THE COURIER
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The statement of the affairs of the
Y. M. C. A. made in the daily papers
last week has called general attention
to the financial management of the as
sociation. Four or five years ago the
lots at the corner of 13th and N streets were
purchased for $40,000 a large price even in
boom times, and about twice what they are
worth today. The building has co6t about 855.000 making the
total investment 895,000. The start was largely a matter of "faith,
hope and charity,'a good combination, but one which the hard times
have seriously affected. As the association had very little to start
with it was necessary to mortgage the property for 835,000, and as
the money was needed before the building was completed, five or six
gentlemen, who signed the mortgage note, also gave a guarantee
bond to the mortgage holders that all liens on the property coming
ahead of the mortgage would be paid. These liens, which have
been allowed by the court, amount to about $38,000, and are a first
claim on the building. The mortgage with interest comes second,
amounting to about 836,500,
making nearly 875.0C0
against the property. Should
the mortgage go to fore
closure the holders would
undoubtedly sue the makers
of the guarantee bond, thus
compelling them, in order to
save themselves on their
guarantee to pay the mort
gage and take the property.
There is in addition to the
ground on which the build
ing stands 25 feet on N
street and about 50 feet
square on 13th encumbered
for 86,000.
To meet the indebtedness
the association has in un
collected pledges about 836,
000 which were given dur
ing the canvass made by Mr.
Fay a year or two ago. It
is very doubtful if these
pledges are legally binding,
and it is certain a majority
of them will never be paid
except after suit, and it
does not increase good feel
ing for the Y. M. C. A.
among those who have paid
their pledges, to know that
course, especially those who have not paid their pledges, as this
would cancel them. On the other hand it seems a little inconsistent
for an institution which has made a parade of its ethics to slip from
under its liability and leave five or six public spirited citizens, who
came forward in the hour of its need and pledged with their person
al endorsement, the honor of the association, to shoulder the burden
alone. This is what they will have to do if the directors now
"throw up the sponge,' yet a good many business men seem to feel
that it is throwing good money after bad to put anything more into
the building. If it were located where the store rooms would bring
a good rental it would make some difference. As it is the rentals
amount to scarcely nothing. Now let us see what the members
themselves have been doing. About a year ago four or five directors
raised among themselves about 8150 and secured the services of Sec
retary Doane. They then had a paying membership of 200. Mr.
Doane has increased the membership to nearly 1200. About 400 of
these, largely railroad men and boys, came in on special tickets.
They made one-third payment down and were to pay the other two
thirds during the year. The crop failure came and a number of
them have given up their membership on account of lack of em
ployment and pay. Then most of the membership secured by Mr.
Doane will expire during the next few months and it will be difficult
to secure renewals as long as affairs are in the present chaotic con
dition. But at the present time the memberships will average about
85000 a year, just about enough to pay running expenses. There are
only a very few of the larger associations in the country that do thiB
Most of them fall short in their running expenses every year, and
depend on gifts from friends to carry them through. The deficiency
is now about 81500, but it is claimed that 81300 of this is for repairs
that should bo charged to the building, The salaries of Secretary
Doant, who has resigned.
and of Physical Director
Graham are back nearly
81000. The present board
of directors has worked
hard and faithfully. The
present difficulties are due
almost entirely to misman
agement in the past. The
association lost its stanch
est friend and best advisor
when John R. Clark died.
Had he lived to assist in its
financial management the
outcome m'ght have been
different. The chances for
the association hoi li ig its
building are far from bright
at present.
Farmer Care Say Squire, does thet CON stan' fer Confidence or
Consolidated?
that the larger ones will never be paid. They were all made on con
dition the fuh amount of 846,000 was raised. As a matter of fact
this amount was never obtained, the canvasser Mr. Fay, resorting to
a number of questionable methods to deceive the public and induce
people to give. Almost all the large pledges have "strings" ied to
them in one way or another and it is hopeless to attempt their col
lection.
It seems to be a question now whether to pay up the deficiency in
running expenses and let the wont stop and the mortgage beforeclosed
or try in some way to save the property, From a business stand
point it would be a very fair sale of the property to let it go and the
association start in again free from debt. Some are advocating this
Now that questions of cur
rency reform and changes
in the banking system are
being agitated that class of
people who seem to make
it their business (probably
because they have nothing
better to do) to abuse and
misrepresent the banks of
the country will probably
be heard from. This kind
of talk is not so common
in the east as here in the
west, and especially from members of the populist party, the ra.;k
and file of which and the leaders, too, for that matter, have the
least banking business to do. No one expects a grocery licuse, a
drug store, a lawyer or an insurance agent to do anything for noth
ing, even a small thing, but that a banker should piesumo to charge
for services rendered or for stationery furnished or in fact for any
thing except interest on money loaned, is sufficient to call forth the
execrations of a "long Buffering community. As a matter of fact the
banker does more than any other business man for nothing, and be
has done it so long and for the most part so uncomplainingly that it
is taken as a matter of course. His customers come to him for ad
vice and he is blamed if it does not prove to be the wisest, but re
ceives no credit when it helps a man to success. Probably during
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