The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-03
THE FIDELITY WILL QUIT
A SAVINGS UNION ENTERS INTO VOL
UNTARY LIQUIDATION.
Five Series OF 81 900 E~ach-Snla-
ries Paid Omcers-LOans Made
In Chicago.


of this city. yesterday went into voluntary
liquidation. The Union has five series Of
stock issues and each series was Of $780,
coo capital stock. The present officers of all
series are James b. Patten, president: A.
NJ. Sweeney. vice-president and treasurer;
J. H. Slater. secretary, and o. G.-Hubbell,
OF Elkhart, attorney. These officers. with
Ia Il. Mitchner. James r. Henry, ex-senator
Isaac Leyden, of New Albany; DR.. G.. w.
Coombs, w. T. Patten and c. NJ. Young.
Of Danville, H., constitute the directory.
The Union has had a varied career. 1t was
organized and first conducted on rather a
lavish scale. Among those interested in the
organization of the Union were ex-Auditor
Bruce Carr, Harvey Lafollettte and Senator
Hubbell. The first few years were prosper
Gus and the business of the Union was ex-
tended TO Illinois, Michigan, Iowa and many
other States. There was some complaints
made during the first few years as to the
salaries paid to the officers, as the presi-
dent received s.. 500. the vice-president 81 300,
the secretary $4,000, the treasurer 81, 200. the
actuary 5000 and the attorney $500. Laws
adverse to the operation Of the company
were passed by other States, as they were
f~avoring local companies. For this reason
the territory in, which the Union could oper-
ate became restricted. In all $500, 600 was
loaned in Illinois alone and the Union now
owns property in Chicago said to be of the
value of $1,000. 1t was stated that there
were heavy losses on loans placed in Chi
cago owing to the depreciation Of the value
of property there following the worlds fair.
During 1896 applications for Withdrawals
Of stock began to be made frequently. so
that during January, 1897, the applications
announced to $4,000. BY March of that year
the applications decreased TO $43 900. but for
the past two years all the income has been
given over to the payment OF these appli-
cations. The income was not sufficient to
meet them at the time, and there was a
surplus of applications over the revenue
necessary to meet them Of about 5000 a
month. Now the Union is eighteen months
behind in the payment of these applications.
During the last few months the income has
been sufficient to pay the current applica-
tons, but not sufficient to take up those
which lave accumulated.
TIL debenture stock, which amounted to
$780, 900. has all been practically paid. as
but a small amount remains in each series,
not over $500 or $500 probably. TIL prepaid
stock was taken up three years age. The
$500, 900, and there are about 5000 ~stockhold-
ers. The assets and liabilities balance. 1t
is announced. and President Patten believes
that the Union will pay out in full. He
says 1t now owns real estate worth $l6S,0O
and that the property is renting well. Taxes
are all paid and Mr.. Patten said that IL
the Union is not thrown into the hands of
the court and not forced TO sell its real
estate at any price it will bring, he feels
series No. j, 2. 8, and 5. he thinks there is
no question. AS to series No. 4 there Is a
slight doubt, but that is the only one In
ha hfn fhnra 4 = nNan "A nnGGfhlllfV
of an assessment being necessary. 1t was
from this series that the Chicago loans were
r msae and par t Of + tb by pr rnIs = sef IS ow meat F Fne
that reason the fluctuations OF the real es-
tate market may cause a loss there. series
and in round numbers it has $751; 900 due on
loans and owns real estate of the value
Of s25. 600. OF this 5000 worth has been sold
good am asset as a loan. The reserve fund
amounts TO about $4,000. but as all losses
are charged against II: there remains
on hand about 5000 in this fund.
PRESIDENT Patterns STATEMENT.
President Patten has occupied his present
position about four years. Said he last
evening": ct do not think there is any ques-
ton but that we will pay out in full. We
have practically been liquidating for two
years, for We saw that this amount we could
not pay would continue to accumulate. We
now nave t0lDRS III uCH SndDc Tia VIC Sdh
go into liquidation and pay out in full and
so we have taken the step. We have a COM
plete statement Of our assets and liabilities
prepared and full information as to our con-
dition. The salaries now are much lower
than those paid when the Union was nrst
organized. The figures on the salaries at
that time do not represent accurately what
the officers received. The law at that time
prohibited an expense account, and the
money for the expenses was paid to the ON
GERS as being in the salary account and then
the officers paid the expenses. On each 20
account. and on each accent share, 5 cents
was paid. On debenture stock III was paid
on each s100. The attorney received 20 for
each abstract examined. which was paid by
the applicant for a loan and which was cred
tied on his salary of $500. The directors
received 50 and expenses for each quarterly
meeting for each series. This was up TO
July, 1897. when the salaries were reduced.
The president and secretary now receive
81. 900 each. the vice president and. treasurer
and the attorney receive $1,000 each. and the
directors receive the same pay they did.
with careful. prudent and judiclous man
agement i have no doubt we Will pay out
In full, but If We are thrown into the hands
of the court and compelled to sell our prop
erty regardless of real value or what we
could get at private sale, We may not be
able to pay out"
Notice of the action taken will be sent to
each stakeholder and all loans will be called
In. How long ii will take TO close up the
affairs of the Union is not now known
Senator Hubbell, who is attorney Tor the
Union. was in the city last evening and said:
There is no question about paying out. We
rave been practically in liquidation for the
past two years and now we merely take this
step to close up business when we can pay
out. The outstanding loans. together with
the value OF the property We own, is more
than the amount due TO nonborrowing stock
holders. The constant applications for with
drawa have made us take this STEP"