International Bldg. & Loan Ass'n v. Abbott

• Decision Date: 10 June 1892
• Citation: 20 S.W. 118
• Parties: INTERNATIONAL BLDG. & LOAN ASS'N <I>et al.</I> v. ABBOTT <I>et al.</I>
• Court: Texas Supreme Court

20 S.W. 118

INTERNATIONAL BLDG. & LOAN ASS'N et al. v. ABBOTT et al.

Supreme Court of Texas.

June 10, 1892.

Appeal from district court, Bexar county; W. W. KING, Judge.

Bill by Thomas H. Abbott and others against the International Building & Loan Association and others for an injunction. Complainants obtained a decree. Defendants appeal. Reversed.

Wm. Aubrey and B. L. Aycock, for appellants. Upson & Bergstrom, for appellees.

HENRY, J.

This cause was tried by the judge without a jury, and the following conclusions of law and fact were filed: "In the above styled and numbered cause I find the following as my conclusions of facts: (1) That on April 12, 1886, the plaintiff Thomas H. Abbott applied to the defendant for a loan of $1,140; that the said loan was granted on condition that the said plaintiff would become a subscriber to and purchaser of 13 shares of the capital stock in defendant's company, and that he should pay on said stock the sum of one dollar per share per month; and that when said shares, — that is to say, the amount paid in thereon, — together with the dividend or profit earned by said stock, should become of the actual cash value of $2,600, that then the said stock should be delivered up to the defendant, and canceled, in consideration whereof the said loan of $1,440 should also be canceled; and should pay, in addition thereto, interest on said sum of $2,600 at the rate of six per cent. per annum, and to secure said loan should execute a deed of trust upon the property in controversy. (2) That at the time of making said loan plaintiff held in defendant's association five shares of the first series of said capital stock, and at the time of making said loan subscribed for two additional shares in the first series, and six shares in the fifth series, of said capital stock, making a total of 13 shares, of the par value of $200 each, and received from defendant the sum of $1,440, and executed the note and deed of trust as set out in plaintiff's petition and defendants' answer, to wit: `$2,600. San Antonio, Texas, April 12th, 1886. On or before the maturity of the first and fifth series of the stock of the International Building & Loan Association, we, or either of us, promise to pay to the order of said Building & Loan Association, at its principal office in San Antonio, Texas, the sum of $2,600, with interest at the rate of six per cent. per annum from the date thereof until paid; also the further sum of $26 per month from this date until the maturity of the aforesaid stock, as provided for in the by-laws of said association, which by-laws are made and taken to be a part of this note.' That defendant's by-laws provided that whenever it shall appear upon the books of the association that the stock of any particular series is worth $200 per share, all arrears for monthly dues, fines, and otherwise shall become at once due, and the directors shall cause to be paid to the holder of each share in such series the sum of $200, less all arrears of fines, dues, or otherwise, and payment of dues on the stock of the said series shall cease thereafter; and the directors shall cause to be delivered to each borrower in such series, who has complied with the conditions of his loan, a deed of release, and shall cancel and deliver up such loan, and thereupon the stock of such series shall be canceled; also that each and every stockholder of each and every share of stock held by him shall pay into the treasury in lawful money one dollar per month on each share until such shares of the series of stock upon which such monthly payments are paid shall reach the value of $200, when the holder of such share shall be paid for each share of such stock the sum of $200, and thereupon such share of stock shall revert to the corporation, and be canceled. (3) That thereafter plaintiff paid the defendant as interest on said sum of $2,600, at six per cent. per annum, the sum of $715, and had paid in as monthly dues on said shares of stock the sum of $923. (4) The said loan and the provisions...