others filed their petition showing that they were stockholders in the corporation and asking to be made parties to the suit. The peti[449]*449tion is elaborate in its statements, averring mismanagement on the part of the officers of tbe corporation, and that tbe suit was brought, not in the interest of the stockholders, but by collusion between the relator and the guilty officers, to aid them in covering up their misdeeds, and enable them to profit in the fees and salaries incident to the winding up of the affairs of the corporation. Special objection was urged against one of the receivers, and his removal was asked.- This petition was presented to the judge who had made the order of July 15, and thereupon he ordered the petitioners to be made parties defendants, modified the order of July 15 so as to authorize the receivers to make their own selection of an attorney, and denied the prayer for the removal of the receiver against whom the special objections had been urged. All of the above-mentioned proceedings were in vacation, before the judge in chambers,

At the September term, 1899, and at subsequent terms, the court, treating the order of July 15, above set out, as the final decree in the case, proceeded to make orders in the way of directions to the receivers to guide them in the administration of the affairs of the supposed defunct corporation, and other orders of an administrative character. A brief summary of the proceeding is as follows: On September 21 the court responded to the petition of the receivers filed August 5, above mentioned, and instructed them upon what basis they should settle with borrowing stockholders. On September 23 a referee was appointed to adjust claims against the concern, and directions given for his conduct. On September 25 one of the receivers resigned, and another was appointed in his place. October 3 directions were given the receivers in regard to receiving payments, and authorizing them to release mortgages.

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Cite This Page — Counsel Stack

Bluebook (online)
61 S.W. 252, 161 Mo. 444, 1901 Mo. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-ballew-v-woodson-mo-1901.