Omaha daily bee., 1895-01-14
HOW The UNION WAS LOOTED
Sketch Of the Ruins Of Des Mones Build
ing and Savings Association.
GREAT SNAP ENJOYED BY THE MANAGER,
Manager Richmond's Defiance of the Re-
ceiver-si>teen Fer Cent of Receipts
Hardly u Drop in the Expense Bucket
Lax Laws Facilitate Robbery.

DES MONIES, Jan. 13-(specal)-Th
affairs OF the Union Building and Savings
association Of this city seem to be so hope
lessly entangled in the meshes Of the law
that 1t will probably be some weeks before
the stockholders of the concern will get a
statement Of its present condition. Enough,
however. is already known to warrant the
statement that the deluded shareholders of
this defunct institution will never realize
over 40 per cent on their stock. This margin,
through the laws delay and legal bcker-
ings may even be reduced to less than
one-half Of the amount by the time its af-
fairs are finally wound up.
Receiver Wilcoxen, who was appointed a
fortnight ago, en- taking possession Of the
office discovered that three Of the principal
books were missing. Secretary Crawford, on
being questioned in regard to their disap-
pearance, assumed the role Of Young Man
ell-What-He- Knows and stoutly
insisted that they took their departure-just
when he didn't know-wthout his knowl-
edge or consent, and referred his questioner
to his general manager w. S. Richmond.
Mr.. Richmond being called into court,
treated the matter with great levity, and Mr..
seemed to regard the displacement OF the
records of the concern as a good joke on
gard the matter in the same light, and Mr..
Richmond was finally forced to assume
more serious tone, but no amount of cross
questioning could make him disclose the
present hiding place of the desired docu-
| ments. Later he set up the plea that these
books are his private property, being the
mere compilation and condensation of rec.
cords and papers in the office made at his
| own private expense for his personal use.
The court has given him time to prepare
| papers sustaining this claim Meanwhile
| the hands Of Receiver Wilcoxen are tied up
| and the expenses of the concern continue to
increase.
The statement of the affairs of the con-
cern two months ago, when a receiver was
| applied for, placed the assets of the asso-
| ciation at $150,0O0, and liabilities at Sill 900,
| an apparent impairment of the capital to the
extent Of $21 900. 1t has since been learned
however, that the items making up
the assets included personal and expense
accounts, furniture and fixtures and others
| or similar character, from which nothing
VIII or can ever be realized, aggregating
| thousands of dollars. One loan of $50, 900
was made upon some outlying town lots at
basis of $3.50 each, when the cash value of
| each OF said lots is not one-third of that
| sum. Other loans were also made which
| would bear out the presumption that the
managers were either extremely reckless
| or else got rake off, from favored cred
itors. Unless Mr.. Richmond can be made
to produce his books 1t is not likely that
any satisfactory accounting will ever be
made to the shareholders. and even at the
best the prospects are anything but promis,
ing for speedy and satisfactory adjustment
of its affairs.
HISTORY OF THE CONCERN
The Union Building and Savings associa,
tion filed its articles of incorporation and
began business July 1, 1890. The objects of
the association were to afford profitable in
vestment of money and encourage and assist
q hn hN11 ", tI,n ,,stt
estate by loaning them money, to be repaid
in monthly installments thereby increasing
the number of home owners in the country
all this to be done in the manner and the
means set forth on the statutes. Des Moine;
was named as its principal place of bust
ness, but provision was added extending
its business into other states and terri
tories' The capital of the concern wa!
fixed at S5OOOOO00, divided into shares o.
800 each, said shares to be paid for II
monthly instalments of So cents each. o.
this amount cents went into the profit anc
expense account, and the balance into tn,
loan fund Prepaid shares were also author
lied to be issued in the manner provided fo
: in the bylaws.
All of the expense of procuring business
Z and conducting affairs was to be met anc
paid out Of the Expense fund.-" which con
sisted of the membership fee of 81 each ant
the cents mentioned. A proviso was addet
to the effect that no Indebtedness for eX
penses shall be contracted or paid out O
any other fund than the one named no
shall the shareholders be liable in any othe
, manner.
a The limit of each loan to the members q
the association was fixed at not more tina
= 80 per cent Of the withdrawal value" G
share or shares owned by said members
The withdrawal value Of each share, G
d course would be so cents on each MONTH
installment paid in, together with earne
d proportion Of accrued interest or dividen
, declared If this provision had been strctl
G observed and all loans properly secured tn
O shareholder in the worst contingency wa
guaranteed the return of all his money, eH
cept the original fee Of 81, and 8 per cen
l. of the money actually paid in. AS is usut
e in such cases, duration Of the concern wa
n fixed at twenty years, with privilege
renewal"
;. The affairs of the association were place
i in the hands of six directors and the article
J., We're signed by o. B. Ayers, G. T. Carpenter
Lewis Schooler, A. j. Baker, S. w. Maltb
and j. w. Mufiiy. MIR. Ayers was prom
10 nent insurance man; Mr.. Carpenter, since d,
d ceased, was the well known chancellor
"a Drake university; Mr. Schooler, an eminer
! physician Mr.. Baker, formerly attorne
i general of the state, and Mr. Mufily, an IL
surance agent and prominent politician
: These parties constituted the first board
- directors, though the business was large
=, conducted by Mr.. Muffly, who was chose
secretary.
q WHEN THE LOOTERS GOT IN.
ct For two years the affairs of the conceI
Of seem to have been conducted to the sati
De faction of the shareholders, but, for son
s. reason, at the second annual meeting
s radical change was made in the articles
SIS incorporation. BY an amendment to the
IN articles filed October II, 1892, the office
40 treasurer was created and the board
nt directors changed from six to mot less thi
I'd five nor more than fifteen" The old boa
90 was increased by the election Of Elm
IN Higley, H. Rickel, ]. S. Anderson, John
ne Reed, A. b. Van Albee, j.. c. Stoddard '
" f. Bracksmit, George Lincoln and w.
al Richmond, making practically a new boar
40 From this time on the old members al
% original incorporators appear to have eth
dropped cut or withdrawn and the affairs
. the association have been largely in the han
" of j. l.. Crawford the secretary, and W.
Richmond, who was elected general manage
The total number Of shareholders is u
known, but the receipts of the conce
averaged over $4,000 per month, and for
short period before its insolvency more tn
double that sum was taken in monthly. TT
~ would furnish annual expense accou
according to the articles of Incorporate
n Of at least $4,000, besides the membersf
'e: fees. 1t is also known that the drectc
ey took $15 900 from the loan fund and add