The San Francisco call., 1905-02-01
LOAN COMPAN
INVESTIGATION
RalstOn. Introduces ResOlu-
tiOn Providing for a Com
mittee to Continue Work
EMMONS SITS IN LOBBY
Wright and French Take No
Part in Proceedings and
Bunkers Fails to Appear
EMMONS SITS IN LOBBY
Special Dispatch to The Call.

SACRAMENTO, Jan. 31.-Reaction
after the excitement of yesterday has
set in and this morning when the Sen
| ate convened it proceeded to it's work
in a subdued. transformations manner
After the prayer of the chaplain had
been concluded, Ralston to whom had
been delegated the work of preparing
resolution providing for, the continu-
ance of the investigation of the Conti-
mental Building and Loan Association
OF San Francisco, announced that he
was ready to report He was directed
to do so and filed the following reso-
luton for the consideration of his col
leagues:
Whereas. Under and by virtue of the laws
of the State Of California, generally known
sanlzed and incorporated certain corporations
commonly designated building and loan as
soclations. investment companies and security
Whereas. 1t has come to the attention of
this Legislature that there is existing in the
State of California certain of said corporations
engaged in what Is generally called building
and loan business and investment securities
which promise large returns to investors and
against which corporations there has been
made SPECIFIC charges of unfair methods OF
dealing with their stockholders and it is pub
of California that said corporations carry
ing on a business which results in detriment
to those who deal with them and do not con-
duct a legitimate business and that the cor
poration laws of the State are inefficient and
do not in specific terms define the duties and
prescribe the terms of contracts which said
corporations may make; and
Whereas, 1t is necessary and proper that
this body should be fully advised of the ma
ture and extent of the business of the corpo-
rations herein referred to in order that 1t may
properly legislate upon that subject and to
enact laws which win control the dealings of
said corporations and prescribe proper penal
ties for the violation OF such laws; and
Whereas, This Senate has in contemplation
the enactment of laws that will correct said
evils and prescribe proper penalties for the
violation of such laws and prevent the con-
summation of any injustice or wrong done to
persons who deal with such corporations;
therefore be it
Resolved. That a special committee Of five
members OF the Senate be appointed for the
purpose of investigating the methods OF any
building and loan association. investment
company, security company other corpora
tion doing business in the State OF California
authorized and empowered to meet at such
time and place as 1t may deem Mt and proper
during this session of the Legislature, and
that 1t have and is hereby given full power to
examine the safes, books, papers a:6 dOcu-
ments belonging to any such corporation, the
affairs OF which 1t may desire 70 investigate
and that 1t has full power to compel the pro-
ments by summary process upon application
therefor to any court of record or Judge there
OF in the county wherein such corporation has
its said keys books, papers and documents
That said committee be empowered to compel
the attendance of any and all witnesses resid-
port the result Of its investigation to this SEN
ate with all possible dispatch