The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-11-18
AT A MEETING HELD YESTERDAY

Association, is causing that organization
any amount of trouble. 1t will be remem-
bered that Mr.. Lander about year ago
left suddenly for Vancouver, where he is
now located. The unexpected shrtnkage
In the value of real estate was the cause
of Mr.. handlers hasty depar ure. lie
was at the lime president of the loan as
ISOLATION which is now investigating his
career and others who were intimately
connected with his business affairs.
Everything in the real estate line was
on The boom when Mr.. Lander came into
office, and possessing q speculative turn
ofmind he ventured into the real-estate
market buying numerous pieces of prop
city and holding them for high figures.
When the panic came on naturally Mr..
Lander suffered with hundreds Of others.
1t turned out that the associations pres
Ident had not used his own capital in the
Variou investm ents but had by hook and
crook sppTopria ted the funds Of the loan
4 association
The stockholders of the company met
yesterday after noon at B'nai Birth Hall
TO ascertain the exact amount of the de-
falcatlon aud TO devise methods whereby
the association might sg In be put upon a
sound running basis. M definite action.
however, was taken. Everything was left
in the hands of two committees 10 take
charge of the whole matter.
Mr. Richards. the acting president of the
assoclailIn. presided over the meeting.
b. B. New man, who took an interest in
the proceedtn gs. asked of the secretary the
nature of the assets of the association. II 9
was informed by the secretary that they
were in the form of real estate. which was
located in Alameda. South San Francisco
and San Francisco.
The secretary then Rad prepared
statement of the condition Of affairs. In
the paper is. sta FED that sat the annual
meeting held Ju ~ 20. 1894. the reports of
the ASSOCIATE on showed that it had sus-
;tained losses by reason of the dishonest
practices Of the former president of the
company, lie v is Lander, who as president
OF this corpora ton shamefullyrobbed the
company threu gh practices dishonest aud
criminal"
According 10 the paper read The amount
of the .liabll tiles in excess of the assets
was 81 ). 333 10. The. paper was signed by
J. D. Ricnards. G.. w. Hahsborough, F..
Sperling and E. GunZbnrgh.
3. B. Newman moved that committee
be appointed 10 Teappraise the property of
the association. T. e said that be did not
want to reflect upon the work of the COM
mittee who had Just gone over the work.
but be thought it advisable to go over The
ground again. He asked that the new
committee be requested to make affidavit
TO its report. The m.tiOn was carried and
the following committee was appoint ted:
C.. B. Hohson. j. f. Sweeney, B. b. New
man, j. d. Abrams and I'll. c. Burnett.
Mr.. Newman thought the c0rpOTasi0n
had exceeded its cooperative powers when
st Borrowed and loaned money. He argued
that association had acted unlawfully
indoing as it had dene
e. MIR. Forester. the attorney of the assd-
citation, quoted from the statute books
where the association was fegalized TO
borrow and lend money. Newman denied
that the CORPORATION had power to borrow
money and lend TO Lander. He held that
it had only the privilege of borrowing
money for cooperative purposes.
j. f.. Riley said it was only waite of
time to discuss the subject. '.We want to
see how LANDER has used our cap tai. ="
: remarked the speaker. This is the ques-
ton before u.s." He accordingly moved
that an Investigating committee, composed
: of three stockholders, be appointed TO eX-
anime all the books of the association.
The mo ion prevailed and j. E. Riley, +.
ii. MeIZb sch and b. 3. Newman were APP
pointed on the committee.
Attorney General Hart declared that.al
this trouble was brought about by placing
200 much confidence IN one man. He said
thatit was the natural result of one-nan
power. The association" said General
Hart must have known that LANDER
.. was making these loans on shaky pieces of
property. but the stockholders thought
that their president knew his business.
This same thing always occurs in the po-
llticaF world Whenever one imam is given
absolute control. This whole question Is
the history of institutions governed by
pDe-man power"
.GeperaI Hart said that the association
would be Ompelied to d. one oftwo things:
5tmust either scale down all:the stocks to
their present value, or else the organization
must shut up house and go out OF busi ness
The loan ASSOCIATION has in. round num-
hers about $50 900 In paii-up shares. The
deficiency. is $4,000. Now, in order that
the company may continue In existence
according to General Harris plan, every
person who has a .paid-np share of 500
will be scaled down 10 $75, or, in other
words. each shareholder Will lose % per
cent of his capital invested.
Hart thought it proper. course to have
all the property appraised, and whatever
the loss NAV be to charge it to a SUSPENSE
account. General Hart said there was no
lew which sanctioned the scaling of STOCKS,
but that it, could be done by the stock
holders. he would not recommend the
.
produce an additional expense and the re-
cever might scale the stock awav entirely.
j. T. Sweeney asked General Hariif the
secretary was under bonds. The latter re-
piled that he didn't know, but it made no
difference. as the board of directors were
RESPONSIBLE for all debts.
Newman wanted to know il the scaling
down process was the only feasible way
out of the difficulty. lie stated thatevery-
thing was in gloomy condition, and that
be favored disbanding. He didn't want to
sink any more of his money. Newman
Thought it a good policy to. dfsband and
divide the balance on hand among the
stockholders.
Hart replied that Scaling down" was
<the only way out. He held that no new
members would affiliate with the associa-
tion unless this debg vas liquidateG.
Mr.. MeIZBacn wanted a committee az
pointed which would shield nohody. He
seemed to think that certain of the pres
eDt officers were guilty rs well as Lander.
Mr.. MerZbach wanted the Attorney-
General to give them two weeks in which
TO straghten mp matters. General Hart
granted the request, and added that be
thnf fk-,.z frNr<T Lon q