The sun., 1901-08-03
REPORT ON
SHORTAGE
Operating Expenses of Guarantee
Loan Association Were Heavy.
STOCKHOLDERS In SESSION
Auditing Committee Presents a Re-
port Which Surprises the Share
holders-Mr. Knowles OBJ
jeots to Part of Report.

a appointed w 'hNN's'S"SS
the affairs of the Guarantee Building
and Loan Association made report ut
!, meeting of the stockholders held at the
office Of the association $50 Market street
yesterday. Their report showed a short
age Of $25.645.69. The incurance com
missioner had reported shortage of but
So, ,016.
About 100 stockholders including a
dozen women, We're present at the meet
ing which was stormy one. l.. Irving
Handy, William i. Kurtz and Walter
III. Hayes We're present in the interest
Of stockholders. The room was crowded
10 sufiication.
1t was suggested that larger quarters
he obtained 1t subsequently was report
ed that the Board of Trade rcems could
he had for SIS, but before resolution
dealing with the subject could he framed
half dozen stockholders inquired who
was to bear the expense. ''The asso-
.intoi," replied one fellow. "Oh, no.
We are under sufficient expense alreadr.'
Finally one liberal man volunteered to
bear half the expense. No charge was
made. however, and the meeting pro
ceeied.
s. John Abbott, State Senator from
Milford, was made chairman, and George
i'. Money of Delaware City, was made
secretary Of the meeting.
Joseph Dean of Newark, presented
The report of the auditing committee
which caused a sensation.
After the report had been read, w. w.
knowles. formerly secretary of the as
,ociation, arose and declared that there
Nas an imputation against him in the
.cport. He said it was not a just state
ncnt in that it did not set out the ex-
lenses for the year prior to the one in
which he was secretary.
In his year. which was last year,
the receipts weie $4,000, and the operat"
ng expenses $4,000 Thus approximately
,3 per cent. Of the total receipts We're
lsed for operating expenses. MIR.
Knowles declared that in prior year tho
perating expenses had been over one
half of the total receipts
He denied that he had done anything
wrong in the conduct of the office OF
ecretary. and remarked that when he
ook it he had little experience in build
ng loan matters.
The report of the committee gave
| summary of the receipts and expenses
| Turing the whole time the association
| vas in existence. which showed that
| he total operating expenses were over
| 10 per cent. of the total receipts.
| While the summary Of the committee
| ,howed nominal assets of about $64,o0o
md nominal liabilities of about $S9,0oo,
he exact shortage was $25.645.69.
The committee. on the other hand.
tated verbally that it was unable TO
omplete its report because Receiver
| }einhardt had taken possession. When
10 stcpped in they were figuring on an
| III nf nSSptS the W0N OF
unpaid dues, etc. which would increase
he assets from $4,000 to $4,000 and de
rcase the liabilities that amount
u, ]. Reinhardt. the receiver for the
association, was in attendance ut the
rceting. 4 proposition was made to
,etition the chancellor for Il co-f"ceivei'
i Not with Mr.. Reinharlt. the new man
q be from down the State but il waS
lecided that it might be more expensive
nd besides. the utmost confidence was
,NpreSsel in Mr.. Reirhardt.
Mr. Whiteman announced his wiling
css 10 resign as vice president, hut
when Chairman Abbott asked if that
would carry the general counselship with
| /. he did not say that it would. When
he motion was made to have the report
printed in the papers Mr.. Knowles
,rgcd that it would be unjust to the
Ulcers to do So and others thought u
would hurt the association; so 1t wa
,uted OWN.
II was agreed to have another meetin.
called when Received Reinhardt hn'
omplctcd a report of the association
J fairs.
Although stockholders admit tina
fhe association's finances are in bn
/ shape they are OF the opinion that MI
Rcinhardt can put the loan on payin
basis. To this end il was suggested tina
tockholders extend the time of thci
Intended withdrawal from the associa
tion until one year hence. The suggeS
zion did not come before the meeting !
formal way. however. 1t seemed TO !
he sentiment of majority of the Stocl
: lholJers that the association might I
:, continued under new management III
: successful manner so that the stockhol'
:. RS would get all their money.
Much of the meeting was devoted
Questions nut to Mr. Knowles and NJ
i swcrs made by him. Stansbury J. Will
= who was one Of the examining commi
100. was one of the questioners as to Il
manner of handling loans.
Mr.. Wiley asked the shareholders
. ,ut confidence into the association:
y make extensions of withdrawal period
y IN the hope that the affairs of u
=; organization would come out all right.
!" II is said that from the assets of q
company must be deducted $4,000 wor
:" If mortgages which are only assum
NV the association to he paid upon matr
! ty Of the loans. which leaves only. q
~ .orilng to the committees report, abo
: $4,000 assets.
~, Receiver Reinhardt saws he expects
!" have report ready in three weeks,