The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-13
TO ASSESS STOCKHOLDERS
Latest Move in the Peoples
Home Savings Bank
MIDDLE.
CLAIMS FOR NEARLY 100000.
A New Dividend of About 8 Per
Cent to Be Declared to
the DepoSitorS.

The latest move in the situation of the
Peoples Home Bank middle is causing
considerable uneasiness among the stock
holders, for the proposition is.no less than
to assess the stockholders for 100000
worth of assigned claims, or at least to
compel the directors to levy such assess
mentS.
There is now before the Bank Commits
sion accommodation from the California
Safe Deposit Company stating that the
company holds assigned claims to the
amount of 100000, and making the re-
quest that the commission recommend to
the directors that an assessment sufficient
to pay it all off be levied upon the stock
holders. The commissioners are at pres
ent absent from the City and will not re-
turn for at least ten days, so until that
time at least the matter is in allegiance. In
the meantime objection from the stock
holders takes various forms.
1t is urged in the first place that not over
600 shares out of the 10000 could be
reached, for the greater part of the stock
is held by poor people who are unable to
pay any assessment whatever. The re-
mainder of the stock, the 600 shares, is
owned by people who will fight such
proposition, and the question will be tied
up in litigation long after the affairs of the
bank have been settled so far as ascertain
ing the value of the assets is concerned. 1t
is further claimed that this method will
lay the heaviest burden upon those inno-
cent of the wrecking of the bank, and
those who were the cause of it all will get
OFF without paying dollar. There is
none of the stock of the Peoples Home
Bank entered in the name of any of the
McDonalds, and this idea of assessing the
stock to liquidate claims would practically
release them from liability.
There are also few points of law as well
as questions of fact involved in the trans
action. The query Immediately arises,
Can the Bank Commissioners do anything
more than merely recommend that the
assessment be IeviedP And if it so please
can the board of directors nullify the action
of the commission by refusing to make the
Ievy2 The law gives to the board of
directors the power to levy assessments,
and gives no other body the right to dictate
in the matter. In view of this provision
many of the stockholders are confident
that the assessment will never be carried
through. In any case 1t cannot be lntelll-
gently levied until the exact value of the
assets is obtained. When its doors closed
the Peoples Home Bank had a good deal
more land on its hands than it knew what
to do with. Some of this land is valuable,
while a good zeal more OF it is not worth
as much as was paid for it some years
ago. Until it is all sold there is no way of
telling what the acres will bring, and, con-
sequently, any assessment is just as liable
to be wrong as right, seeing that 1t must
be based upon mere estimates.
While this undercurrent of uncertainty
is going on money is slowly accommodating
in the Golfers of the management of the
Peoples Home Bank, and there will soon
be declared dividend on all deposits. The
amount of the dividend is problematical
as yet, but it will not be far short of per
cent. Some accounts heretofore supposed
| to be almost useless and some mortgages
from which but little was expected have
suddenly turned in about $50, 900, and from
this the dividend will be declared. An
other dividend of at least 10 per cent is
imminent, for the sale of the Pacific Bank
property will bring sufficient for payments
to that amount. The first of these 6ivi-
dends will be declared very soon. 1t will
be the second one of per cent so far this
year, and with the dividend of 10 per cent
later on will make total of 20 per cent
paid to depositors during 1895.