AN MY‘SES 9? THE FACTORS
CONSIDERED BY COMMERCIAL BANKS 1N
GRANTING CAPITAL LOANS
FOR. A PROPOSED RESTAURANT

“\th for “It Down 0‘ M. A.
MICHIGAN STATE UNIVERSITY
"Georgia! 1‘". Kostarides

1959

 

1| mm; Iwyujm WW ’ll'li'fll'i“

   
 

  

LIBRARY 1
Michigan 5&2th

A

AE ANALYSIS OF THE FACTORS CONSIDERED BY COFKERCIAL BANKS

N G ANTING CAPITAL LOANS FOR A PROPOSED RESTAURANT

BY

Georglos P. Kostarides

A THESIS

Submitted to the School of Graduate Studies of
tichigan State University of Agriculture
and Applied Science in partial
fulfillment of the requirements
for the degree of

FASTER OF ARTS

The School of Hotel,.Restaurant and

Institutional Kanagement

1959

i

,

~orgios P. Kostarides

LJ

ABSTRACT

This research is offered as a key to better under-
standinc of banker and borrower relations. The importance
of a satisfactory understanding in this relationship can—
not be overemnhasized. Wise management determines the
success of the business and thus the banker's interest in
management is of the utmost importance. From the viewpoint
of the commercial banker, what is the fundacental difference
between a successful and an unsuccessful operator? Tie
answer 5, that the borrower rust have a definite prograr.
In the light of the above, the banker is obligated to con-
duct a thorouoh investigation of the borrower's record.

In this study the writer embarks on a case situation
in which he sets forth the proner methods and procedures a
borrower rust follow before he presents his case to the
banker. In addition to the above this research accumulates
a number of factors and procedures used by the banker when
considering approval of the proposed loan. Althoush one
banker's procedure say seem to be different from another's,
the basis reasoning is grounded in he principles laid out
by the American Institute of Bankin:, namely, "The Basic
Credit Factors". With these "Basic Credit Factors" in mind
and with all other necessary information presented by he

borrower, the banker then proceeds to tailor the loan for

his client.

___.——-~'——'__

t~.....~~ ‘F _ .-. .

Geornios P. Kostarides

It is evident, then, that the greater the mutual
understanding between banker and borrower, the greater

the benefits for the parties concerned.

DEEICATIOJ

”he author dedicates this manuscript to his parents,

i o

es. Their intense desire to see

i);

Tr. and firs. Peter Kostari
their son have the privilege of knowled~e t rourh sany years

in school has become a reality. This is a privilege of which

both parents were deprived durin: their earlier years in
life. Without their cuidance, insr ration, and financial

help this drear of nine and theirs would have retained unful—

filled.

G.P.Ifl

ii

ACKNCWLED3YEKTS

The writer has been assisted in this study by a great
many people. It is difficult to acknowledge each one who
“as contributed his time and effort, but the inability to
express Pratitude conpletely and perfectly is not reason
enough to refrain from recognizing anyone at all.

irst of all, appreciation of a particular kind and
degree must go to Dr. S. Earl Thompson, Assistant Director,
School of hotel, Restaurant, and Institutional Management,
for his guidance in the initial development of this study,
for his interest and for his helpful suggestions in the
preparation of this manuscript.

Eratitude is also due fr. Stephen C. Andreadis, a
restaurateur in the City of Lansing, lichigan, for the re-
lease of his personal financial statements to be used in this
study. he writer is deeply indebted to the owner of restau-
rant (X), who was kind enough to reveal his business financial
Statements and other data used in this research. His request
to remain anonymous is kept according to our Gentlemen's Agree-
ment.

Fuch appreciation is expressed to the various contri-
butors too numerous to mention. however, special recognition
is due to all bankers and conferees mentioned in this study,
who provided the writer with a general knowledge of the many

problews involved in acceptable loan procedures. Special
iii

 

thanks is due Mr. H. Andrews Hays, Vice President of the
American State Bank, for his interest in the study, and his

permission to use the speech entitled, ”Financing Restaurant

Needs".

