The record-union., 1898-01-20

yOoA AAS ~ ASbiOHSp 1idSC CAdiiiiAiSe1 iAAS
books and affairs of the Union Building
and Loan Association and found the
| annual report of the Secretary sub
stantlally correct as regards the books.
| The loans Of the association I con-
| slider good except in two or three cases
! and I think perhaps eleven thousand
dollars VIII cover any loss from fore
| closure. This amount is nearly all on
| the Berkeley property.
| The real estate belonging to the as
sociation amounts to over two-fifths Of
its assets. 1t brought no returns for
the past year but on the contrary was
an expense to the association Of ST.
226 in excess of the receipts. This
property that has been taken for nom
payment Of loans is at this date S1o3,-
Sl1 II 1t consists mostly of country
real estate, and there being little de-
mand and SO few sales, it is difficult
to ascertain it's true value, but, from
the best information 1 could get, l
place the valuation at $4,000. On this
basis the depreciation in the property
amounts to $33,S17 L.
| There is S19,7S5 80 delinquent inter-
| est. In my opinion the collection of
$4,000 of it is extremely doubtful.
Depreciation in loans 81, 900 90
! DepreclatIon in real estate....... 50, S17 u
doubtful delinquent interest. 10000 W
Total So i,S17 L
The apportioned profits are. s22,9S7 q
s31. .S29 s.
The S54s17 II represent a loss of
* per cent. I therefore make the
value of the series next due to be
$146 40.
I Sf6 49,
clatDn to be serious, but at the same
time | think the association can work
| out of it in due time If its affairs are
given the immediate attention they de-
rnand. The price of ranch products is
now, and doubtless will be for some
time, such as to hope that the prop
erty of the association may be dis
| posed of without the whole loss set
forth above
In the meantime, strict economy and
close attention to the association affairs
is imperative. NJ r. BEARD,
Public Accountant
August 10, 1897.
| ASKED FOR FAIRNESS.
Mr.. Devlin said he would not deny
that there had been loss to the stock
holders, due principally to depreciation
in land values, but some gentlemen wish
TO make it out greater than it is They
come here with a report and with
sensational resolutions asking that di-
rectors like Dr. Huntington, General
Tozer, Mr.. Flaherty and others of un-
blemshed reputation be asked to re-
| sign. Was this fair or just. He had,
on behalf Of gentlemen owning two
| thirds of the stock, asked to see the
report before it was presented and had
been denied, and only one or two ia
vored attorneys had been allowed to
see it. There are a few persons who
wish to make fees for attorneys and
use UP the money of the association, in
stead of settling up it's affairs and pull
| ing it out it's difficulty.
! The association will have to pay back
the money borrowed from the banks
Not to do SO would be to repudiate,
and he felt certain that the business
men of Sacramento did not want to go
into repudiation just now. He be-
lieved that each stockholder should
have copy Of the committees report,
and look it over and decide on it for
himself. There was no question that
property had gone down very low, but
the loans made had been good when
they We're made.
TO PRINT THE REPORT.
| He moved that the report. be printed
and copy furnished to each stock
holder, and that the meeting adjourn
for two weeks, to allow them a chance
to thoroughly examine it.
| V. S. McClatchy moved as an amend
ment that in the meantime the di
rectors investigate the offer made to
| the association and see what chance
there was of success, and what had
| been the result in the case of the FL
deity and other associations that had
accepted the offer, and report to the
stockholders at the next injecting.
| Mr.. Johnson was opposed to the mo-
ton to print the report, and also to
the consideration of the offer made.
| He hoped the stockholders would vote
it down and go on with the business.
WANTED NO INJUSTICE.
| Elwood Bruner thought the report
was highly infammatory, and no one
| had had an opportunity of examining
it before it was presented. 1t covers
period of twenty years and charges
the men who are now directors with
allowing the affairs of the association
i to be dragged in the dirt He wanted
fair play. Let US find out who IS re-
sponsible for the loans, he said. We
are asked to tell the directors to re-
sign, without knowing what they have
done Let us fill the four vacancies in the
board and print the report and let the
stockholders examine it, and not con-
denim such men as are on the board un-
heard Give them chance to be heard
and examine into values by experts.
Let the directors have fair play.
AVOID HAsTY ACTION.
Mr.. Weinstock thought that above
ali things the stockholders should avoid
hasty action. All should be done that
can be to let every one concerned have
an opportunity to bring order out OF
chaos He favored printing the re-
port and allowing the fullest opportuni-
| ty for investigating and allowing
chance for vindication. He also fa-
vored a consideration Of the offer made
to the association, and thought also, as
| the report recommended, that a COM
| mittee of three should be appointed to
call on the creditors Of the association
and try to make some arrangements for
winding UP it's affairs. 1t would be
mistake to demand the resignation OF
the directors. There was no doubt that
there had been negligence and Juggiery
in the affairs of the association, put 10
demand the resignation OF the directors
would be unjust, as some OF them are
clearly not responsible for the state OF
affairs. He would therefore oppose 1t.
! Mr.. Devlin renewed his motion 70