The Western news. [volume] (Libby, Mont.) 1933-current, 1933-09-28

building and loan departments of tn,
various states have also agreed tina
plans for reorganization must origi
nate in Utah and must conform to re.
quirements of the Utah building ant
loan law, Mr.. hfuffiner announced.
In addition to Commissioner Malta
Mr.. Mulliner, Examiner Bailey, w. w
Ray and Paul H. Ray, the meeting wa
attended by Richard O. Pearce, Sal
Lake attorney, representing a group
of Davis county stockholders; Charlie!
B. Osgood, chief appraiser of the Cal
ifornia building and loan department
Mark H. Greene, chairman, and c. j
Summer, Richfield. members of the tenn
porary stockholders committee, ane
Richard w Madsen, V. r. Madsen anc
James Ingebretsen, representing direc-
tors of the company.
Oregon States Stand
Mr.. Mulliner presented the written
i reactions Of the Oregon and Idaho COM
missioners to the suggested plan oil
reorganization submitted September q
and announced that statements would
be received during the week from the
commissioners of California, Montana,
Wyoming, Nevada and Washington.
! The following joint statement was
received from Judge Carey, Oregon
corporation commissioner, and Mr..
Peterson, Oregon building and loan
supervisor:
During the past two and one-half
years this department has been faced
with the problem of liquidating nine
savings and loan associations in this
state, and the result has been very un-
satisfactory. If at all possible, ii is our
desire to avoid this long drawn-out
procedure in the case of the Western
Loan & Building company. We believe
that form of reorganization should be
outlined Immediately. Delay tends to
decrease the possibility of a successful
plan. We will heartily approve of any
plan OF reorganization which meets the
requirements of the various states in
which this corporation has transacted
business and which will give to the
shareholder the best possible plan. /
Appraisal Asked
i. 1t is suggested that a complete ap-
praisal be at once made of all the assets
OF this corporation, SO that true val
uatlon of The assets can be reflected.
This appraisal should be upon uniform
standards III the several states, and in
clude detailed study of every asset,
the earning power of the institution and
the cash income possibilities over q |
period of time. 1t is essential that this
work should be carried to compile
ton in the shortest possible time and
at the lowest possible cost
z 1t appears from what has gone
before that all concerned are of the
opinion that the impairment to the cap
ltal is III excess of the reserve fund
stock holdings and the reserves now
set up on the books Of the organization.
Steps should be taken to wipe out this
reserve fund or permanent stock, |
charging known losses against it.
8. a reorganization plan should be
based upon the expectation of q con-
tinuation as a going concern, as it is +
quite questionable whether liquidation
can be delegated by the statutory re-
ceivers to a concern formed to trans
act this business. Reorganization on
going concern basis seems to present
the greatest possibility of beneficial re-
turns to the shareholders. In the event
OF reorganization for liquidation pur-
poses, it is possible that the whole af-
tair would wind up in an unsatisfactory
with excessive amounts
paid in salaries and attorneys fees, and
such plan would be questionable from
legal standpoint.
Objections Cited
4 reorganization on going con-
Germ basis would permit transactions
which cannot be performed under Ii
quotation Trades, readjustments and
could then be made both in
with properties and mort
cages, and the stockholders credits 1t
S certainly true that the experience of
The Oregon officials has been one which
mas taught that a better workout of the
assets can be effected by officials in
going concern than those in an as
ISOLATION being liquidated.
D. In the event of reorganization
he proper procedure In handling new !;
monies should be outlined. It is nee
,ssary that these funds be given proper
and consideration.
.. The plan presented by the d.
'ectors of the institution and the share
holders committee does not seem |
workable as to the form Of certificates
hat are to be issued. The SO per cent
10 per cent basis has been presented as j
N example and also a suggestion has
been made that the reserve or per-
nanent stockholders should be given /
ONE kind of certificate emitting them |
Q participate proportionately in anv
mount OF the 40 per cent fund remain
ng after the investors are paid out $
w per cent II is impossible to conceive
any when the shareholders will be ,
'aid out in full 1t must be remembered :