1 v

TATI} C? CQTTZS TS

CfiFTL;
I. IITRODECTIOR . . . . . . . . . . . . . . . . .
II. . KT OD OF FROG; UiE. . . . . . . . . . . . . .
Description of the husir 053 to be purchased. .
Future plans for the Operation of the business
Proposed plans for finar cinzg . . . . . . . . .
Cash flow budfet . . . . . . . . . . . . . . .
Support for the operating budret . . . . . . .
iprlyirnf fOP’t/M? 103.. . . . . . . . . . . . .
III. lfifflfilv £33 WIT? BATH REFRESEYTATIVES . . . . .

Inter‘iic\is o o o o o o o o o o a

Conferences. . . . . . . . . . . . . . . . . .

Questionnairc. . . . . . . . . . . . . .

a:
H
p.
(D
'3

Iter of inportance to the hank when con .
in: a loan application . . . . . . . . . . .

Results from the opcstionnaire . . . . . . .
It}. RECC:: EIIDIETICI :1. o o o o o o o o o o o o o o a

AP ‘ LITDI"

O O O O O O O O O O O O O O O O I O O O O C

“3 v. ..
l)I )IIIOZ'R‘XPUY . . . . . Q Q o g o a O 0 o 0 O O O O I

C x
( ,1“;

1.x
\0

II.
III.
IV.

1?

Inventory of Equinrent with Indication

{-4
Pl
I

"T OF I

'4. Ln;

3‘
*1

Condition for Each Iter. . . . . .

,3

Cash Flow duu2et

Estirated Annual

Ratinf of Iters According to Importance.

Cp-ratinr Budfet.

A

Results fron the Questionnaire . .

vi

CHAPTER I
IHIRODUCTIOK

The writer here presents his attempt to secure funds
with which to purchase a food and beverage business. By
utilizing this actual case, the writer investigated the
policies and procedures followed by lending agencies in con-
sidering applications for loans to provide funds for the pur-
chase of a proposed restaurant business.

There is no question that the banker is interested
in prospective business owners. But he wants to know, for
example, the borrower's past record, how the money will be
spent, and, more important, how the money will be repaid.
From discussions which the writer has had with individuals
who have applied for loans and with others who act upon such
applications, it is apparent that many of the applicants
fail to present adequate support for their requests. Thus,
this research is offered as a key to better understanding
of banker and borrower -- but not as hard and fast rules.

There are, however, certain limitations to this study.
Obviously, for example, a study of all types of loans for
Ell types of business establishments is clearly beyond the
Scope of a master's thesis. Hence, a particular type of
business, the food and beverage business, was selected in
order to indicate what the chances are for a successful

loan transaction.

2

The method of research used to discover the most suit-
able loan application procedures includes correspondence,
personal interviews, and the available literature, all of
which is specified in the bibliography. Moreover, two pro-
cedures proved helpful: first, a preparation and submittal
of loan application forms to four banks based upon the pro-
posed purchase; second, a preparation of a questionnaire in
order to analyze the factors used by the bankers in accept-
ing or rejecting the application. .

In the pages that follow, the eXpression "restaurant
Operation" or "food service establishment" is defined as a
place of business where food and non-alcoholic beverages

are served.

 

Although the case presented is what might be called a hypo-
thetical one, the writer and his partner used actual informa-
tion made available by the bankers and by the seller. This
was done in the hOpe that the reader can more accurately pre-
dict the probable action upon an actual loan application.

It is to be emphasized that the case here presented is hypo-
thetical only in the sense that we did not carry the trans-
action through to its final, logical conclusion; that is,

we did not borrow the money. Furthermore, this case was
deliberately built up as a "shoestring" financial situation,
to prod the banker for more information.

