The herald., 1897-10-07
OFFICE OF THE HERALD,
LOS ANGELES, Oct. 6, Il


In recent issues of this paper a synopsis
Of the reports of the building and loan
commissioners has been given, bringing
the data furnished up and including the
fiscal year ending May 81, 1897. Since those
articles were published the new building
and loan commissioners, f. H. Gould and
W. A. Ryan, have forwarded their report
to the governor for the fiscal year ending
May 81, 1897, making the fourth annual
report of the board. The present report
covers a period with which the new board
had so little to do that the document may
be regarded as practically the account of
their predecessors work. Unfortunately,
the report will not be officially printed on
account Of the want of legislative appro-
priation for the state printing office, but an
effort is to be made to get thousand cop
les printed at joint expense of the associa-
tions concerned. and this will probably be
done, as it should be-
The year closes, say the commissioners,
with more associations doing business than
was the case twelve months ago. New as
sociations have been formed at four diff
ferent points, one small association has re-
by the Landers flasco have gone into volun-
tary liquidation. Gauged by the totals of
assets and liabilities. there has been gain
Of 1921 .61S.95 during the year, or .O149 per
cent. AS an indication of the general ten
dency of the times 1t is pointed out that
though the number Of associations matur-
ing series has not increased, and that the
average percentage of profits per series has
been .0961 per cent per annum, calculated
on a monthly compound basis. The local
associations now number 1885, the nationals
H. cooperative banks Pa total of ISL,
against 147 last year. Their gross assets
amounted to $21,971, ,92ss1 an increase of
1921, ,61s.95. Membership is reported as 32,-
SAG.
The most unfortunate features connected
with the business is the great volume OF
real estate held by the associations. This
increased during the year from $1,251, 242 Il
to 81, ,72S 476.66, a gain of SAT-, ,23454 seri-
ous question which confronts the associa-
tions in connection with the realty held is
the method of valuing it as a general as
set Each association acts on the idea of
its board of directors, and the value rep
resented may OF may IOL pe Wletl cdA VI
will be eventually realized. If the cost on
the books is in excess of the market value,
and no reserve has been provided, the
value of the shares is in excess of what
they should be, and injustice is likely to
result therefrom. The formation of reserve
funds is therefore strongly urged by the
commissioners.
The absolutely mutual character Of the
building and loan associations is empha-
sized and correct understanding Of this
fact, 1t is said, would seem to effectually
dispose Of the question Of definite con-
tracts. guarantees or promises such as
have been made by some societies. No one
can definitely anticipate the maturity of
any class or series Of stock or the cancel
lation Of loans made on the basis of such
maturity. If promised and carried out and
the facts show the stock to be short of
maturity, the release of a mortgage and
the cancellation of a loan are at the ex-
pense of every remaining shareholder.
Several new features in the form of tabu-
lated statements differentiate the present
report from it's predecessors. For instance,
the actual share transactions for the year
are thus segregated and summed up as