Los Angeles herald., 1906-06-28
DEFEAT OBJECT
OF STATE LOAN
MANY GUARDSMEN DISCOUNT
THEIR PAY VOUCHERS.
Los Angeles Banks Ready to Advance
$4,000 II Note Brokers Have
Not Already Gobbled
Checks

lOS Angeles DdIkS nave buDSCTlDtu
the $4,000 asked for by Adjutant Cen
eral Laucks recently as q loan to the
state, but whether the loan will actual
" be made will depend upon the result
of an inquiry that Is now being made.
Adjutant General Laucks appeared
before the members of the clearing
house about week ago and asked that
the banks Of this city advance to the
state $50, 900 for the purpose of paying
the members. of the national guard
who were on duty at San Francisco and
Oakland at the time of the big fire
there.
The Legislature at it's extra session
appropriated 100000 for this purpose.
but this money will not be available
for year, and II was hoped that ar
rangements could be made by which
the guardsmen could obtain their
money Immediately.
The main idea was to save the ma
tional guardsmen the necessity of
having their warrants discounted by
note brokers.
Made Up Srm
The members of the local clearing
house took up the subject and in the
course of a few days succeeded in
making up the required sum from
among the banks of Los Angeles.
The loan was to be made on state
warrants and, so far as this part of
the transaction was concerned, 1t was
a strictly business proposition. But
there was. of course, a natural inclina-
ton on the part Of the banks to assist
the men who had been on duty in the
north and to save them the necessity
Of submitting to a big Shave" on their
ply warrants Otherwise 1t was
simply a case of making loan to the
state on security that was considered
amply satisfactory.
The transaction had reached a point
where it was ready to be closed up,
and the loan probably would have
been made last Tuesday, when infor-
nation came to the members of the
clearing house that put the subject in
a new light and caused the negotiations
to be held in abeyance.
ii was said that several of the ma
tional guardsnen whom 1t had been
the desire to assist had already dis
counted their warrants. and conse-
,quently If the loan were made the
banks would be merely enabling the
note brokers to make a decidedly salts
factory turn" on their money.
The warrants called for the payment
of $46, and 1t Is understood that several
of these were cashed for $40. The maxi
ing of the loan now will depend upon
-the number Of these warrants that
nave Deen SndVeO.
One of the bankers who is interested
in this subject said yesterday:
The banks of Los Angeles stand
ready to make this loan to the state
on the security offered, providing the
money goes to the men whom it is in-
tended to assist but we do not pro-
pose to help lot of note brokers to
make a big profit at the expense of
these men,
$50 far as the loan itself is concerned
ii Is a plain business proposition. We
consider the security offered as ample
and have been willing to advance the
money, but the turn affairs have taken
in the last few days is not satisfac c.
tory to us.
These note brokers shaved each SAC
warrant Sc, which means that if they
are paid now they would be making
a profit of about 10 per cent on their
money in the period of a few days.
I'VE have referred the case to Cen
eral Wankowski and have asked him
to make an inquiry among the men of
his command as to the number of these
warrants that have been cashed.
This inquiry is now being made,
dressed to all the captains in the regi-
ment. Meantime it is probable the
whole subject of the loan will be held
in allegiance.
IF 1t is found that only small
proportion of the men have taken this
means of obtaining their money the
loan will be made, but If it Is found
'athat the majority of the pay warrants
are in the hands of brokers 1t is not
likely that any money will be advanced
to the state for this purpose"