CHAPTER II
KETHOD OF PROCEDURE

In an effort to determine the factors which are con-
sidered by commercial banks in granting capital loans for
the purchase of the proposed restaurant the writer applied
for a loan and discovered that the bankers were interested
in the following factors: the description of the business,
the future plans for the operation of the business, the pro-
posed plans for financing, the;cash flow budget, the physical
inventory of equipment, the estimated annual operatirg budget,
and the support for the operating budget. In this chapter
each of these factors will be defined and outlined, after
which will follow a letter and brief history of the appli-

cants.
A Description of the Business to be Purchased

The business is located in Lansing, Nichigan. It is
a brick building forty by one-hundred sixty feet (40' x 160').
The operation is a combination of counter and self service.
Parking for fifty (50) cars is available at the rear of the
building.

An inventory of the equipment in this establishment

is shown in Table I.

TMflEI
INVENTORY 0F EQUIPICEKT

Estimated Estimated Present

Number of Items Unit Value Total Value Condition

200 Chairs and stools 3 20 $ 4,000 good

50 Tables 30 1,500 "
1 Serving counter 2,000 2,000 new
1 Coffee urn 500 500 "
2 Cash registers 400 800 "
2 Grills on counter 200 400 "
l Refrigerator 500 500 "
1 Meat Grinder 100 100 good
2 Fryers 150 300 "
2 Battery ranges and

working tables 1,000 2,000 new
1 Band saw 300 300 good
1 Meat tenderizer 60 60 new
1 Portion scale 20 20 "
1 Buffalo chopper 250 250 good
1 teat slicer 100 100 "
l Dishwasher machine 1,000 1,000 old
1 Lee machine 1,000 1,000 good
1 Large scale 50 50 "
l Baker's oven and

working tables 1,000 1,000 old
1 Mixer 500 500 good
1 Walk in box 2,000 2,000 "
1 Small refrigerator 400 400 new

Kitchen utensils, silver- good

ware and china 2,000 2,000 & new
1 hamburger machine 450 450 good
2 Compressors , 500 1,000 new
1 Freezer 1,500 1,500 "
1 Back bar 2,000 2,000 "
1 Water cooler 70 70 good
1 Steamtable 1,500 1,500 old

Air conditioning system 3,500 3.500 good

Neon signs 500 500 "

Office equipment: adding

machine, typewriter, safe,

desks and chairs 500 "

Plumbing and electrical

installations 1,000 "

Good will "

EXplanation of terms:

[IQEO
‘ 0,000

The above items in the inventory of

GQuipment are classified new, good, or old on the basis of
their age as compared to their estimated life:

Thus:

TABLE I (Continued

New: 0-25% of estimated useful life has expired
Good: 26-50% of estimated useful life has expired
Old: over 50% of estimated useful life has expired

It is worthwhile to note that the U. 5. Bureau of Internal
Revenue permits the restaurateur to depreciate his restau-

rant equipment up to a certain number of years. Examples
are:

(l) Refrigerator - fifteen (15) years

(2) Furniture and fixtures such as tables, chairs, and
counters - fifteen (15) Years

(3) Hot water heater - eight (3) years

the business:

I.
II.

P

Future Flans for the Operation of the Business

The following plans were made for future operation of

Extend present lease to ten (10) years

Rental Charges to be as follows:

A.

Five hundred dollars (8500) monthly or six thousand

dollars (86,000) a year, provided net sales are not

over two hundred thousand dollars ($200,000) during

that calendar year.

In the event that annual sales are more than two

hundred thousand ($200,000) the following provisions

will

1.

govern:
One percent (1%) on all sales up to three hundred
thousand ($300,000) in addition to the six thou-
sand dollars (S6,000) rental specified in para-
graph "A" above.

Two percent (2%) on all sales above three hundred
thousand ($300,000) within any calendar year
during which the proposed lease is effective.
This two percent (2%) increase will be an addi-
tion to the rental charges specified in para-
graphs "A" and "B" 1 respectively.

