"Before
plaintiffs could borrow from defendant corporation the said
plaintiffs, T. E. Wilson and A. D. Bazore, were compelled to
become, and did become, stockholders in defendant's
company. And defendants say that said plaintiffs, on the
first day of September, 1894, subscribed for fifty shares of
stock of said company, with a view of borrowing from said
company, and as a part of said transaction of said loan.
Defendants say that twenty-five shares of stock were taken,
upon which to borrow the sum of $ 2,500, as required by the
by-laws of said company, and the other twenty-five shares
were taken by said defendants as investment stock. Defendants
say that, by the terms of said subscription and by-laws of
said company, the plaintiffs agreed and promised to pay, and
to become obligated to pay, as monthly dues on said stock, on
the 4th Saturday of every month, for a period of sixty
months, the sum of $ 50, being $ 1.00 per month for each
share. Defendants further say that, having so subscribed for
said stock, the said plaintiffs filed with the board of
directors of said corporation, at Springfield, Mo., their
written application for the loan of $ 2,500, payable sixty
months after date. That said application for a loan was acted
upon, approved and accepted by the said defendant company at
Springfield, Mo., by and through a vote of its board of
directors. That thereupon the said plaintiffs delivered to
the defendant corporation at Springfield, Mo., the promissory
note in said petition described, and delivered to defendant
corporation and C. E. Boyden, at Springfield, Mo., the deed
of trust in said petition described, and said note and said
deed of trust were by said corporation and trustee accepted
and received at Springfield, Mo. And defendants say that the
said sum of $ 2,500 was by said corporation paid to said
plaintiffs at Springfield, Mo., and the same was by them
there and then accepted and received.
"Further
answering, the defendant says that, by the terms of said
contract, note and deed of trust, the said principal sum was
due and payable sixty months after date, and the said
plaintiffs had obligated themselves to pay $ 50 each month
upon said stock, and had agreed to pay interest on said sum
at the rate of 6 per cent. per annum, payable monthly; that
is to say, promised and agreed to pay as interest the sum of
$ 12.50 per month for sixty consecutive months, and also
promised and agreed to pay defendant the sum of $ 25 per
month as a premium for said loan for a period of sixty
consecutive months. Defendants say that no part of said
principal sum was due and payable, except at the option of
the plaintiff, until the expiration of the sixty months, when
at said period the value of said shares of stock are applied
as a lump payment upon said debt, and the money so paid by
the plaintiff as dues, interest and premium were used by
defendant corporation, and used to enhance the value of the
plaintiff's stock. Defendant further says that for the
months of September, October, November and December, in 1894,
the months of January, February, March and April, in 1895,
plaintiffs paid as dues on said fifty shares of stock the sum
of $ 50 each month, and during the same period paid the sum
of $ 100 as premium on said loan, and on July 10th, 1895,
executed and delivered their certain notes for the payment of
$ 100 dues, $ 25 interest, $ 50 premium and $ 5 fines, or a
total of $ 180. Defendants say that on said July 10th,
plaintiffs withdrew 25 shares of their stock from their
company, and the withdrawal value of said shares at said time
was applied, by the direction of plaintiffs, as follows: (1)
The payment of said note for $ 180, being the dues, interest
and premium for the months of May and June, 1895, and the $ 5
fines, aforesaid. (2) To the payment of the dues for the
month of July, 1895, on the said remaining twenty-five
shares, and six other shares not included in said loan;
total, $ 31. (3) To the payment of interest for the month of
July on said loan of $ 2,500, and to an additional loan of $
600, $ 15.51, and the balance of said withdrawal, together
with cash payment of $ 11, was applied to the payment of the
July premium on the said $ 2,500 loan and on the said $ 600
loan. Defendants further say that for the months of August,
September, October, November, and December, 1895 and January,
1896, said plaintiffs paid monthly dues on said stock of $ 25
each, and no more. During the same period said plaintiffs
paid the monthly sums of $ 12.50, as interest on said loan,
and no more, and during the same period plaintiffs paid the
sum of $ 25 per month premium on said note, and no
more,--making a total payment on dues, interest and premium
on said twenty-five shares of stock, and the said loan of $
2,500, the sum of $ 912.50. That, at the time of the
institution of this suit, there was payable, but not then
due, on said note and said deed of trust the sum of $ 2,500,
and there was due and payable and unpaid the sum of $ 50 for
dues on said stock for the months of February and March,
1896, and there was at the said time due and payable and
unpaid on interest the sum of $ 25 for said two months, and
there was due and payable and unpaid at said time the sum of
$ 50 as premium for said two months, making a total of $ 125,
exclusive of fines. And the defendants say that, exclusive of
fines, there is now due the defendant corporation by
plaintiff the following sums: $ 2,500 principal debt, payable
but not due and the sum of $ 150 as dues on the said
twenty-five shares of stock, $ 150 as premiums on said loan,
and $ 75 as interest on said loan. Defendants say that, among
other provisions of said deed of trust, it is provided that
if default is made in the payment of said note, or any part
of it, or any of the interest thereon, when due, or any of
the dues as stockholders, when due according to the by-laws
of the said party of the third part, then this shall remain
in force, and the whole of said indebtedness become due and
payable according to the by-laws of the party of the third
part. Defendants say that plaintiffs have violated conditions
of said deed of trust, and plaintiffs are now in default for
6 months past. Defendants state that should the present value
of said shares of stock be applied on said principal debt,
there would still be due and payable to the defendant
corporation the sum of $ 2,400. Defendants further state
that, after the execution of said note and deed of trust, the
defendant T. E. Wilson purchased the interest of said Bazore
in said property, and, as the sole consideration of said
conveyance, assumed and agreed to pay said $ 2,500 as due
defendant corporation, and promised and agreed to pay dues,
interest and premium on said stock and loan. Therefore,
filing this as an answer as well as cross-bill, defendants
pray judgment for $ 2,875, with interest, and that the equity
of redemption be foreclosed, and said property be sold to pay
said debt, interest and premium, with privilege accorded said
defendant Wilson before sale to repay said debt by applying
the value of his stock thereon, and paying the balance in
cash, and for such further relief as this court may see meet
and proper, and for this your defendant will ever pray."
