In accordance with an Act of the Legislature, approved April 5, 1911, to 12-18-1923 REPORT OF THE BUREAU OF BUILDING AND LOAN SUPERVISION. OFFICE OF THE BUILDING AND LOAN COMMISSIONER, SAN FRANCISco, September 1, 1923. To His Excellency, FRIEND WM. RICHARDSON, Governor of California, SACRAMENTO, CALIFORNIA. SIR: Pursuant to the requirements of section 5 of the "Building and Loan Commission Act" the thirtieth annual report, covering the activities of this department for the seventy-fourth fiscal year of the state, ended June 30, 1923, is respectfully submitted for your consideration. The tabulations and calculations presented are compiled from the last received reports of 115 associations, all but seven of which had been in active operation for more than twelve months, as of the close of the fiscal year. Aside from those represented by the tabulations, there are 15 other associations, mostly licensed for less than six months, the status of which, as of June 30, is not included in the calculations because of the short period of their operation, thus making an aggregate of 130 active domestic associations. The figures presented herein are indicative of a more general appreciation of the benefits of a financial system that appeals to, and should stand closer to the common people-the wage earner and the salaried employee-than any other class of financial institution yet devised. It does not foster trusts, combinations or speculative schemes; its field of operations is local; its results beneficial; its mission the accumulation of the savings of the thrifty plain people; the enrichment of the community; the fostering of that most valuable asset of the nation, the "American Home" that makes for contentment, public spirit and peaceful lives in every community. The building and loan plan of investment addresses itself particularly to those in need of encouragement and self-help; it encourages savings, thrift and persistent effort, which are the foundation of success in any and every calling, and these and home ownership go hand in hand. The accumulation of the savings of the shareholders and investors, during the period just closed, has resulted in an increase in the assets of the associations of $20,537,698.65, and the reported making of 7291 loans for new construction, mostly for new homes, bringing the aggregate reported construction, since the organization of this department, to 67,529 separate buildings, which, if all were grouped in one locality, would embrace a city of very respectable proportions. During the past fiscal year twenty-two new associations were licensed, and one small association, in a northern county liquidated voluntarily because of lack of proper support in a limited field of operation, thus making a net gain of 21 and increasing the number on the active roll from 109 to 130, or a gain of 19.26 per cent. The names, locations and dates of licensing are shown under the heading of "Domestic Associations." Two other new associations have already been licensed since the close of the seventy-fourth fiscal year. Of the 115 associations, the reports of which are embraced in the tabulations, 56 have a paid-in guarantee capital and 59 operate on the mutual plan. Forty-three associations, mostly mutuals, continue the use of the "serial plan" in dealing with their installment shares, while all others use the permanent or "Dayton" plan for both installment shares and investment certificates. The wonderful increase in the assets during the past year, as compared with previous years, is best visualized by consulting the title "Changes in Assets since 1910," where it will be observed that the increase of $20,537,698.65 is more than double the increase in any previous year, and brings the tabulated assets up to $85,270,458.70, and if to this are added the present assets of the 13 new associations in operation less than six months and not included in the tabulations amounting to $1,010,313.12, together with the California assets of the "Western Loan and Building Company" of Salt Lake City, Utah, $2,101,450.19, we have an aggregate of $88,382,222.01 as the gross assets of the state. The following schedule shows the distribution of the tabulated assets of the 26 counties in which the 115 associations are located, and the number reporting from each county: From the foregoing it will be noticed that the number of counties represented by the tabulations remains the same as at the date of last report, one county, Lassen, being eliminated by the liquidation above referred to, and one, Stanislaus, added to those reporting. Notwithstanding the fact that 22 new associations have been formed and licensed during the past year, only one is really located north of the latitude of the San Francisco Bay District, even though there are many localities of importance in the northern part of the state that would be materially benefitted, if local enterprising and public spirited residents could be induced to take an active interest in the formation and conduct of live associations in their respective localities. The "reserve and undivided profits" shows an increase of $149,842.31 raising this factor to $2,089,602.89, which with the "guarantee capital and its surplus reserve" of $4,750,361.92 provides a protection to the installment and full-paid shareholders and to the investment certificate holders equal to 10.4 per cent of the investment liability to those particular classes, a gain of one per cent in excess of the percentage for 1922. The real estate held by 39 associations represents 134 separate pieces, with a book value of $740,373.21, or 0.868 per cent of the gross assets, an increase of $101,391.79, of which $348,515.00 is represented by the office buildings, and lots on which to build, owned by 13 separate associations. Regarding the question of the acquisition of office buildings, the policy now is not to permit a mutual association to invest in such beyond the amount of its accumulated reserve, nor a guarantee capital association beyond the amount of its paid in guarantee capital and surplus reserve. The percentages of increase in each of twenty different features of the operations for the past year is represented by the following schedule: The receipts from shareholders and investors total $37,610,512.69 or 44.10 per cent of the tabulated gross assets, and the disbursements on account withdrawals and maturities aggregate $24,826,272.35, of which $3,587,124.49 was on account of dividends and profits apportioned, and the balance invested capital refunded-in all the equivalent of 46.50 per cent of the gross liability to shareholders and investors at the beginning of the year. Fifteen different loaning rates were reported as being in use during the year, varying from 6 to 12 per cent, depending largely on locality, security and funds available for loaning purposes, the mean average of all of which is 8.360 per cent. |