All rental obligations will be payable by the
fifteenth (15th) of the month following the

month in which they accrue.

7
III. A ten year (10) year modernization program for all fix-
tures and equipment at an estimated total cost of fifty
thousand dollars 350,000). The objectives of the pro-
gram will be to:

A. Increase table seating equipment and rearrange such
as a part of the modernization program to provide
the following:

1. Forty percent (40%) tables for two.

2. Forty percent (40;) tables for four.

3. Twenty percent (20%) tables for six.

4 The use of wagons for the collecting of dishes,
etc.

3. Rearrange equipment as it is replaced according to
the function for which it is intended such as moving:
1. Production equipment closer to the processing

area.

2 Serving equipment closer to the service area.

Lo

C. Install a Food Cost Control System.
Proposed Plans for Financing

The restaurant under consideration was available at
a price of forty thousand dollars ($A0,000). This figure
did not include the real estate. Three (3) plans were pro-
posed to lending agencies for the purchase of this business:
A. Plans one (1) and two (2) took into consideration
a bank loan to be made to two separate individuals.
In plan three (3) the loan was to be made to a

partnership of both individuals.

as

4.1 .

3 In plan one (1) or two (2) a ten thousand dollar

($10,000) cash fund was provided by each individual.

This fund of ten thousand dollars (310,000) was

allocated as a working capital.

To consummate the

purchase in plan one (1) or two (2) a ten thousand

dollar (310,000) note was to be given to the owner

by each one of the buyers.

C. The pooling of cash by both individuals under plan

three (3) would produce the following situation:

1.

2.

The
follows:

1.

A ten thousand dollar ($10,000) cash payment
toward closing the purchase.
A ten thousand dollar ($10,000) cash cushion

for working capital needs.

three alternatives in the hypothetical case were

A bank loan of thirty thousand dollars (330,000)
to Kr. Stephen Andreadis. The balance of the
purchase price to be covered by a note of ten
thousand dollars ($10,000) payable to the present
owner in twenty (20) semi-annual installments at
six percent (6%) interest.

A bank loan of thirty thousand dollars ($30,000)
to Mr. George Kostarides. The balance of the
purchase price to be covered by a note of ten
thousand dollars ($10,000) payable to the present

owner in twenty (20) semi-annual installments at

six percent (6%) interest.

A bank loan of thirty thousand dollars (330,000)

,J.

to the partnership of Stephen Andreadis and George

Kostarides. The balance of the purchase price in

the amount of ten thousand dollars ($10,000) in

cash to be provided equally by Kessrs. Andreadis

and Kostarides.
Repayment of the bank loan was to be made within a

ten (10) year period. Interest rates and method of payment

was stipulated by the bank and agreed upon by the borrowers

as follows:

1. Six percent (6%) interest on the unpaid balance.

2. One hundred twenty (120) equal monthly payments

at two hundred fifty dollars ($250) each.
Additional funds of ten thousand dollars (310,000)

in cash were provided in plan one or two (1 or 2); each

individual buyer was to advance the cash sum of five thousand

(35,000) dollars. These additional funds were supplied to:

1. Provide working capital.

2.
3.

Begin remodeling Operations immediately.
Provide an immediate opportunity for payment of

remodeling costs and debt retirement through early

profits.

Cash Flow Budget

A. The purpose for which the writer extended the budget over

a two and one-half (2%) year period was to show the

following:

10

l. The strengths and weaknesses of plans one (1) or two

(2) produced by capital and interest payments. In

plan three (3) a more stable budget position was

realized.

2. The effects of each item on the over all budget.

The importance of:

‘J
O

a. Fixed cost contingencies.
b. Estimates of future sales.

Q Detailed information for each item in the budget is as

a—l.

follows:
1. Cash balance as of July 1, 1956, is the sum of the
moneys each individual had invested in the business.

