Los Angeles herald., 1910-04-20
ORGANIZERS Of
LOAN co. SOUGHT
Stockholders in Unit Concern
Look for Officers and
Funds Invested
AFFAIRS BADLY MUDDLED
Secretary EvadeS Answering
Questions by Fleeing Down
Fire Escape, Is Alleged
AFFAIRS BADLY MUDDLED

crowd of anxious and solicitous
stockholders and directors of the Unit
loan company assembled in front of
the company's place of business at 106
South Broadway yesterday morning,
when 1t was alleged that the company IS
president, Loefus T. Sherer, and the
secretary and treasurer, Percy Patrick,
were missing.
Those who gathered in front of the
office, which appeared to small invest
ors as one which was doing a -four
ishing business, foud the doors locked
and the affairs of the company in the
hands of creditors. Barker Brothers
Furniture company, which sold the
company furniture on the installment
plan, arrived at the office early In the
morning and took possession of the
furniture.
The company was organized January
10, this year, by Sherer. Patrick, his
nephew, and A. S. Randolph, his SON
in-law, who capitalized 1t at $50,0OO at
s100 a share. Sherer took 100 shares
and Patrick and Randolph 25 shares
each. Randolph is said to be travelling
In Australia at the present time as a
'handcuff king"
II IA said those who invested in the
complny were unacquainted with bus
mess affairs and the methods of con-
ducting a business. AS a result they
purchased lots throughout the city
which would not justify any profits
being made from them.
THE companys business was started
on the plan of dividing first mortgages
on cal estate and selling them in units
of $40 each. Twelve houses were
g Nhnf n Tn "a N q
con pleted.
Ftaring that the funds of their com
parry were being misappropriated. the
stockholders made several demands on
Patrick. the secretary, for an account
ing, which was each time refused.
Patrick was called before the stock
holders recently and asked number
of pertinent questions relative TO tne
status Of the financial condition OF the
company. which II is said he could not
answer. Going upstairs on a pretext
of some nature, 1t is alleged, he
climbed through a window leading To
the roof and climbed down the fire
escape to the ground. 1t Is believed
he met Sherer. who 1t Is said mas Deen
missing since Saturday, at some down
town hotel and that both OF them ned
fearing an exposure of their business
affairs. -,
stockholders who had charge of the
building operations, assumed charge OF
the office yesterday morning. Later ne
consulted with Deputy District Attor'
new Mccartney with regard to a war
rafn being issued for the arrest OF
Sherer and Patrick in connection witr
the disappearance of the companys as
sets and non-payments of bills.
Contractors, employees and NUMBER
of stockholders Of the company yes
terday declared that they were owed
Sums of money ranging from $25 ur
to several hundred dollars for WORK
which they have done and which they
have paid to the company.
The matter was taken to George
n Reebe. assistant attorney general for
the state of California. late yesterday
afternoon. but was referred by him to
4, B. Transhue, resident MEMBER VI
ha state building and loan commits
sion. who will make an investigation
of the company's affairs.