Religion: Defaulting Methodists (Cont'd)

Well pleased with himself last week was William Coleman Bitting Jr., energetic head of the St. Louis security house of Bitting & Co., specialist in church bond issues. Two summers ago, acting for his bondholders, Mr. Bitting set about trying to recover as much as possible of some $3,000,000 in issues floated for and defaulted by the house's most vexatious clients, organizations of the Methodist Episcopal Church (TIME, July 30, 1934). Year ago one of these issues was up for argument in U. S. District Court in Portland, Ore. After adjourning one day, Judge James Alger Fee, as a layman, remarked:

"No one having heard the testimony on both sides can doubt that if there is not a legal obligation on the part of the Church, there is a high moral obligation. ... It is true that repudiation of debts, and bankruptcy, in this day, is looked upon with favor by individuals, corporations, and even Governments, but for such repudiation, in a case of this kind, to come from men preaching the Religion of God, is not understandable. The position held by the Church in the minds and hearts of men would be greatly shaken, no matter which way this case may be decided. If the case is won by the plaintiffs, the Methodist Episcopal Church will be branded as having tried, without success, to get out of a just obligation. . . . On the other hand, if it should be found necessary to decide this case in favor of the defense, the Church would be relieved of a great financial burden, it is true, but it would be charged, in popular opinion, with having avoided, through technical means, legal liability for what was an undoubted moral duty, and it would darken the way of the Church forever. . . ." Last week Judge Fee handed down his decision, found the Oregon Conference of the Methodist Church liable for $92,000 principal and interest on bonds issued for the Wesleyan Hospital at Marshfield. Ore. Thus in the first Bitting case to be tried, the Methodist Episcopal Church was branded with "having tried, without success, to get out of a just obligation."