2. Cash income from sales is the average monthly income

sustained by the establishment during 1955. It is

expected that within a few months the operation can

increase five percent (5%) on sales. A similar in-

crease is expected to take place by the end of the

first year Of Operation. The above increases are

considered normal. Extensive remodeling plus
aggressive management warrants the consideration.

3. Cost of food is the average monthly cost during 1955'

at forty percent (40%) of sales. Cost is proportioned

in relation to sales increases.
4. The Operating expense figure is the monthly average
for 1955, less reserve for depreciation.

5. Remodeling cost figures are portions set aside to

be spent during the year. In this case, a five

6..

11

thousand dollar ($5,000) yearly cost is earmarked

for remodeling.

Debt and interest payment figures are the fixed cost

on borrowed capital.

C. From the budget flow, it should be noted:

1.

The semi-annual payments on the original owner‘s
note plus the interest payments of December 1956,
June 1957, December 1957, June 1958 and December
1958, bear considerable weight on the cash position.
The above situation is realized more under plan one
(1) and two (2) than under plan three (5).

The expected five percent (5%) increase on sales
produces a steady cushion in all plans.

In plan three (3) the original cash investment of
ten thousand dollars ($10,000) is fully recovered
by July of 1958. A full recOVery for the original
investment in plans one (1) or two (2) is realized
by October of 1958. The above possibilities only
support the writer's Opinion. A conservative and
gradual spending (remodeling, etc.) will enable the
operation to establish a better cash position.

The gradual modernization and rearrangement of equip-
ment is expected to reduce Operating expenses.
Assuming the above statement to be true, the cash
position of the business will further improve.

The cash flow budget is shown in Table II and the

estimated annual operating budget follows in Table III.

 

 

-— .-

12

F O R P L A h l O R 2

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1%“; July ' Auqust September October Eovember December
Its: In Out . In Out In Out In . Out In Out In Out

- /‘ ,K .—. - . ,5 (x r— O 7 r- r- I,“
2/1/3s 1C, C0 9,109 9,215.23 0,850.75 8,941.50 u,©59.50

7:17;)! if) Lallcfi- 3. -
Cash Inc0;- 17.1?1 17,391 l?,lfil.~— 13:191--' 13,191.-— 13,191.--
Costa: yao‘ 5,:TT ' 5.725 5.335--- 5.525--- 5,225.-- 5,525.--
Onoratir* “‘ :n
Ices Reserve for Leoraciation 7,357 7,757 7,15 .-— 7,157.-- 7,357.-- 7,357.-—
2 l

 

 

 

 

 

 

 

 

F7
1
-. —‘ - ~ r ‘n
’FL-O“‘Fifl 'oeelin” Cost II,UDU 29v.-- l,OOO.--
1,,'.‘ -:~. (‘3 ”’1." fiv‘xry .. 7
WRIT 21311 I'll M 'C ?7,1.;f’.’o',llt 4'91.) ' _‘> . t-) , .J( .10 7‘96-?5 J‘ 50"” ,197-75
. - .~ r0 no 7 ‘1 “5 ' , 7 "'r OO o w~ -0 . w
1~m«w;‘ 2~,191 14,0:2 22,:00 1,.0s0.1; r:,hlx.25 ¢,;79.50 (a.0-1.ra 15,07...5 22,134.50 14,019.-- 21,246.50 15,075.75
,. a p x,» "_ ‘1 :1 I77 ) A .. ....
x: I? C‘ ,1 [‘1‘] "1"": 3...] [71(1), 1")17‘Clyq'f '4 3.9.2 - ~ :: 21 ":1 . :.._’;; U 1 lrgO . l L) k.“ 1 94:5 0 IO F; ’ Ub 1: . ;)O 7 j 372 . ZS
2*,191 27,121 22,?00 22.?00.c0 22,410.25 22,410.25 22,021.75 21,021.75 22,1?4.50 22,714.52 22,240.50 21.139-50

