| Show BUILDING LOAN ACTION SETTLED Company and Agents Are Reinstated by State Commission The State Inter-State Fidelity Building Loan association became the Fidelity Fidelity Fi Fi- Fi delity Building Sc Loan association Wednesday and nd the Prudential Investment In vestment company and its agents were reinstated to deal in securities in Utah by the state securities commis zion sion These were the results of the agreement agreement agree agree- ment merit Tuesday of all parties stipulate ing ng dismissal of ot the case of ot H C. C Flaherty Flahert under th the firm name of Prudential Prudential Pru Pru- Investment company against the he State Inter-State Fidelity Building Loan oan association and the case of I Eugenia H H. Lundquist against Hugh M M. Tuttle doing business under the assumed name of Prudential Invest Invest- nent company H H. C. C Flaherty G. G W W. Childress and John Doe The cases were dismissed by Judge Roger toger I. I McDonough as the result of the he stipulations The suit filed by Flaherty Fla Fla- herty had sought to restrain the build build- tag ing ng and loan association tion from amending amend amend- ing ng its articles of incorporation and had lad asked for an audit and appointment appoint appointment ment of at a receiver The suit filed by Mrs Irs Lundquist against Flaherty and Prudential Investment company had Continued on P Pace Faze ce Thirteen S. S t I BUILDING LOAN ACTION SETTLED Continued from Pa Paste e Nine char charged ed fraud and misrepresentation misrepresents misrepresents- tion in the obtaining of State Inter stock from her STOCK RETURNED Under agreement by all parties th the stock obtained from Mrs L Lundquis Lundquist was returned to her In commenting on the stipulation Shirley Jones attorney for Flaherty with Badger Rich Rich said All AU parties agreed to 19 the stipulation stipulation tion lion to dismiss both actions It is my opinion however that court inquiry should be made into the validity ty o of building and loan laws as enacted by bythe bythe bythe the 1933 legislature in house bill mJ 89 and senate bill 48 This statement was made by WilHam Wilham Wil Wil- Wil Ham liam J J. J Lowe Low attorney for the Fidelity FIdelIty Fidelity Fidel FIdel- ity Building and L Loan ln association This company was the first buildIng building build build- Ing and loan association in the state of Utah to be admitted to the federal home loan bank system It qualified March 13 and now has a credit with the bank for tor O. O In order to fully function in keeping with rules and regulations of ot the home loan bank and the new federal laws it was necessary to make certain amendments amend amend- ments to the articles of incorporation that in the future high dividend rates might be reduced By taking this acion action ac ac- ac tion ion the association can borrow thousands thou thousands sands of dollars from the bank at Portland Port land and and loan the same to horse home own own- ers ars In this state at very reasonable ra rates tes The proposed amendments were submitted to the bank commissioner of this state and have received his ap ap- ap p roval ro AMENDMENTS APPROVED The amendments were almost unanimously approved by bj the stockholders stockholders stockholders stock stock- holders Tuesday The secretary of the association advises that it has shares of stock outstanding including shares shares' of investors' investors withdraw able abl stock and 1800 shares of perma perma- neat nent stock Exactly shares or 72 2 1 per cent of the stock was represented in person am amby and by proxy at the stockholders' stockholders meeting Of or this amount shares or per cent voted for the amendments while white only 1001 shares or 22 per cent voted against the same The association now has an authorIzed author tied capital of oi shares which when fully subscribed will furnish i a permanent non capital capita of which be withdrawn with with- drawn until all investment stock is paid in full This permanent capital can an not participate in dividends with other classes of stock during any dividend divi dead period until dividends on investment investment invest- invest ment nent stock for such a period have been een declared at a rate of at least 4 per er cent per annum If the net earnings earn earn- ings of the association are are sufficient to o pay 4 per cent In cash or credit to the he investment stock then only can the he permanent stock receive in cash cashan an equal dividend of 4 per cent All AU earnings remaining thereafter for or must be distributed on an equal basis among all classes o of stock tock according to the amount on the thc books woks of the company to the credit o of the he respective shares If through conservative con con- management the officers o of the he company can save from the amount set aside to a surplus and reserve re reo re- re serve erve account as is provided by the amendments In execs of or 3 per cent of the gross groM assets of the association then hen any excess of said 3 per cent ma may maybe maybe be oe added to permanent capital and shall hall become permanent stock to further protect the investment stock Under these amendments the investors in get Jet the full book value of their theirld old ld stock as a credit on the new certificates ca test It will vilI be the purpose of the company company com corn pany to build up continued good gooc will vill e 1 e |
