Anxious Investors

In November ast E. O. Kelly, a ' inan past rniddle age, of good address ' and with a mauner that carried convictiou with whafc he said, arrived in the ' city and commenced soliciting ' meuts in the Granite State Provident Association. He carue bere from Lapeer, and previous to his work in Lapeer, had organized a large nninber of ' shareholders at Grand Rapids. His ' sohemo came highly endorsed and it was ' uot long before good, hard headed ' iness men were among his enlisted patrons. He stu-eeeded in plaoing between 700 aud 800 shares here and appointed two sno-agents, Mrs. Richards and C. W. Hill, the latter a dental student. The offlcers of the branoh organizpd oousisted of S. W. Claikson, treasuror; George Halier, president; C. W. Hill. seoretary and local agent; E. B. Norris, atorney. Fred W. Belser aod C. E. Hisook were amoug those who iuvested. Tüe offioers' aud investors' naines nsed as reieiouce among the community had the effect of seouring many investors ainong widow women and poor persons who like to have a speedy return for money invested. A dispatch from Concord, N. H. , nnder date of Jan. 27 contains the sequel. It is chiefly as follows: Conoord, N. H., Jan. 27. - The Granite State Provident Association, oue of the largest business and loan associations in the United States, has declined to take new business under circumstances that make things look problematical for iuvestors in tbat concern. The immediate cause of the suspension is said to be the impossibility of doing the business it advertises to do, and also of oomplying with the laws of many of the states where its business lies. The association has often been the object of solicitude by the bank and iusurauce commissioners of various states by reason of the large functions it hp.s assuiued and the contracts it has made. By reason of its extraordinary liberal offer to investors ■ it has extended its business into 22 states, and it has long been the conrention of state officials that if forced into liquidation the assooiation would not be able to meet its promises. By paying extraordinary oommissions to agents the business of the association as a borrower has grown enormously disproportionate to its business as a lender, and it cannot hope to make the returns to its stockholders that it promises in getting their subscriptions. lts money cannot be invested so as to meet these obligations. It is believed that tens of thousands of investors in 22 states will lose hundreds of thousands of dollars. As far as the inside affairs of the concern became known, the facts all point to a condition of things most unsatisfaotory. First and foremost stands the fact that the books of the concern have not been kept by methods that gain an intelligent idea of the real state of the business or the methods of doing it, through the published periodical statements. Large salaries are paid to officers, in one case as high as $1.0,000, when the common belief of investors has been that nothing of this kind attached to the expense of the concern beyond the market value of regular clerical help. When a man has been obliged to pay $16 on every share before he has begun to see any return for his investment he is likely to get discouraged in the interim. In any event, when no proflt is allowed during the first three years of the eight in which the assooiation promises to mature all shares, the maturing of all shares mnst uccur in the brief period of five years. In the tbree years $36 have been paid; in the following five years $60 more will have been paid ; and in order to make this investment of $96 earn a face valué of $200 in eigbt yeais, olear profit of $104 would have to be earned in some way during the last five years. The president of the association, James O. Lyford, bas just resigiied his office on the grouud that be himself is so uninstructed as to the real condition of affairs that he wishes to wait for the results of the legal investigation now going on before he is willing to continue the business. The assoeiation's affairs havo bflen tbo object of more or less suspicion for more than a year. Last surnraer, there was a joint examination of its affairs by the bank commissioners of New Yorit, New Hampshire, Vermont, Maiue, Rohde Island and Connectiout. The Maine examiner was wholly dissatisfied wth mafcters, and the association was not thereafter permitted to do business in his state. Connecticut and New Hampshire fonnd things satisfactory to them, provided one or two changes were made in methods of doing business. The suspension of the asociatinn wil depend upon the further quesrion whether a full investigation of it affairs reveáis a fatal weakness and methods of operation inconsistent witb i the law of the several states. A dispatob from Lansing on Tnesday snid tbat ueither the iusurance uor ing clpartrnent of the state has any control over the assooiation. Luoh asRociations aie uuder the supervisión of the secretary of state, who eau make an exaruination ouly wbeu asked to do so by 50 ruembers of the association. As neai' as could be asoeirained the : gan niembers have paui in abuut $26,000. Tbe associatioa bas loanR in tbe j state $100,000 un reilty valued at twioe the latter figure, ünder the Michigan law 8tookholders residing in this state havo lbo first lien uu the liohig.:i i assetsof the cotnpany. This rneaus tuat the Michigan investors eau get their money back, altbougb it may take a oourse of law to do it.