 

 

 

 

 

 

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Cash ialance grou"ht sorwarc 1\,ie 9,1u9 :,“lj.:3 8,850.75 8,943.50 3,055.50

, 1 a . . - v 1 v ”‘1 7 ‘3'? __ . ~
CNN; Income 1 .111 15,151 15,1,1. 13,191.-- 13,191.~- 3,191.--
n, my. n ‘1 ,' LT. 710$?) 5 7.07; CE '42": ,—— t; 72: t: '20: 7mg;
‘VQD‘J 01- ~‘)O“ ~/’/"-r ’*"" J” " 4:2 )-"'"" ,1,,;¢.._,.-- 5:.)¢._/.--
Operatdj1*iixnenses

- ,_ ‘ r) r~ ,_ r o v‘ '7 fi-Tf T "" 7.1:"! ' 7C:\"' __. ~

Less deserve :0: vvarvcidtloe 1,121 _ (a -1 7’:;5' 7.357.-- 7.957.—- 7.357.-—
.m -\ r 1’\' ‘1 .' ‘ {N
AeromellRV Cost l,v0£ DVL.-- 1,MOC.--

‘ « 'r-x " 'A 1“ -v Q '- z :(a. ,-: q
Debt and Interest raYYPnt “UV 399-72 237'Lb 395.95 395.-- 393.75

 

 

 

 

 

5 22,154.50 14,079.-- 21,246.50 15,075.75
.50 8,055.50 9,170.75

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-2 300 97 300.00 22,410.25 22,410.25 22,021.15 22,02 .75 22,114.59 22,154.50 21,246.50 21,2&6.50

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1957
Iten

Cash Salance 1/1/ 57
Cash Incoa;
Cost of Food
Opera tin" hroensr
Less Reservc for Depreciation
Pre—openin‘ lvrodclint Cost
Debt and Inix1wmdt Taywent
T1t’l°
Sits}; _,;l:-*x7tw C:zr1“y‘ bWBIW7817d
C 1"). b
1957
Iter
Cash 5a ance Grou it Forward
Clah Income

Cost of Food

Operatinr Expenses

Lcss Reserv: for Drpre ciation
Remodelin: Cost

Debt and Intwrest Fayrent

Cash Balance Carry Forward

TAYLE II (continued)

 

 

 

 

 

 

 

 

P J B I D ” h T T O R P L A l l O R 2
Ju .ry February TQPCh April May June
In Out In Out In OUt In Out . In Out In Out
3187? 6,939.25 6,607._— 6 226.~- 5,346.2 5,467.75
15,191 15,191.-- 17,191.-- 13,191.-- 15,191.-- 13,191
9’993"‘ 2,3?5--- 5,325.-- 51325--- 5.125 5.329.--
7’25"-" 7,357.-- 7,357.-- 7.357.-~ 7.35 . 7,557.--
»OC--- 100.-- 508.-- 500.00 500.
292 DO 301-29 590.-- 588.75 587. 1,171.25
26,56“z 15,574.10 20,1 0. 25 15,575.25 19,798.-- 5,572.-- 19,417.-- 15,570.75 19,037.25 15,569.30 655.75 15,353.25
6,989 8" 6,607.-~ e,22<:.-- 54346.25 5,467.75 4,805.50
r— -' 1 '7 , ”L r r‘, /‘\ 1‘ n 7". 1%,”. ‘..‘ r—v 1 . r7 7 » .2. 1‘ C r~ O _\ \
?O)36"075 20,56 ‘ 7/-W(:\‘11-‘(M: 29,185 o¢_ J_} {I;j10_— 121(C)kJ 0—- 19,417...— 1212)1{.-- 19,017.95 191(Jf‘7. 1 ’6’)_“.7D 1Q,(5’3.7C\

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7 ,191.

