The record-union., 1897-12-16
STOCKHOLDERS ARE At SEA.
THEY WANT EXPERTS TO SHED
SOME LIGHT.
Union Building and Loan Associa-
tons Affairs to be Fully
Investigated.

uS dIlIludl Iu6tliUS VI eAAN
holders of the Union Building and Loan
Association was held at the office OF
Edwin K Alsip last night for the pur-
pose of electing officers for the ensuing
year and transacting such other puoi
ness as might come before II.
The affairs of the association have
been in such condition for some time
past as to cause murmuring among
stockholders. and as a result $40 shares
of the 1913 held in the ASSOCIATION
were represented, and the President
B. u. Steinman, announced a quorum
present.
After the minutes of the previous
meeting had been disposed of the Sec
retary E. X. Alsip submitted and read
his annual report, which embodled the
figures of Expert ]. L. Field OF san
Francisco. who recently exported the
hooks of the association. The recelpts
and disbursements balanced, each Tor
the year being Se0,l0I W.
Secretary Alsip had also prepared a.
list of all property on which loans are
held by the association, with the
amount of the loan and the present
valuation of the property. This list
showed that all the property, since the
loans were made, had deprecated
about - per cent.
Mr.. Alsip also explained that in order
to meet matured payments to STOCK
holders the Board of Directors, rather
than call in outstanding loans draw
ing per cent. interest, had borrowed
$4,000 from the National Bank of D.
O. Mills and $40 900 from the Farm
ers' and Mechanics Savings Bank, CIV
ing mortgages on the property on Whlch
the loans had been made, thus making
per cent. on the deal for the asso-
citation. even after the obligations 10
stockholders had been met. Portions
of the amounts borrowed from the
banks had, however, been repaid.
The -Secretary's report further stated
that there is now S94,7S due TO stock
holders, and that as fast as loans are
called in or interest collected it Is ap-
piled to hquidating the notes.
Frank ID. Ryan wanted to know Why
the association was not realizing any
thing on its loans and the President,
MIR. Steinman replied that 1t is with
the society as with everybody else
nobody is realizing these days because
property values have deprecated to
such an extent that the amount loaned
is in many cases worth more than the
property He further said that Tor
over three years the association has not
made a single loan.
Grove l.. Johnson arose at this point
in the proceedings. He said he had
listened attentively to the Secretary
report, and after doing so knew very
little more than before he heard
it. What he did understand. he said,
was that for the past three years and
Il hot
the company has a large amount of
real property on hand, and is badly
in debt.
MIR Johnson said he was surprised
to learn that no money had been
loaned of late, and recalled the fact
that for eleven years he had been pay
ing in money under tie impression that
it was drawing interest. He thought
the directors were honest and square,
but from what he could understand
the association was hopelessly insol-
vent, and like all business men who
found themselves in similar situations
he believed ii best to take account of
its assets and find out just how the
association stood before proceeding to-
elect directors for the ensuing year.
Mr.. Johnson said in his opinion the
books of the association ought to be
exported and that accountants who
are neither directors nor stockholders
ought TO be employed to do it. In view
of that opinion he had. he said pre-
pared a resolution he desired to offer.
The resolution was as follows:
Resolved, That James B. Devine,
Howard kimbrough and Robert II.
Hawley be. and they are hereby con-
stituted a committee for and on be-
half of the stockholders of the Union
Building and Loan Association: and as
such they are hereby authorized and
empowered TO investigate the affairs
of said association, and to report to the
stockholders thereof at their next meet
ing q full and detailed statement of the
affairs and property conditions Of said
association and of its assets and liabil-
ities; and,
Resolved further, That the Board of
Directors Of said association be and
they are hereby directed to furnish to
said committee the books and papers
of said association, and do whatever
may be necessary to enable said COM
mittee to make the report above or
dered; and,
Resolved further. That this meeting
stand adjourned until Wednesday. jan
nary 10, 1898, at 8 o'clock p. M
Robert T. Devlin said that during
the past two days he had, in the inter
est of a number of stockholders. gone
over the books Of the association. and
from what he had learned he felt pos
tive that the present unfavorable af
fairs of the association are due entirely
to depreciation in real estate values.
He explained that matured payments
had fallen due which might have been
paid by selling property or calling In
loans. but this the Directors did not
care TO do. as in case of forced sales
heavy losses might have been entailed
upon shareholders.
The books of the association, Mr.
Devlin said. have evidently been cor
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