The Western news. [volume] (Libby, Mont.) 1933-current, 1934-03-29
Loan Company
Reorganization
Accomplished
New Directors Meet and
Plan to Take Over Man
agement of Corporation.
OVER rs PER CENT
AGREE TO PLAN

1He many LIBBY StOcKnOl0erS and in
vestors in the Western Loan and Build
ing company of Salt Lake City will
be interested in the following account
of the reorganization Of the company
published in a recent issue of the Great
Falls Tribune:
SALT LAKE CITY, March %
Reorganization of the SIS, OO0, 600 West
ern Loan and Building company which
operates In California, Idaho, Nevada,
Oregon, Montana, Washington, Wyom-
ing and Utah became reality tonight.
| J. w. Jones of Salt Lake City, ex-
aminer in charge of the company's con-
servatorship under John A. Malta,
Utah state bank commissioner, an
nounced receipt of the required writ
ten approval of the reorganization plans
from IS per cent of the 5000 investors.
Plans for resumption of operations,
he said, up until late tonight had the
Endorsement in writing of 75.43 per cent
of the stockholders.
The plans were drafted and tenta-
| lively approved when stockholders met
here last Dec. Is and elected board
of II directors.
Only legal formalities remain, Jones
states, before affairs of the organiza-
ton will be turned over to the stock
holders.
| Up until tonight IS per cent of the
stockholders who are residents Of Mon
tana had approved of the plans in writ
ing; Utah was second with rs per cent.
Wyoming third with "a; Oregon fourth
with "a; California. So; Washington, So;
Nevada So, and others approximately
60 per cent
The banking department has had
charge of the company since last
August.
Directors of the reorRanized com
pany, who will hold their first meet
ing Monday in Salt Lake City, are.
Utah, G. J. Sumner of Richfield, and
Or. T. G. Montgomery OF Heber City:
California, G. H. Cannon OF Los An
geles and Fl D. Scudder Of SebastopoI,
Sonoma county; Montana, r. y. Tobin
Of Helena and Oshey Devine Of Great
Falls; Wyoming, DR.. J. Oliver Cham
bers of Rock Springs; Idaho, DR.. T.. E.
Shaw of Pocatello; Nevada. H. r.
Holmes of Reno: Oregon, A. A. Smith
of Baker, and Washington, j. B. Harsh
ner of Aberdeen.
HELENA, March 23.-The plan for
reorganization of the Western Loan
and Building company of Salt Lake
City, State Superintendent of Banks
Frank H Johnson said he was advised
late today, has been approved by stock
holders.
Stockholders approval, he said, ex-
ceeds the rs per cent required by Utah
law in order to effect the reorganiza-
ton
More than 1000 Montanans have APP
proxlmately six million dollars invested
in the firm. Those assisting here with
the reorganization said the investment
of Helena residents alone exceeds
million dollars
The plan, the superintendent ex-
planned should permit all the stock
holders to get a new full paid certifi-
cate Tor 10 per cent of their claims,
which will draw interest at per cent.
payable semiannuallv The 30 per cent
Wodid tS laSdFd HI dGlGilG u
to be paid after the 10 per cent is
liouidated.
Johnson and r, NJ. Bailey. an assist
ant of the superintendent, have taken
leading parts in the REORGANIZATION plan
and efforts to prevent the firms going
into receivl-shiu. They contended re-
ownership would have cost large por-
tion Of the holdings OF. the company.
There are several suits in the United
States courts in Utah and California
which have been held in allegiance,
Johnson said, pending DEVELOPMENTS in
the move to reoreanize. ut is pre-
sumed." he added that the cases will
now be dismissed by the courts
The plan does not contemplate IAN
immediate payment beyond the interest
and it will take several years OF liquid
alton and reimbursement before the funds
will be available" he said "A sugges-
ton has been put forward for the re-
organized company to get an advance
from the Reconstruction Finance cor
poration Of substantial amount so as
to make advances to those in need Of
funds.
THE entire plan has been construc-
tive and the directors chosen at the re~
organization meeting In Salt Lake City
should be a great assistance in giving
honest liquidation and protection to the
Montana stockholders interested.
There have been many obstacles in
the way but they have all been over
come by the loyalty of@the stockholders
toward plan which would protect
them without the tremendous loss in
receivership.
THE stockholders during the past
week have been receiving statements
from the Salt Lake City office to veri-
fly the amounts that are due them so
that the new certificates could be is
sued promptly when the rs per cent
approval plan was completed