St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-30
ASSETS.

LIABILITIES.
Running stock loan. S27 1893 80
kunnlng stock investment .......... 217. $50 u
Full paid stock. ACKNOWLEDGEMENTS. 326,921 30
Prepaid, class A stock. ,............ rs $40 81
Prepaid, class B stock. II 260 90
Full paid fractional stock.......... 241 IS
Prepaid fractional stock. ........... 229 80
Goid bonds, series ACKNOWLEDGEMENTS. $4,000 90
Mortgages payable. 107 $50 90
Total ...,.... OBSERVATION-DISCLOSURES. 1861, 797 81
The report admits that the decrease
in real estate values is partially re-
sponsible for; the state of things. In
the explanations, the directors admit
that there are losses which appeared
upon the books not provided for in the
plan. In 1894 the association. by assess
ment, realized sum of 1924, 061, which
represented the then ascertained loss
by reason Of shrinkage in real estate
The other losses not provided for were
items of profit and loss, term expense,
accrued earnings and fines not collect
able. and Sundries which foot up $75,-
1928. When these items were marked
down, it left not enough to cover
After the 1894 assessment II was nat
ural that letters should come in from
all parts Of the country. in which
stockholders wanted to know just what
their stock was worth. In explana-
ton TO this repeated query, stock
which is signed by Il. F. NewhaIl, and
given by authority. of the directors.
1t explains itself:
Those who withdraw now very properly
are required to do 50 on the basis of the pres
ent worth Of their shares Those who remain
in will profit by any improvement that comes
within better times and enhanced values.
Members who do rot withdraw will not for
the present be affected by the assessment.
Their stock has the same pro rata claim on
the assets MS heretofore and in the event of
any improvement in values they viii be
more benefited by this adjustment for the
very reason that those who withdrawsare not
allowed 20 take out more than their fair
share of value. All shareholders are remind
ed that the present condition of the assoCia-
ton is abnormal and we have to contend
with things as they are and make the best
Of them II our real estate and other effects
are not worth what supposed they were,
nothing is to be gained by shutting our eyes
TO the fact.
The expenses of this association have al
ways been too great, and aim has been
TO reduce them as fast as practicable We
have q lease on our office at high rent,
more than the times warrant. This we shall
dispose Of as soon as possible. For the first
half of 1895 expenses were greater than III
come. but for the last half we have reduced
the one and increased the other until the diff
ference is slightly the right side.
''The association has become to a great ex-
tent real estate corporation. at a time when
rents are low and the demand for property
of this kind very slack We believe II is
for rise, and that we shall get better prices
as business improves. II is not our policy
however, to hold on when we can make sales
on any satisfactory terms. Some sales have
been made for very good prices where we
have accepted stock of the association In part
payment-the buyer giving a mortgage or
cash for one-half Of the purchase price.
1.-THE board has made an earnest effort to
manage your property to the best advantage
in your interests. The condition of the asso-
citation are not responsible for, and
we feel that we should be blamable If we did
not lay the facts find them before the
stockholders. II it is thought best that a
committee of stockholders be appointed to
look into the facts and causes which make
this assessment necessary shall be pleased
to place before such committee all data we
have gathered regarding values and let them
scrutinize the appraisal closely and compare
them with the books of the association We
are aware that the present board was elected
many stockholders that dividends would be
resumed at an early day. and it Is therefore
doublv unDleasant for US tn have such a re-
Port TO make at the end of the first wear. We
think. however. that any fair-ninded person
will see that with the assets that were turned
over to US a year ago present action was
an inevitable necessity
The association is still asking for
business. and has not applied for
receiver or made an ASSIGNMENT. There
is no crookedness charged or suspected
even by those whose money Is invalid
but the plan Of the association has
placed it in a shape in which the cas-
uaI observer would find little encour-
agement.