The morning call., 1894-10-27
..slls,e5l 4S
LIABILITIE
1Okdi' '.s...s.s.... .............
San Francisco, June 80, 1894.

Shortly after The filing of this report
complaints began to be rife as to the way
in which the company transacted its busi-
ness. The affair was kept quiet, but the
disappearance of the eX-president of the
concern did not tend TO restore public con-
fdeHce. and in the end the Attorney-Gen-
eTal OF the State was appealed to- General
Hart instructed the Commissioners of the
Building and Loan Associations of Cali
fornia to investigate the bo oks of the con-
Germ, and yesterday he received their re-
port. The document is by no means
lengthy, but il is decidedly to the point.
In shorT, 1t recommends the dissolution of
the concern. The report reads as follows:
OFFICE OF BOARD OF COMMISSIONERS
OF THE BUILDING AND LOAN ASSo
CITATIONS, 100 California street.
SAN FRANCISCO, October IS, 1894.
Hon. II. II. Hart Attorney General OF Cali
ror,id, San Francisco. Cdt.-DEAR SIR: 1t
becomes our duty to report TO you that the
Yerba Buena Building and Loan Association of
this city has been doing business in an unsafe
manner. thereby jeopardzing the interests OF
IT'S stockholders.
Inc!osed we hand you the last printed report
OF the association, dated July 80. 1894.
1t appears that this association has among
its assets twenty-One mortgages which are
known as LANDER loans, aggregatng SS4,-
800. These loans were made either TO Lander
himself or through him To other parties to
whom lie sold properties Lander himself was
a member or the board of directors. and held
the office OF president. It seems that three of
the loans-One standing in the name of Heffer-
nan for $4,000, one 10 Lander for $4,000 and
one to Lander for $4,000 made without
any security whatever, and have since been
charged up as a total loss OF S11, 800. On three
other of the loans compromises have been made
by taking the mortgaged property for face
value OF S13, 400 The secretary informs US
that ten more OF the loans, aggregating S3c,.
100, will have TO be foreciosed
This leaves the assets OF the association in
very bad state. AS already stated. 81, 800 has
been charged up as loss, and the directors
propose to meet further losses by scaling down
the book values some $4,000. We Informed
the secretary that. according to decision al
ready received from you In another case, this
assessment against stock cannot be made with.
out the authorization OF meeting OF stock
holders.
Many OF the stockholders and debtors have
failed TO meet their obligations to the assoc.
alton, as atteSted by the fact that dues delin-
quent amount TO S5475 and interest delinquent
to S437o 25-tOtaI delinquency s10.115 %.
Besides the obligations 10 stockholders for
dues paid in. advanced dues and accrued
pronts, amounting In the aggregate to $685.
3S7 b3, there Is due TO outside parties the FOL
| lowing amounts: Treasurer's account (over.
| drafD, S43,66S 95, and bills payable. s11 ,595
| We think the directors should be called 10
account for making such a large number Of un-
satisfactory losses, and should be held directly
responsible for loaning s11,S00 without any
security whatever. Whether it is desirable tc
| begin an action to throw the association Into
| insolvency We submit TO your discretion, with
the facts before as stated, and such other in
formation as you may require. If you appoint
| a meeting as requested by US the other day, we
Will call upon you ana submit full particulars IL
our possession. Respectfully,
GEO. A. FISHER,
| VIM. a. SPALDING,
Commissioners.
Ii will be seen from this report that the
late Mr.. LANDER got away with S84, 900 be-
longing to his own concern. 1t is difficult
| at first to conceive how this scheme could
have been worked, but full explanation
of Landler's method is to be found in ths
last report made by the Commissioners o.
Building and Loan Associations to Gov
ernor Markham. In one Of the opening
pages of this report are found these words
A certain building contractor who carried OIL
extensive operations had made use of these as
sociations in a systematic way to further hi
business. He was a member OF the director,
| OF several associations, served on the securit,
committee OF one and was president OF one
His method was TO purchase land In consider
able tracts, then erect buildings on the variou
lots and sell chem to his employees or whomso
ever he could induce to purchase. By reaso
OF his position in the building and loan assoc
atlons ne managed to secure loans on thes