The Western news. [volume] (Libby, Mont.) 1933-current, 1933-09-07

ISSueSLetter
To Investors
Tells of Plans in Mind
for Reorganization of
Corporation.
INVESTMENTS BACKED
BY GOOD SECURITIES


BY GOOD SECURITIES
The Western Loan and Building
company Of Salt Lake City has mailed
a circular letter to all stockholders dat
ed August "a, setting forth the plans Of
the company. The Utah bank commits
sioner and others in charge of the
company storngly favor some form of
reorganization instead of liquidation ION
present frenzied markets" The letter
further says, "Your investments in this
company Is substantially backed by
real estate and mortgage securities
which, except for taxes are first lien
on the real etsate. The letter follows.
To The Investors OF The Western Loan
q Building Company:
The bank commissioner Of the state
of Utah took charge Of this company,
August Is, 1888. This action was de-
termined only after a thorough exami-
nation into the affairs of the company
in which the examiners of the states
of Utah, Montana, Wyoming, and Cal
ifornia participated. The report of ex-
animation was reviewed In detail by
the commissioners of the several west
ern states in a conference at which it
was requested that the state bank COM
missioner take charge This action was
acceded to by resolution of the board
of directors of the company.
1t was agreed by the commissioners
Of the several states that the commits
sioner of Utah impound all the assets
OF the company wherever found and
regardless of state lines and that the
whole operation be in the nature Of
a conservatorship rather than with any
thought of liquidation on present fren-
zied markets. It was the consensus of
the meeting of the commissioners that
no investor in any state be preferred
over an investor in any other state.
The purpose Of the action taken will
be to reduce overhead expenses; to
prevent Withdrawals Of payments and
claimed profits; to preserve all assets,
and to work out reorganization il
possible so that the company may 60 on
mutual hasis-owned and controlled
exclusively by the investors and man.
aged by directors selected by them. A
complete audit Is in process and APP
praisals are being made of every asset.
In the meantime, an efficient organ
ization will be maintained to take care
of properties, collections, rentals, etc.
BY enforcing a strict collection policy,
substantial earnings will continue to
accumulate and will offset many losses
from depreciation
There will be no preference of in
vestors in one state over those in an
other. Wherever the assets are located
they will be equally available to invest
ors. 1t will be unnecessary and a useless
loss and expense for any investor or
group of investors to incur attorneys
fees, court costs, or individual expense,
as the interest of each will be as fully
protected without any such burden. The
building and loan officials of your own
state can advise you of these matters
without cost
You are cautioned about assigning,
trading, or discounting to brokers at
low prices your investment certificates
Your investment in this company is
substantially backed by real estate and
mortgage securities which, except for
taxes, are first lien on the real estate.
Pending the efforts Of reorganization
and under changing conditions, it is
impossible at this time to state to you
with any assurance the value of your
holdings IN the company, otherwise
than indicated above. 1t is the hope of
this department that investors will at
least realize the amounts paid in on
their investments. Any improvement IN
real estate market conditions will, Of
course, result in further benefit to in
vestors.
Investment agreements Of every ma
ture with the company are in suspen-
sion while the Department is In control
and you are not required during this
time to make further payments on your
investment No forfeitures will result
from your failure to make payments as
required by your investment agree
ments. All payments received on in
vestnent accounts after August II, 1888,
will be set up in separate account
and held intact pending reorganization,
and will be held subject to the order
of the investor RENTING the same.
Investors are assured that the inter
ests of all viii be fully protected by
the Utah Commissioner in control and
acting with the advice and counsel of
the building and loan officials of all
the eight western states in which in
vestors reside.
There are approximately "a 900 in
vestors. Frequent letters or reports
would involve needless expense. How
ever, such information as is necessary
to advise you or for your guidance
will be furnished
Your cooperation and any advice you
may care to offer will be appreciated.
Very truly yours,
JOHN A. MALTA,
Bank Commissioner for the State Of
Utah.