Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1900-10-04
SURVIVES THE CRISIS
Home Building and Loan Associ.
ton Again on Sound Finan.
cial Basis.
ENTIRE SHORTAGE Is MADE UP
Recognized With August Heinz
beck President and w. c.
Maucker Secretary.

the Home B Hiding and Loan associa
ltion was held last night in tho hall il
the Masonic temple for the purpose
of reorganizing and getting on firm
financial footing. 1t remained for the
stockholders to indorse the actor
taken by the directors in the recent
crisis and to vote to accept a reduc.
tion of per cent in the scaling of free
stock and stock certificates TO meet 6
shortage of 81, 400 that the director:
had pledged them to meet in order to
maintain the solvency of the institu.
ton. All this was done without q
Dissenting voice from the IS or more
stockholders present.
| President W. G. Maucker called the
meeting to order and asked Sewall
Dodge to act as temporary secretary.
Mr.. Maucker then explained that the
board of directors had outlined plan
of reorganization, with the advice of
attorneys. that should be within the
terms prescribed by law and that such
plan would be laid before the meeting
to follow out.
| Tells of the Shortage.
| Going further. he reviewed, at some
length, the crisis through which the
association has passed.
Secretary r. A. Donaldson's short
age began at least six years ago, and
as he was compelled to bear the in
| terest ON his Indebtedness from year
to year, the amount taken had to be
increased annually. That the direct
ors did not become aware of the state
of affairs was not to be wondered at
when a state expert looked over the
accounts each year and was also de-
ceived. Only last year. that officer
declared the set of books kept by Mr..
the state.
The total amount misappropriated
was $25, 631. OF this amour: s., 500
had been made good by Mr.. Donald
sons own estate, So, 600 had been
raised by his relatives, 81 800 by his
bondsmen, $S. $50 had been sub
scribed by the heavier stockholders
and there were So, 400 of undivided
profits. 1t had been figured that it
would require about 81, 400 in addi-
ton to render the association solvent
and this sum the directors had
pledged the holders of free and certi-
lied stock to raise. 1t would cost
each about per cent OF his invest
ment and borrowing members would
not be assessed. The only alternative
to this plan lay in going into liquida-
ton and this would not yield a re-
turn of over so cents on the dollar.
The SIS. 600 was furnished by Mr..
Donaldson relatives, it was stated, on
the promise that the association would
not enter complaint against him. But
within two hours after the money had
been received all the directors were
summoned before the grand jury to tes-
tify on the case. The bondsmen could
not be legally held for the $4,000 for
which Mr.. Donaldson was bonded, but
had voluntarily put up the sum
named.
New Board and OhHcers.
At the conclusion of his statement,
Mr.. Maucker convened the directors
and rendered his resignation as presi-
dent. which was accepted. Then in
behalf of the directors he rendered the
resignation of that body to the stock
holders. A motion to accept the
same gave way to a substitute calling
for q committee of three TO nominate
q new board of 10 directors, retaining
the seven who remained on the list. |
This was put by Temporary Chairman |
Allen d. Welch and carried, and a COM |
mittee composed of H. II. Cleaveland, |
Allen D. Welch and II. c. Schaffer |
was appointed. The committee's re-
port was accepted, the directors
elected, and subsequently arranged
the length of terms among themselves
as follows:
Three years, W. c. Maucker. c. J.
Larkin, August Helm beck, M.
Buncher, A. Anderson; two years. j.
NJ. Buford. Sewall Dodge. William
E. B. McKown and /
Harry Schreiner; one year, John Ohl-
weller, S. Lewis, J. McElroy, r. q.
Hudson, H. c. Schaffer.
When the board OF directors had
been chosen the stockholders voted
to meet the obligation
Of 81. 400, as already stated, and a
vote of thanks was given the retiring
BOARD of directors for the satisfactory
manner in which they had carried the
association through the period of
LANCER.
The directors further organized by
,lecting August Heimbeck president,
:. j. Larkin vice president, w G.
daucker secretary, j. NJ. Bufcrd
and Jackson & Hurst at
orneys.