The times., 1901-04-10


The Washington office Of the Crown
Savings and Loan Association. of Balu-
more. Is closed. and number Of people
here who invested" in the concern are
anxious for settlement Instead of
receiving $40 for the use Of S26 for a few
weeks it is probable that they will have
to be content with $40. They expected
more than so per cent for their invest
ment, but as yet have not, it is claimed,
even had their principal returned.
The Crown Savings and Loan Asso-
citation was organized for business lit
tie more than six months ago. 1t has
an authorized" capital Of 100000. It's
central office is in Baltimore, at the cor
ner Of Howard and Franklin Streets,
and there were branches in this city
and in Georgia, Michigan, Arkansas,
and other States. It's Washington Office
was in the Jenifer building, corner Of
Seventh and d Streets. 1t circulated
an immense amount of literature when
it was started, telling Of its
plan TO make money rapidly for its in
vestors. It's booklets were written in
manner which proved to be most at
tractive TO the get rich quick ele-
ment in Washington's population, and
it is said that nearly 300 people entered
contracts with it to put up their money.
The association is supposed to have
investments in real estate, and 10 do
business Of lending money on ''collater-
al" al high rates Of interest. In addi-
ton it promised its investors that
large part of them would fail to keep up
with their contracts, which, it said,
would be an excellent thing for those
who persevered to the end. It's loans
and the lapses Of contracts it promised
its subscribers would make money so
fast that it could pay a fabulous
amount of interest on their invest
ments.
The contract which the local sub
scribers signed, it IS said by some law
yers that have examined it care
fully, may be construed in three or.
four different ways. The construction
put upon it by local subscribers was
that they were to pay 81 per week for
tUenty-six weeks for which they were
t. receive $40 in cash at the end of the
half year The local agents of the as
sociation. it is claimed. led subscribers
to believe that this was the meaning Of
the contract. and that they would ac-
tually and without any question receive
the $40 for the SIG.
Tie first series" of contracts ma
tured a week ago on Monday The sec
mi.
Investments Of the association are
stated by it in letters to subscribers to
have been most disastrous, and its mis-
fortunes and bad LUCK quite surprising.
The number Of people that have lapsed
in their payments is lamentably small
For this reason the payments on con
tracts. the letter explains, have been
only $50 although $2S has been obtained
from subscribers. instead of the SIS
originally asked for. The closing of the
Washington offices of the association
leads subscribers to later series" OF
contracts 10 fear that they may not get
anything whatever for their invest
ments- The payments were made from
The local Office last week, and imme-
diately after it closed its doors and has
not been open since.
A. FAR as can be learned there were
about $50 subscribers TO the association
in this city. OF these it is understood
that about 260 continued to make their
weekly payments regularly during the
entire Jwenty-six weeks which the con-
tracts were supposed to run, and for an
additional two weeks. which the asso-
citation required before it would make
eny settlement There were not more
than twenty subscribers that Iapsed in
their payments, and for this reason lost
tho money they had invested. ranging
from a few dollars to nearly the full
amount involved. $26
The following circular letter was re-
ceiled by the local subscribers to the
association on March 30. Immediately
prior 10 the date on which the first dis
tributien of cash was due:
baltimore. Md. March 90. 1861.
Dear Sir At special meeting of the
board of directors Of the Crown Savings
., Loan Association, held Friday evening.
March -. to take action uDon the re-
demptipn Of the first coupon on AN CON
tracts dated September q. 1870. il was
unanimously decided that we redeem am
o
ing manner: twenty dollars 10 be paid
Ia cash. and Sl0 to be credited on one of
our new contracts which viii be issued
t. Eou upon the surrender of your pres
rIl contract.
This action IS taken in accordance with
the clause in the contract which reads
that the association shall pay q sum not
exceeding $40. Your new contract viii be
dated April !, TO run for tWenty-eight
weeks only, the payment on same to be
Sl.-5 per week
Ne regret very much that we cannot
redeem the ola contracts for larger
amount, and that We are obliged To take
this action. but. in view Of the reverses of
-ru8 are doubtless aware we find II i'm
possible TO do better.
The funds II the association have been
handled with the utmost care none of
ofr officers or directors having received
amy compensation since January J. and
fHHSmucE as We cannot redeem these
contracts for an amount larger than $50
without carrying some OF them 10 the sec
ora redemption period, we decided TO
tr'-at All alike, and 50 adopted the plan
e Nplaiued above.
- YOU desire any further information.
or wish To make an investigation the
books OF the association are open for
your inspection. You will please present
your contract for redemption In the order
above named. There will be no further
payment fxacted upon your contract
HicH Is dated September a Yours truly
JOHN 9. WEISS, Secretary.
Il is understood that few If any local
subscribers have taken advantage Of
Jhe offer Of the association to continue
IN the concern with a credit of $40 on
second contract. The fear is expressed
that the reverses Of the company dur
ing the continuance Of this second con
g