The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-02
100000 In A BIG TANGLE.
TWENTY BUILDING lssooKlTT0Hs IN
READING, PA, SUSPEND.

$780,
TheiF Treasurer. Lewis Hkre-np, Dtsa East
Tear ana 10 Hs rrnpesaibis 20 strniahtep Oct
ME ATairs-Ms Deposited Rasueys In ME
Own Nsue ana Kept mis- Boets BADLY.
READING. Pa, July l.-The announcement was
made to-day that twenty Of Readings building
associations. with assets Mt S5, 900, have .
claim against their dead secretary's estate Of
5000 900. The associations have suspended pay
mcnt pending the Acknowledgement of accounts
between the various associations. An arbitra-
ton committee Of thrco has been agreed
upon. They are now hearing all matters
Of interest that may be brought TO their alton
ton by attorneys. stockholdera, and creditors.
Meanwhile, hundreds OF stockholders who ex-
pected their money on maturing shares this
summer, will have to walt. several hundred
thousands Of dollars being tied up.
In March, 1895, at an advanced ago, Lowis
Krcmp. their secretary. died here. He was
looked upon 40 the father VI Readings building
associations. having organized over fifty and
carried them TO q successful ending. Since
his death the accounts Of twenty OF his 1850
Citations were found to be most hopelessly
mixed. There il no evidence or even suR-
picion of dishonesty. 1t 10 regarded sim.
ply AZ a careless way Of keeping accounts
ana conducting affairs. Mr.. Kremp was very
rich. and when an association ran out he used to
go to the banks and on his personal notes would
raise from $75. 900 to 800. 900, paw of the stock
holders, and credit himself with the amount In
other associations. or take the real estate at q
fair valuation. In this way stockholders real-
lied 8 to IL per cent. on their investment.
When Mr.. Kremp died there was no one to
como to the front to raise tho cash to settle up
building association matters. Very many stock
holders stopped paying and asked for their
money. The twenty building associations
III i----
money, representing the savings Of working.
men, shop girls, servant girls. and business men
remains tied up. and there is no telling when
All the accounts in the twenty building asso-
Citations are In great confusion. The dead Secre-
tea TEA f is In sis a own an name men IN BSidk IN He hR' i SsGosi
money freely to other associations, transferre,
Sne in nG m,n sSe Of th tSane sas 20 P fhsrs Is i%s record q
II In any Of the books. The associations make
sStne o lsf iSsa e1f hnNs a hut T ii IL s don Ss at s Th'' Mr. NJ!
Kremp ran the associations as H. they were his
own personal property. deposited all moneys In
bis head. Wien he died he took ali he knew
to the grave with him; Many odd rumors
money on inside Information, that many other
favorites got, q tip and also drew out IN time
rirh IN p a short ti hreHo on Suildine association op
~erations of a doubtful kind; that many Of the
apSlsos Fs RsV eo a Sonds; The tbas si tfs y shsie dnas erse o.
directors left everything to Mr.. Kremp. and
that he had . free rein to do as he pleased.
Some 5000 people are directly interested In
the settlement now going on which Is being man
aged by a dozen or more lawyers; Reading't
building associations when In the high tide oi
prosperity did a great deal TO build up the city
Tho 5000 shareholders who are still membert
may have to wait a year or more to know how
much their losses win be.
The other twenty building associations not In
the Kremp group are reported all right. The
Kremp estate, against which this enormout
claim ls being made. may be worth 81. 900. 900
largely In real estate and mortgages. Tho OK
ecutors have not yet fled their account