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

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 a sum Of 1924 06l. 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 G75,-
1928. When these items were marked
down. it left not enough - cover
shrinkGGe. ....
After the 1924 assessment i WIS 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
holders have received the following.
which is signed by Il. T. NewhaII, and
given by authority of the directors.
1t explains itself:
Those who withdraw now very properly
ere required to do 81 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 not withdraw will not for
lIlc present De GI-'tel Dy the assess
Their stock has the same pro rata claim on
The assets rs heretofore. and in the event Of
any inJrCT emC1t in values. they viii be
more benefited by this adjustment for the
Eery reason that those who witGdrawear2 not
allowed 70 lake out more than their fair
share of value. All shareholders ere remind
ed that the present condition Of the Gsaocia-
ton is abnormal and we have TO contend
with things rs hey and make the best
of them. II Our real estate and other oTects
are not worth what we supposed Jhey We're,
nothing is 70 lie gained By shutting our eyes
70 the fact.
The expenses Of this association have al
ways been too great, and our aim has been
10 reduce them as fast as practicable We
have q lease on our office a. a high rent.
more than the times warrant This we shall
dispose Of as soon rs possible. For the first
EaH OF ls55 expenses were greater than IL
come, but for the last half we have red iced
the one and increased the other until the diff
ference Is slightly on the right side.
The association has become to a great ex-
tent Il real estate corporation. al a time when
rents are low and the demand for property
of this kind very slack. We believe it is a
good time for individuals 10 buy real e-tate
FOR a rise and that we shall get better prices
however to hold on when 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.
The board has made an earnest effort 10
in your interests. The condition of the asso-
citation are not responsible for, and
we feel that should be bamabe If did
not lay the facts as we 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 DIeased
TO place before such a 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
with the hone and expectation the part Of
many stockholders that dividends would be
resumed at an early day and il Is therefore
doublv unpleasant for us to have such re-
rort 70 make at the end of the first wear. We
think. however that any fair-minded person
Will that with the assets that were turned
over to US a year ago our present action was
an inevitable necessity"
The association is still asking for
business. and has not applied for a
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-
ual observer would find little encour-
agement.