Much of the work of this Commission has been done in an advisory way. For example, in the matter of bookkeeping: While it has been generally conceded that a uniform system of accounts would be desirable, the Commission has no authority to compel any Secretary to adopt a prescribed method; nor has any such attempt been made. But, in our preceding report we outlined a system which we deemed the simplest and most satisfactory, as well as one leading up to the reports required by the Commission. We are glad to say that our suggestions in this regard have been quite generally accepted. In many instances the Commissioners have given their personal attention to the work of transforming old and faulty systems, or of opening a new set of books on the approved plan. The result of this work is very apparent when it comes to succeeding examinations. Not only is the Secretary saved much time and labor in keeping his books, but his trouble in making out reports is minimized, and the work of examination is greatly facilitated. In like manner, the Commission took up the vexed subject of apportionment of profits, which was discussed at considerable length in our former report. As a result of that investigation, we recommended the adoption of the Dexter Rule as the most equitable, and one that would mature an older series in from two to eight months earlier than any other system in vogue. It gives us pleasure to state that our recommendations in this respect have been adopted in a number of instances. The present report shows that 69 associations are using the Dexter plan of apportionment-an increase of 20 by this method since our preceding report. We have followed the plan of making our regular examinations shortly after the close of the fiscal year of each association, as the books are then closed up to a definite time, and results of the business are calculated. This, while most satisfactory to all concerned, necessitates much traveling, it being necessary to visit some cities four or five times in the course of the year. DETAILED STATEMENT OF RECEIPTS ON ACCOUNT OF THE REGULAR ASSESSMENT FOR TWELVE MONTHS ENDING DECEMBER 31, 1895. Santa Fe Building and Loan Association-San Bernardino.. 9 27 12.04 45 82 Home Mutual Building and Loan Association-San Francisco 60 72 Inter Nos Building and Loan Association-San Francisco.. 46 28 3 10 53 19 Imperial Savings and Loan Association-Los Angeles.. 9 76 Mutual Building and Loan Association of San José and College Park. 28 27 Golden Rule Mutual Building and Loan Association-San Francisco 28 29 38 00 DETAILED STATEMENT OF RECEIPTS-Continued. Name of Association. Commonwealth Mutual Building and Loan Association-San Francisco... Franklin Savings, Building, and Loan Association-San Francisco. Acme Building and Loan Association-San Francisco. Nucleus Building and Loan Association-San José. Modesto Building and Loan Association San José Building and Loan Association Savings Fund Building Society-Los Angeles Southern California Loan Association-Los Angeles Encinal Building and Loan Association-Alameda. The Equitable Building and Loan Association-San Francisco. People's Mutual Building and Loan Association-Ontario. Prudence Building and Loan Association-San Francisco.. City Building and Loan Association-San Francisco The Golden Gate Mutual Building and Loan Association-San Francisco... Woodland Building and Loan Association.. Santa Clara Building and Loan Association. Fortuna Building and Loan Association.. Golden West Building and Loan Association-San Francisco.. Fidelity Savings and Loan Association-Los Angeles Santa Rosa Building and Loan Association.. Benicia Building and Loan Association.. Mutual Building and Loan Association of Pasadena Los Gatos Building and Loan Association Eintracht Spar und Bau Verein-San Francisco. Merced Building and Loan Association.. Cosmos Loan Association-San Francisco. San Joaquin Valley Building and Loan Association-Stockton. Merchants Loan Association-San Francisco Amount of Assessment. $13 78 35 77 41 95 16 75 16 09 27 94 34 21 109 79 28 19 68 15 49.66 41 71 11 04 30 87 28 84 22 81 13 23 24 37 30 01 2.95 9 48 22 19 11 38 8 64 80 56 5 69 40 14 12 61 14 01 48 46 35 87 25 46 Yerba Buena Mutual Building and Loan Association-San Francisco. 34 54 Capital Building and Loan Association-San Francisco. Pacific Loan Association-San Francisco .Western Loan Association-San Francisco.. Argonaut Mutual Building and Loan Association-San Francisco 31 38 34 47 2 54 107 83 Monarch Mutual Building and Loan Association-San Francisco.. California Mutual Savings Fund and Building Association-San Francisco.. 18 18 California Mutual Building and Loan Association-Los Angeles.. 15 37 The Home Investment Building and Loan Association-Los Angeles.. 29 60 Silver Gate Mutual Building and Loan Association-San Diego.. DETAILED STATEMENT OF RECEIPTS-Continued. Name of Association. Commercial Building and Loan Association-San Francisco. Home Security Building and Loan Association-Oakland.. Columbia Building and Loan Association-San Francisco. Amount of $38 71 12 60 71 53 62 87 63 36 103 61 11 15 35 65 24 77 30 38 34 68 96 42 34 57 45 65 Pacific States Building and Loan Association-San Francisco.. Mutual Savings Fund, Building, and Loan Association-San Francisco.. Union Mutual Building and Loan Association-Los Angeles. 107 87 44 77 National Building and Loan Association-Los Angeles. Brooklyn Investment and Loan Association-East Oakland Mutual Building and Loan Association of Pomona.. Marin County Mutual Building and Loan Association-San Rafael. The Loan and Building Association of Santa Barbara San Diego Savings and Loan Association Etna Building and Loan Association-San Francisco Cosmopolitan Mutual Building and Loan Association-East Oakland. 