Waterbury evening Democrat., 1906-01-04
GOOD REPORT State Building and Loan
 Commissioner. MORRIS (. WEBSTER
The Cooperative Saving Society and Loan and Realty Com pany Assets Make Good
 Reading.


 Hartford. Jan An accordane' U n,;th custom Morris c. Webster, slats building and loan commlssioiier, ~ day presented his annual report :. .e Governor Henry Roberts. lie say III part as follows: .;o Say,
 ..Tbe affairs of the Cooperative SaN' ings society and the Connecticut hoal S Realtv Co reached their crltica no;n+ durina the year. and demanded the application of the most vigorous remedy. and while the situation Ill lne two companies was quite dli1ereht tbev were so much alike as to demanu in each case about the same treat ment. Until just about one year aso thev were both making settlements with their shareholders promptly OH terms which. while they were dlsap, nointing. were nevertheless as nDerai as their financial standing seemed to warrant. and it was my earnest desire and expectation that these settlements might continue, and reimburse the Ill., yestors and assist the borrowers ID about the same proportion until the end: but the fact became apparent that the assets were being overvalued to A great degree, and that the longer the delay, the greater would be the loss to the shareholders.
 After weeks of labOrious effort ny Attorney General King and myself we succeeded in getting the directors of the Cooperative society to see the condition of affairs. and to unite with us in asking for the appointment or a receiver for the company. It is but justice to these directors to say that when they understood the existing conditions they were, for the most part, anxious to put the assets Into the hands where the most could be se- cured for the shareholders, and the ap- pointment of Judge Marcus H. Hol- comb as receiver will secure to them the largest possible return upon their interests. The losses of this company had not at all been made in one year, lon the contrary, the earnings during the last year of its existence were over fifty thousand (S50OOO dollars, but had not been the result of mis- management during the entire years of Its existence. In excessive expense fund deductions, in contracting for its promotion first, and by issuing ex- pense fund stock later to buy up the contract. These things having been done and being carried along brought their legitimate fruit of loss, which will fall most heavily upon the classes R and 'G' stock-the former being the expense fund stock, issued to re- tire certain contracts, and the latter the guaranteeing stock, each class be- ing written without any withdrawal privileges, until all of the other class es should have been paid in full. Had these two classes of shares remained in the hands of those to whom they were issued, the holders would not he entitled to much sympathy but, un- fortunately, they were for the greater part sold to disinterested and innocent people who failed to understand the terms of their contract.
 At the present time the receiver has on hand almost three hundred thousand fs3OO.0OO dollars. and there is reasonable prospect to expect a return to shareholders of seventy five tI5l per cent of the actual value of their shares, at an early date.
 Tn the Connecticut Loan & Realty Co the situation was somewhat differ ent. and proceedings were begun be- cause of the mismanagement of lis af- fairs and the misrepresentation of it's assets. and after the fullest possible hearing in court 1t seemed advisable to entrust the affairs of the company Tor liquidation and settlement to a chosen board of directors. satisfactorr To the judge. attorney general and my self. These being duly selected and ,hosen by the stockholders at A meet ng called for that purpose. proceeded ,o an investigation and the develop nent of a plan for closing up the af- 'airs of the company. which Is now leing carried out by them. and the ul- innate result will he of advan,arr ,o he shareholders. in that it will TO. urn to them their full share of tba
 FA "N-EArs te~~ eNTlGT1Gfs
 Tt seems as if the assets treate,I in his way would produce a much Iarge- mount of cash than if sold under tha 'riers of the court by a rsreiver. The nan as devised by the selected t-oari 'f directors had the sanction or Tho A. and ID. D- shareholders. r,-ov;d. d the sanction of S5 Der cent os aII 'ther classes of shareholders couId l.a 'ntaine,i. they waiving all rights tf,ev night have in the assets for a r..ria., r Tour years In which these S.at,tc- nents should be madp. and they we-. hen tO have whatever might remain Aiter careful consideration of tha .D. lre situation. the attorney general hpmittei the proposition to inc e,,urr u.lGe K"raback approved it and ro,. in'ieh the esse. tS give ample i'm. fc- morning all of the interested r,ar-sas id u was acceptei by tic rs-1uS.S,e ortioH of shareholders.
 Ihe assets of these sss,rf..;o. - the year show a whoI4sar5. 5. resse amounting to sIIsTSs r-s .lthsianiing the facf thzf tboT- ss-s.t 2 and paid out during the ss,.s =. .'d s25l.51I42 fn ezsh emons ,,les. ? 1 rr-fnnAffw-S F-rS~ - e7AA E