The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1892-03-04
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This l. the big heading IL the San
Francisco Examiner TO an arralgnment Of
National Building and Loan Associations.
The Bank Commissioners submitted the
report 10 Govesror Markham on the Ma
tional Building and Loan Associations Of
the state, IL accordance With the request
made by the league OF local building and
loan associations iass year, heace the fig.
urcs given may be depended OF. As
there are quite number Of Albany men
who have invested lu these traps, pariicu.
larly one Of them, we give parts ot the
long report. which ehe Examiner says
struck like bombshell. and may possibly
Hit some people Ia different parts OF Cre-
gon the same way.
The Commissioners show that teveral
OF these associations are q delusloa and a
snare and have been run solely In the Ia
terest Of the officers.
Figures quoted from financial state
ments would make Il appear that some OF
them exist only upon the moneys paid by
the new victims constantly joining.
The Pacific States Saving, Loan and
Building Company Of San Francisco, the
report says. Is apparently In floasIshing
condition. Its liabilities are $36f.7S6. 80,
and It's assets $500, ,o56.3o. These figures,
hswever, may be misleading, for the rea-
son that thes have been taken slom two
sets OF books and represent only the cash
transactions. while II Is claimed that there
Il much otthe business that is not cash.
II, however, they are the exhibit OF the
eompany's business. Il Is. 10 tay the least,
most unsatisfaetory.
II h claimed that the net profits OF the
concern above expenses for the year wac
$t,o3s.Sf, while the amount OF business
was S2S4 900. The exrenses n shown Ia
the statement were $Io.66i 81. and II the
expense fund received s4Sooo, there fe.
mains about 100000 Which has been abb
sorbed, but how or where Is not shown by
any OF the statements submitted.
In the statement OF the assets and tla
bllities there 10 no reserve fund, although
10 the advertisement the reserve fluid IL
stated At $rso4t.7a.
Ths eonciusioEa arrls sed al are that this
company Is a bonanza TO the managers.
and whether II will prove source OF pro-
III 10 the shareholders depends entirely
upon how good the loans arc and how
long the Roard Of Directors remain as II
u. The reports on theContlnental u & l.
A, the Republic 4 0 x l. 4. The Renters
cooperative investment Co. al show them
to be run almost exclusively In he inter
eat Of the mAiiagers. nearly all the profits,
as In the case Of the Pacific, which oper-
ated considerably In Oregon, going lato
the managers pockets.
II Is evident that the public Il being dc !.
ceiyed, and yet all the moneys are 'eelng
handled In pedect accord with the by Laws.
The shareholders cannot complain. a. vir-
tually they are doing their own business,
and their only defense Is their ignorance
oi the national system.
While ko-called ''iocai" building aad
loan associations offer 10 their patrons the
advantages Of co operation. The 20 called
nationals, although identical Ia purpose,
seem TO deprive their patrons OF the very
objects for which building and loan ass1-
Citations arc organized.
Strictly speaking, the national building
and loan associations Of California arc APP
parently organized and conducted Ter the
benei, OF the managers, whose promises
10 their patrons are very vague and whose
methods are Iilegltimate.
The time Is not far distant when many
who are members will realize that their
funds instead OF aecumnlating and inerras-
Ing are being largely absorbed By the
managers OF the National building and
Loan Associations.