The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-02-26


month, which is the only salary paid.
amounting to Sl.S00 in two years, and yet
there has been disburSed salaries accord
ing to the report of $3.50 rs.
1.-THE statement for October l, 1891 says
that no agents are employed and yet
there is charge of fees to agents,
s., S46 l5.' Attorneys fees and appraisers
fees are charged with 81 1910 "a, and it is
generally supposed that these expenses
are paid by the borrowers. There has
been collected in interest 81 $50 Oh, and
paid out for interest S2.24I 81, showing
loss In this account of sol so; whereas, in
terest Is generally supposed to be one Of
the main sources of income.
Prom the figures presented it is appar-
ent that whatever the methods may be
now those previous to July l. 1891, have
been simply the collection of dues from
unsuspecting investors and absorbing the
same in expense of management"
RENTERS COOPERATIVE INVESTMENT
COMPANY.
incorporated in San Francisco No
vember ., 1890. This company shows
only a total business Of S9,365 Sc and is,
therefore, very conservative, or has not
endeavored to compete with more active
associations. This company has two
funds, viz: The operative fund and the
Investment fund, and the latter shall at
all times be subject to inspection, whereas
the former is private. From the state
ment it appears that $3.50 so has been
taken from the investment fund for the
expenses of operating. Ne
figures of the operating fund are given
out, but it is possible, or rather probable,
that the operating fund OF this company
IS getting what the expense fund in other
companies (Nationalsl gets, viz: All the
cream Of the business"
FIDELITY SAVINGS AND LOAN ASSOCIA-
TON.
This association was incorporated in
Los Angeles January % 1891, and conse-
quently had but five months business to
exhibit. The financial statement is
given, after which the report goes on to
say that lit is fair to assume that the eX-
traordinary expenses which have been
incurred were incidental to the inaugu-
rating of the business. Theamount paid to
| agents (Sl,02l S0) is excessive.
Whatever may become Of the rest of
the business, the expense fund is well
provided for, and as usual the better part
Of the business. The bylaws provide
that only holders Of unpledged shares
shall be allowed to vote, thus depriYing
all borrowing members usually the ma
| jority-from any voice in the manage
ment OF the association"
NATIONAL BUILDING AND LOAN Asso-
CITATION.
The report of this Los Angeles associa-
ton for the six months ending December
81, 1891, shows that during that period
Sll, 43I 90 has been received, and the same
amount paid out. ''Whatever NAV be
the advantages this association offers to
| its patrons say the Commissioners, cor
whatever may be its methods, the above
figures Lquotiug from the statement as
given indicate that it has cost 3IJ, 947 81
to do business amounting 10 So, T6j O.
] y,ps, IL g
months. 1t appears that the manage
ment receives annually say $4,000 and
under such circumstances the question
arises, What is there left for the invest
ors?'
at is evident that the public is being
! deceived, and yet all moneys are doubt
| less handled in perfect accord with the
! bylaws, and all participants being share
| holders they cannot perhaps complain,
as virtually they are doing their own
! business, and their only defense is their
own ignorance of the national system.
The liabilities are Slll,730 IS, and the as
! sets Sll0,230 s.. The deficiency of 81 800
| is made up of furniture and fixtures,
which cannot be deemed an asset. The
/ amount due from members Of 81 ,Sl5 20
may be very doubtful
There is also possibly percentage of
| the SlO4,OU loans which may be bad: and
even admitting that the loans are ali
| good, this association has not sufficient
assets to meet its liabilities. The monthly
receipts are SlO,705, and so long as these
continue there will be no trouble, but an
enterprise that absorbs % per cent. in ex-
! penses must, in the end, work an injury
upon those who are contributing, and
| the mystery yet remains unsolved how
such institutions can fulfill the promises
of great returns, which are so loudly and
effectively made to the public"
IMPERIAL SAVINGS AND LOAN COMPANY
OF Los ANGELES.
The report of this company was re-
ceived only after repeated requests and
much delay. The assets and liabilities
are the same in amount, S64,3l9 70.
From their report it appears that this
company is using about twice as much
| borrowed money as it receives from
members, and that 81, 100 of its assets con-
! siSt of members accounts i'll arrears, of
! which Sl,2l5 is for fines. Nearly one
! fourth of its entire membership business
! is delinquent which is remarkable, since
| it is generally believed that prompt pay
ment IS an essential feature Of building
and loan associations.
! at appears that it has cost this COM
pany over s., 900 to collect say SIG, 0O0 from
1 members and to borrow $4,000. or saw 70
| per cent. of the actual business of the
company. The bylaws provide for
an Auditing Committee, and there is a
! provision for a surplus fund. Unlike
/ most Nationals, there is no provision in
| the bylaws for an expense fund, but
there appears to be Glass E' stock, on
which payments are ten cents per share
! per month, and it is possible that these
] shares represent the amounts required
for expenses.
| The fines and withdrawal penalties are
more or less similar to other nationals,
and indicate similar methods, which APP
pear to be unfair, in allowing unreason-
able expenses and yet promising to in
vestors greater returns than are obtain
! able in the usual channels-two condi-
! tons that are impossible"
| ILLEGITIMATE AND MISLEADING.
In concluding their reportthe Bank Com
missioners state that, while the so-caIled
local building and loan associations
| offer to their patrons the advantages of
| cooperation and the benefits of economy
and thrift, the so-called nationals al
| though Identical in purpose, seem to de-
priVe their patrons of the very objects
for which these associations are organ
lied. The strictly National Building and
| Loan Associations of California are or
ganized and conducted mainly for the
| benefit Of the managers, whose promises
| to their patrons are very doubtful of full
| fillment, and whose methods are illegiti-
mate, to say the least.
| NOT COOPERATIVE.
The report goes on to say that IMAM
ayers of any commercial enterprise are,
OF course, justly entitled to all they can
| honestly make, but building and loan
associations, unlike ordinary companies,
| are entirely mutual concerns. all partic-
| ipants sharing in all benefits. 1t is here
that the nationals utterly fail; for,
Notwithstanding their pretentious an
nouncements, their calm to be COOP
erative is entirely mythical. Their
| 1nnfhn1s of ADVERTISING arc misleading