5 90 22 27 35 36 66 20 87 49 37 95 30 05 94 96 50 13 32 43 9 01 41 58 32 84 Visalia Building and Loan Association.. People's Mutual Building and Loan Association-Bakersfield. 9 83 25 08 47 05 16 46 10 03 23 30 13 37 3 03 5 86 $6,033 87 In addition to the above, a special assessment was levied, as of April 1, 1895, to cover the additional expenses allowed by legislation of 1895 for the nine months from April 1 to December 31, 1895. This assessment was not collected during the fiscal year herein considered, but will be specified in our next report. Balance serviceable for expenses from June 1st to December 31, 1895 ..... $4,436 33 LEGISLATION. In March, 1895, the Legislature passed "An Act to amend an Act. entitled 'An Act creating a Board of Commissioners of the Building and Loan Associations, and prescribing their duties and powers, approved March 23, 1893."" This amendment was duly approved by the Governor, March 26, 1895, and became immediately operative. The principal features of this amendment consist in authorizing the employment ́of a Secretary by this Commission, at a salary not to exceed $1,200 per annum; an increase of the allowance for office expenses to $400 per annum, and an increase for traveling expenses for the Commissioners and Secretary to $700 per annum. The Secretary is required to execute a bond in the sum of $2,000, and take the prescribed oath of office. The Commissioners are given authority to order a re-valuation of the securities of any Building and Loan Association, and may, for the purpose, appoint local appraisers at the expense of such association; the total expense of such appraisement not to exceed $2 50 for each property examined and appraised. To meet the expenses of the Commission, it is provided that an assessment be levied on the Building and Loan Associations of the State, based on the shares outstanding December 31st of each year; provided, that no association shall pay less than $10 per annum; and all associations hereafter organized shall pay to the Commissioners for their business not less than $1 per month for the term expiring December 31st succeeding, dating from the time of application for license. The amended law brings under the supervision of the Commission all corporations, societies, or organizations, investment companies or associations, whether organized in this State or represented by agents, doing a savings and loan or investment business, and which are not under the direct supervision of the Bank Commissioners or the Insurance Commissioner. This law, as well as others affecting Building and Loan Associations, will be found quoted in full as an appendix to this report. The amendments above cited greatly increase the efficiency of the Commission. Under the law as it formerly existed it was necessary for one Commissioner to remain constantly in San Francisco in charge of the office, which was required to be kept open during banking hours. While this provision still holds as regards the office, it is now possible for both Commissioners, or for one Commissioner and the Secretary, to travel about the State and make examinations, either separately or together. Under the provisions of the above law we appointed as our Secretary Mr. James L. Fields, an expert in building and loan work. 1927 GROWTH OF BUILDING AND LOAN ASSOCIATIONS. The development in California of this system of coöperative investment is shown by the following table, which gives the number of associations for each successive year from the earliest date: New associations incorporated during the past fiscal year, which have not completed a year's business at the date of this report, and are therefore not represented by statements herein, are as follows: California Home Building Loan Company, San Francisco; J. F. Mayer, Secretary; incorporated July 8, 1889. Pleasanton Mutual Building and Loan Association, Pleasanton; E. L. Benedict, Secretary; incorporated March 1, 1895. People's Mutual Building and Loan Association, Los Angeles; M. K. Young, Secretary; incorporated April 15, 1895. Metropolis Mutual Building and Loan Association, San Francisco; E. W. Levy, Secretary; incorporated April 25, 1895. Fraternal Mutual Building and Loan Association, Los Angeles; Herbert J. Goudge, Secretary; incorporated April 17, 1895. Sun Mutual Building and Loan Association, San Francisco; I. C. Joseph, Secretary; incorporated August 1, 1894. Healdsburg Mutual Building and Loan Association, Healdsburg; incorporated December 31, 1894. Progress Mutual Loan Association, San Francisco; D. Hirschfeld, Secretary; incorporated December 31, 1894. Mechanics Savings Mutual Building and Loan Association, Los Angeles; incorporated July 20, 1895. During the past fiscal year the Republic Building and Loan Association (National), of San Francisco, has liquidated and closed its business. The Santa Ana Building and Loan Association (Local), which was reported as liquidating last year, has been revived by the directors, and, in the hands of a new secretary, promises to become an established institution. The Equitable Building and Loan Association, of San Francisco, which is on the terminating plan, is closing up its affairs, showing satisfactory profits to its members. The San Bernardino Building and Loan Association is still liquidating, and takes no new business. The West Shore Mutual Loan Association, of San Francisco, has liquidated and closed its business; the final report is incorporated herewith. |