The San Francisco call., 1898-07-21
MIGHT HAVE BEEN INVERTED
PUBLIC ACCOUNTANT SAID
 FALLS WE'LL"
Shareholders of the Union Building and Loan Association Kept in Ignorance by the
 Expert.
Special Dispatch to The Call.

SACRAMENTO, July 2O.-The posi- tion of J. l.. Fields, secretary to the Commissioners on Building and Loan Associations, is an unenviable one to say the least. On December 16, 1S96 he made a report to the shareholders of the Union Building and Loan Asso- citation, of Sacramento, wherein he took occasion to say, in the capacity of a public accountant" that the books and accounts of the association were in "correct and satisfactory condi- tion." AS matter of fact 1t would be most difficult to find the affairs of any association in a more unsatisfactory or deplorable condition.
 In one instance in particular the ac- counts showed that four years inter- est was delinquent on a certain loan, and in the aggregate 1t amounted to more than the original note. In many other instances 1t was evident that ther there has been woeful lack of bus mess sagacity. At the same time Mir. Fields reported everything in a satis- factory condition.
 One year later Major Weinstock, chairman of a committee of stock holders, appointed to look into the af- fairs of the association in order to dis cover the purpose and intent of EA-ds' report to the stockholders, addressed to him the following communication:
 Sacramento, Cal, Dec. 23, 1897.
 MT. J. L. Fields, Secretary Board of Commtssioners, U. B. and L. Association, Mills Building, San Francisco, Cal.-Dear Sir. At the meeting of the stockholders of the Union Building and Loan Associa- tion, held on Wednesday, December 15. MT. E. K. Alsip, secretary, read a report
  pression to the minds of his hearers that you had carefully looked into the matters thing entirely satisfactory. Was that the impression you intended to convey to the stockholders in your report? Your usual prompt reply will oblige yours yer very truly, Chairman of Committee of Stockholders.
 MT. Fields reply was as follows:
 San Francisco, December 24 1897.
 H. Weinstock Esq, Chairman Commit tee of Stockholders Union Building and Loan Association Sacramento. Cal Dear Sir: Yours of the 23d received ask ing as to the impression I intended to convey by the certificate that I made to the report of the Union" and read by certificate as secretary of this board; what I did sign was as public account ant" for I never have and never will give a certificate as an official of this board. I was asked to come to Sacra- mento and make up the annual report fo, MT. Alsip; put in over fourteen hours on the work on the books. and at the request of MT. Steinman and MT. Dew lin 1 made a certificate, as near as I can now recall, in the following form:
 T have made an examination of the books and accounts of the Union Build ing and Loan Association for the fiscal year ending December fl, 1S97 and find them neatly and correctly kept and that all moneys received have been duly ac- counted for; the values of the shares hay. not been calculated as these depend en- tirely on the value of the real estate owned which is subject to appraisemenr by a committee to be selected by your selves, as per order of the Building and Loan Commissioners.
 U. L. FIELDS, Public Accountant"
 There had been rumors of a dedication, but found that all moneys had been properly entered and all payments had been made by defendant, drawn on the Treasurer and duly entered. Beyond this the certificate does not go, and if it was have been so read, for I never intended otherwise and do not think that correct reading of the certificate can convey such an impression; on the contrary, with the l told MT. Steinman, MT. Devlin and MT Alsip that l could see no way but for the association to close from that day and go into liquidation; still better judges of the values of real estate than myself might put higher values on the property than I do, as I based my values mainly on my knowledge of the pro rata of the assessed values, as given by the county assessors to the market values and based on the figures given for the whole State, which are in possession of this office On that idea l agreed as a representative of the Commissioners that the matter might rest till the annual meeting and that by the shareholders and that an adjourn ment should be had for three weeks and on their report the question of continu-
 Trusting that this may be a satisfac- tory. explanation of my individual con- nection with the matter, I remain, yours very truly, J. l.. FIELDS.
 It appears from MT. Fields version of his employment that he was in no manner acting in an official capacity