The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-04-03
TO SCALE DOWN ITS STOCK.
NO APRIL Dividend IN rae BLNEERp
LOAN AND INVESTMENT COMPlNH.


vIee-Prs,isert Esinss--s says tsss ere
FisSaeisi Deprrssisn, Tses=pstepey, sus
Aetusi nishsrs-tS ATE Rsspsus'bis-The
rt-ts Bssk EHs-irrr Was Called Il.
Instead OF the usual ausrteriy dividend on
April J. the Bankers Loan and Investment
Company mailed TO each Of its 500 stockhold-
srs . circular Invitation to attend a meeting
on Wednesday. April 4. in the eompany's
once. At 40 Wall street.
This was the first intimatton IN many that
there was any chance OF a failure Of the dlvi-
dend. The circular went on TO say that re-
port setting forth the shrinkags in the values
Of the company's investments would be reAd At
the meeting and plan presented for exchsng-
ing the present stock for . proportionAts
amountof new stock. the total Issue OF the new
stock to be equal to the present inventoried
values Of the outstanding ioaas. The circular
also said that no dividends would be paid at
present. in accordance with the advice Of the
New York State Banking Department
The Bankers Loan and Investment Com
pany was organized about four years ago I'M
der the act Of 1851. which IL generally known
as the Building and Loan Association act.
The method OF the company was to sell lie
stock IN the open market and to invest the
proceeds In bond and mortgage II issued no
debenturs bonds Of It's own.
The stock holders we're the sole owners OF
the company. The oficers we're merely
salaried employees All the prol's OF the
business we're divided among the stockh olders
as dividends. generally paid quarterly.
In three or four years stock was sold Mount
ing to 5000 900. OF which nearly $500. 900 came
from Connecticut. Last year S45 900 was paid
out In cash dividends to the stockholders
After the panic an investig alton revealed the
fact that the concern was not IS wealthy 80
had been supposed. A committee was APP
pointed to investigate. and In December ex-
psrts were put on the books. According to
Charles b. Hillhouse. vice-Prssident OF the
company. It was found that three causes
had been at work to depceclete the value OF
the the e9,Ipasnys assets and tness were the
m.nt and actual dishonesty
as a result Of the revelations then madeh
feer SlS. V ~ Burt the former former President who
had been TEN porarily suspended while the In
yestlgstion Vas going or was reelected Prssi,
81 q PalmsT Edward o: Graves Henri p.
and ". 4. shaw were directors The Board L;
smaller now. and none OF them 10 member
Of It. C .n..% + and Thomas G. Hlhou'e
At the request Of the, reorganized Board Of
in in about shout the middle q January and he and
the new management have been working IN
sympathy ever since The secretary. Galen II.
One OF the agents. q man in Texas. engaged
to make advantageous loans o. the company's
capital. has been sent 20 Jail for en- bezzle-
ment No new business has been done since
the Investigation began, tho sole effort
OF the new management being to get at the
exact financial condition OF the concern. and
to start over again.
superintendent Preston" said Mr. Hill
house. recognized that a company OF this
character. could reorganize itself just as well
as though . receiver were appointed Our
work for the last quarter has been precisely
that Of receiver; Yet this ought not to
brighten anybody. We are now on our feet
and thoroughly solvent. Every dollar OF in
debtedness now due has been paid and the only
future debts amount to about S1U.OOO all told
which are secured By half q million OF as
sets- The circular We issued was addressed
to all shareholders OF tho A and b classes.
that Is all who have paid up in full for their
shares"
ALBANY. April 2.-superinten dent Charles NJ.
Preston Of the State Banking Department
said to- might:
aiming the property OF the Bankers Loan
and In yestment Company for rome time.
The examination In not entirely com pleted.
but is far enough advanced to show that the
stockholders m ust scale down their stock from
10 to 20 per cent. II the company 10 to continue
business. The company Is selling no new
stock and will sell none until matters are In
satisfactory condition"