The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1898-02-03
MUST DO NO MORE BUSINESS.
"A CHECK PUT ON THE UNION B.
AND L. ASSOCIATION.
Its Affairs to be Investigated-The
Directors Reply to Grove
/. johnson.

The State Board of Building and Loan
Commissioners have taken up the mat
ter of the Union Association of this city
and directed its officers not to transact
any further business, except in the way
of liquidation, until its affairs can be
investigated. To this end the commits
sion has directed the Attorney-Gen-
erals attention to the situation of at
fairs.
The. Directors of the Union Associa-
ton have made the following reply 10
the demand recently made by Grove L..
johnson. one of the interested share
holders. for the institution of suits to
recover securities alleged to have been
misappropriated:
SACRAMENTO, Cal, January 31st.
Hon. Grove L. Johnson, Claus Spreck-
els Building, San Francisco, Cal.-Dear
Sir: The individual members of the
Board of Directors of the Union Build
ing and Loan Association are in re-
ceipt of your request dated January IS,
1898, for the commencement of suit in
the proper court for and on behalf OF
the Union Building and Loan ASsocia-
ton and its stockholders, against Il. u.
Steinman and other officers and direc-
tors of the said association in relation
TO the payment of the sixth series OF
the capital stock of the Union Build
ing and Loan Association and to re-
cover certain sums of money said to
have been paid by the Union Build
ing and Loan Association pursuant to
certain orders referred to in your COM
munication, in which communication
there is also a request that actions be
commenced against B. L. Steinman
and others, claiming to hold notes of the
association, and your request to COM
msnce suit on behalf of said Building
and Loan Association against b. T..
Stenman and others on account of a
loan made by the Building and Loan
Association to one w. 0. Brown, and
also your request to intervene in the
matter of 3. L. Steinman against E. K
Alsip ct al, in the Superior Court OF
Alameda County, and in reply VIII say:
That the Board of Directors of the
Union Building and Loan Association
are giving all the matters of the assoc
citation attention, and they will continue
to do SO, and that they are prepared 10
take any steps necessary to conserve
the interests of the association and the
members thereof. And the Board of Di-
rectors now request you to submit TO
them any proof which you may have
tending to establish a cause of action
ir respect to any of the matters referred
to in your communication.
The Board Of Directors also request of
you a specific bill of particulars of all
matters Of which you have knowledge
that will enable them to determine what
actions should be taken other than those
which the directors have already in
hand, and that IN all respects you place
your information at the disposal of the
directors. and we assure you that such
information will be appreciated and Will
be given the attention ii deserves. They
have further to inform you that they
have received the following letter from
the Board of Commissioners of Build
ing and Loan Associations:
SAN FRANCISCO, January 26th.
To the Board of Directors of the
Union Building and Loan Association,
Sacramento, Cal.-Gentlemen: You will
please take notice that the Board of
Commissioners of Building and Loan
Associations have reported the Union
building and Loan Association to the
Attorney General, as transacting an un-
safe business.
Pending action by him you are directed
not to transact any business not in the
direct line of liquidation. Very respect
fully, F. H. GOULD,
VIM ALEX. RYAN,
Board of Commissioners of the Building
and Loan Associations.
They have also written to the Attor-
rey-General to whom the matter has
hean referred asking for instructions
as to their duties and powers, but have
not as yet received a reply. Respect
fully, r. II. HAWLEY, Secretary.