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

/ presents problem IN accounting Wnlcf
appears to be impossible as well as i'm
practical
New Deal Desired
Z. Notwithstanding the statement o.
Mir. Muft1rer concerning the good char
acter and reputation of the old manage
-ment- and their familiarity with the
property and business of the company
our offhand opinion would be that the
shareholders would desire form of {
new deal and would expect new direc-
tors to handle the affairs of the corpor-
alton. 1t does not seem probable thai
the necessary rs per cent majority
would be forthcoming in event that the
/ present directorate or any part of il
f. remains. Choosing a board of direc-
tors, providing representation from
each state, might prove to be a salts
/ factory arrangement
8. The possibility of interesting new
capital in the form of reserve fund stock
/ IN the cornoration. with its liabilities
TO shareholders written down TO the ap-
praised value, should be investigated II
this is not possible. the affairs should
revert to mutual basis with proper re-
serves set aside to assure successful adj
ministration. Under either of the above
mentioned it is probable that a NOR
atorium of Withdrawals should be fixed,
with a provision for reasonable stock
leans.
-. 1t is suggested that definite
nlan be framed in line with the sugges-
tons of the various departments, and
that this plan be definitely incorporated
in the articles and bylaws of the re-
orpanized company, and that when so
definitely framed a meeting of the rep
resentatives of the various state de-
partments be called to pass upon the
plan. A representative from this depart
ment will attend such meeting"
The following statement was received
from Mr.. Diefendorf, Idaho commits
sioner of finance.
During the past two or three years
this department has been faced with a.
large amunt Of liquidation due to the
closing of some 10 or 20 banks in which
there was involved some 100000 and
the policy has been to conserve for the
benefit of the depositors In case a
closed institution was able to pay 100
per cent of its deposit liabilities, any
thing over and above that amount went
to the stockholders. In these times when
we are making an effort to rehabili-
tate business and readjust values. it
goes without saying that there is prac-
tically no market for any class of Sc
curities or even commodities that is sat
to an investment roadn t-s
wears prior to this date, and, therefore.
the only hope that can see is by con-
serving and revaluing for going con-
Germ.
suggest that as early as possible ) |
COMPLETE and careful appraisal be made
Of all the assets of the above mentioned |
loan and building comnany and that the |
liability to the investors also be de-
formirad. / feel quite sure that when I
this is done. YOU will find that the deter
mined denracisfion n values or losses
will be ssrh that tire reserve STOCK
haiaers will no doubt be out Of the
picture.
feel that The management Of This
nomranv should be rporpanizad and =
new board n'aoed in rharga which will
ha Representative of the Investors M /
1nuht. Come Of those who have been
hv this concern viii ha val I
fable in its orerafio- in the future.
Mutual Plan Liked
feel that mutual building and
oan association would be the best
move and would get the largest amount
or the investor over period of years.
10 liquldate this concern at this time
you'd be disastrous as do not believe
nat there is market which would
axe over the properties or mortgages
ield by this company except over
'eriod of years and the expense of re-
'eivers and attorneys would create a
rery unhappy situation for those who
lave invested their money bv the
month for number Of years The in
'estors of this company represent the
working classes and those who place
heir trust in the corporations for q
air deal and protection.
i feel that definite plan should be
ramed in line with the suggestions
rom the various departments of the
fates III which there are investors. and
his plan should be definitely incorpor-
ted in the articles Of INCORPORATION
nd bv-laws Of the reorganized COM
amy. The various departments should
e permitted to pass on the plan"