The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1898-02-19
IT WILL HAVE A RECEIVER.
A CRISIS AT LAST IN UNION b.
AND L. AFFAIRS.
Must Give a 100000 Bond, but
the Court Says He Needn't Ex.
pect to Enrich Himself.

The Union Building and Loan Asso-
citation will on Monday next be placed
in the hands of a receiver. This de-
cision was arrived at yesterday when
the Attorney Generals petition to that
effect came up for hearing in Judge
JohnsoE's court.
There is large element among the
shareholders of the association who
have all along been opposed to having
it's affairs turned over to a receiver,
but matters have arrived at such Il
crisis that it was deemed best to accept
the inevitable without further protest.
When the case was called yester-
day the Directors were present, also a
big array of lawyers. Deputies Attor-
ney-GeGeral Carter and Post were there
to represent State Building and Loan
Commissioners Gould and Ryan; Grove
L. Johnson, Judge McKune and J. b.
Devine appeared on behalf of the
shareholders in general; L. T. Hatfield
represented Directors Huntington and
for the association in its corporate ca
pacity.
1t was but natural that out of such
multitude of legal wisdom some plan
should be adopted that would lessen
litigation and expense to those con-
cerned. When the case was called Mr..
Garter asked the court to grant short
recess, as he had reason to believe an
agreement could be arrived at that
would save time and trouble.
Since adjournment yesterday after
noon,'' said Mr.. Carter. the attorneys
in this case believe they can agree
upon decree that may be entered
which will save a long trial in the
case. 1 have not had an opportunity
to speak to them with reference to the
matter as yet. l think we can gain
much time by adjourning until 2
o'clock, so we can discuss the matter
and agree upon a decree for the court
to enter, and we will save a good deal
of time thereby"
The court granted the request, and
the battalion of lawyers adjourned to
another room, where they spent nearly
an hour in discussing the matter.
On reconvening L. T. Hatfield an
nounced that in view of the proceedings
Directors Huntington and Tozer felt
justified in Withdrawing their objection
-
W. II Devlin, on behalf of Director
Peter Flaherty, informed the court that
it had been stipulated that his answer
and demurrer should be considered as
filed, and the same We're then formally
overruled by the court.
r. H. Hawley, acting Secretary Of
the association, was called to the witt
ness stand and examined as to the
condition of it's affairs, the purpose be-
ing to make the necessary showing to
warrant the appointment of a receiver.
Mr.. Hawley then explained the char
acter Of the business done. The cost
of the real property now owned by the
association amounts to S112.271 81 The
amount of loans outstanding, secured
by real estate, is S10S,300 o. The liza
bilities of the association amount to
1921 ,916 3d. as shown by the books,
but not actual values.
The witness then read in detail from
the printed reports Of the association
to show the character and value Of the
assets. The sum due on preferred
claims is $1O2, 554 60, and the balance
due stockholders, $139, 1862 TO-
Owing to the depreciation in values
the assets of the association are not
sufficient to reimburse the stockhold-
ers for their outlay.
The estimated expenses Of the as
ISOLATION for the ensuing year would
be about S11, 800, and the probable re-
ceipts about 5000. 1t would cost about
"a, 100 more to run the association than
would be received. There are two at
tachments on property of the associa-
ic
which suits might be commenced-over-
due obligations some S101, 7S4 Co. be-
sides some 500 interest
A number of questions were asked The
witness for the purpose of showing that
the association could not profitably con-
tinue its business. The responses were
to that effect
The case was then closed by the State
on behalf of the Loan Commissioners
Some discussion ensued as to what
should be the amount of the bond to
be required of the receiver. Commits
sioner Gould thought it should be at
least 100000
Judge Johnson said that one thing
should be borne in mind-that whoever
may be appointed receiver must not as
sumo that he is going to get rich out
of the position. Justice to the share
holders and to all parties concerned
demand that the receiver be held to a
strict account for his acts
1t was agreed that the findings should
be submitted on Monday morning next
The court added that by that time he
would be prepared to appoint the re-
ceiyer.