The record-union., 1898-01-20
A RED HOT MEETING.
SENSATIONAL REPORT MADE
BY THE COMMITTEE.
Assembling of Union Building and
Loan Association Stockholders
Last Night. I.


meeting last night, a large number be-
ing present and taking part in the dis
cuSsion.
The meeting was held in the office OF
Olson & Brown, who have succeeded 4.
K. Alsip and the room, was crowded.
Before the roll was called, r. I. Dew
lin said that II. L. Knight Of San Fran
cisco. representing a building and loan
association, offered to take the Union
Association into it, paying all its debts;
to place a valuation on its property,
each company choosing an appraiser,
and issue stock fully paid up, to those
who wish to remain, and pay S2o,OOo
to those who wish to withdraw, if their
stock amounts to that sum, the rest to
remain as shareholders, till such time
as may be agreed on. Those who stay
will receive 6 per cent. interest, ana
those who withdraw to get no interest
Mr.. knight was in the city, he said, and
would appear before the meeting if 1t
wished.
Wilber f. George moved that the
meeting organize and get down to busi-
ness call the roll and elect a Secretary,
If necessary
The motion was carried and the roll
was called. showing that most Of the
stockholders We're present or repre-
sented by proxies. A quorum was
found to be present, only 725 votes be-
ing required, and 1,061 being repre-
sented.
President Steinman declared it a legal
meeting, and the minutes were read and
approved.
R. T. Devlin moved that Mr.
knight be requested to address the
meeting and repeat the offer he had
in the afternoon made to the directors.
If the stockholders find his offer salts
factory, he thought it would be well
to send for him before the report OF
the committee appointed at the last
meeting be read.
w. f. George moved as a substitute
that the meeting proceed to business.
He had all the building and loan stock
he wanted, and did not want to be in
corporated into any San Francisco as
sociation. It might be that when the
report is read the association may be
found to have enough assets to be able
TO dispose Of them and pay its debts
and go into liquidation. He wanted to
get out.
T. H. Devine favored the motion of
no harm to listen to Mr.. knight.
Mr.. Devlin said that a similar prop
osition had been made by Mr. knight
to the Fidelity Building and Loan AS
sociation of Los Angeles and accepted.
The directors had been fayorably, inn
pressed with the offer, and it would do
no hurt to listen to 1t. The reading
Of the report and making public the
fot f7a IN icI1t
terms he might offer.
Mr.. Weinstock moved as an amend
ment that Mr.. Knight be sent for and
allowed to state his proposition, and
the motion was carried, only a few
voting against it.
Mr. knight arrived and said that he
had read Of the position of the Union
Association, and the directors had de-
cided to make an offer to it. Their
company would appoint a committee
Of three and the Union Association
could appoint as many as it wished,
and appraise the property of the asso-
citation and the loans upon it.
They could then scale down the differ
-ence and figure on it. His company
would give them paid UP stock for the
amount settled on as proper. He I'M
derstood that there was an overdraft
for 100000 in the bank. That, he
thought, was all right enough. Build
ing and loan associations have to bor-
row, but when the banks call on them
to pay their debts they must meet the
call, although it may compel them to
cease operations for a time and scale
down their stock He did not think
the association would make anything
by closing up its affairs. His company
would take the association and go on
loaning money and come out all right
in the end. His company, the Renters
Cooperative Building and Loan Asso-
citation, was organized under the old
law. and is about the same in its
workings as this one. 1t had the San
Francisco Trust Company behind 1t,
which handles all its securities, and it
has been. so managed that 1t has $500
coo loaned out, and has only S1,SOo
worth Of property that it has taken.
His company is all right. He could see
no reason why the Union Association
should expect to lose money. and did
not see how it could. Let it appoint a
committee and go on doing business
with his company as 1t has with itself,
if Il would agree to anything reason
able. but he would not want all the
members to withdraw as soon as they
went in.
His company has as many shares in
this city as the Union has, and If they
are put together can go on all right
It took in the Fidelity, MADEIRA and
Sausanto Associations. and is going
right along with them He thought
everything could be done easily and
satfsfart crilv and he did not think
the stock would have to be scaled
much. With trustees, the directors
cut very little figure. The trustees
examine loans carefully and pass on
them.
Mr.. weinstock asked If Mr.. knight
knew much about the affairs of the
Union Association, and Mr.. knight re-
piled he knew very little except what
the directors had told him, but from
what he had heard he saw little cause
for alarm.
Mr.. Wesnstock asked what difference
Fl would make if he found that q large
proportion Of the property on which
loans bad been made was held by the
company itself and he replied that it
would make TO difference; he would
take the property at its worth. He
would Of course have TO pay the stock
that had matured, or nearly SO. al its
maturity. II it was necessary TO scale.
he would do so. If the association went
in with his company. 1t would have
larger earnings, as his company does
business ri over the State. He would
tell frankly what he was here for: he
was here to get 1900 shares of the
- rts-t,