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500.-- (A. 500.—— 500.—-
792.,L :91..5 59C.-- 788.75 387.30 396.85
91,351.75 19,579.50 80,879.87 13.:”J.“5 20.59‘.-— 3,572.—_ 20,215.-- 15,570.75 19, 835.25 15,569.E 19,456.75 13, 068. 25
7,767.25 " 405.—- 7,L:4.-- 6,644.85 6,865.75 6 599- 50

 

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20,21«.-- 19,8559 25 19,875

9,456.75 19,456.75

 

 

 

 

 

14
TXTLE II (continued)

9 * ~ “ 7 1 o ” 8 " D “ v m 8 o a 8 L ‘ ‘ ~ *1
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October Hoveroer Dccerber
Out In Out In Out

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Can) Enlancc 7/3 57 4,705.55 9,C59.7C 41974-75 5,991.73 5,059.-- 5,155.--
C333 Incot- 17,PAC.—— I?,CAQ.-- 37,74}.—~ 17,349-‘* 13,049.-- l?9249-“
COCt of TOD: T’KOO._- 5,CCC,—- 5,600.-- 5,6OC.-- 5,SOO.-- 5,600.*-
Oneratinfl fir-rgnc

L089 ’oor~t= j1c Doornciation 7,7OC.~— Y,'1L.-- 7,“CO.-- 7,30C,_- 7,705.-- T,50C.—-
Ire-oocnin' i 19¢»11n2 36:1 :98.-- Sw<.-- 500 -- 500 -~ SCC.--

Debt anfi ITVr'*'iL Tayxcnt 735.—- 337.15 TBC-SO 79,.75 TCC.—~ 1,143.75

 

 

 

 

 

 

' ‘ C : ‘ " 7 ”'“” ’7' "’ “ “ ' " ' ~ " “.7 "-"“7 '17: 7, r- O 7 . 2 f: . : ~: :3 _ ;:1 1 -— :1 1 ,
Totals 1 1,8 ,1 I_,7.,.-~ 11,, 5.50 1,,Z. .(L I ,155.,J 1_,{,2.5C 5,530.25 1 ,751.95 1 ’91U __ 19,780.-- 1U,937.__ 14,048.75

,1 . - - c /» -~: r. o or: , - ~'
0,. Manor: r Pom-m 41:9» . so 4, £11.31; - 5,. L91 . : 51969 . -- 5.199.-- 1191.18.35

o (:1 , < c r, 1 r ,. b .- -:‘ :7 1 F r~ o :: ~ 1‘ 7 r1" o 917 w o. , 5: 5:; or. .— 5 _ ; , g.
]~‘~~)VL"‘-SO 11/2L'7/I-3U 1‘12 71‘5")": .1: (J (15.5C $-;'—1{‘+5' 1’3 19’: v.” {5 1.:1..SC.2_; 1--2 390.83 191919.-- 18,918.-- 18198/70“ ~8,9:37.--
C A 1 E I 0 “ ~ I L 1 I 1 a o 1 1 L A 1 5
I C)?”

-— ./(
III?”

1, 5 . 1 w.,..n . w , ,: fl 7P0 f , Q Jfin : 7*” W” 4 co ’ f '

C88» aIarcu “FOO. t Foruaro t,;d..9C 5,451. O ,51(.1‘ 8,559.25 6,052.-- 6,721.--
, ~ WL ~ 7, 7 Q. ~ Win A - -
[:3sz 12100 F‘ 1 "’(.,‘v"’+‘9o-- 1 J , \JJf-ijo-u :_ , 'ZI%} 0-- j z’,‘j“+‘..—- 17"|:)49.-— l "\34l\)._-

_ - - .. z

7-1. 1f“ 5.1“ (7/121 . A
yogi 5’,’-.\C’(‘"o-— _),\-/C)LI.-— J,L‘Ok«"o~- [2' 600... 5,600.-- r- GOU.--

o“
4/ Q

a f
\

cratirfi Ixncnscs

A

Cost of
On

Less {630314 for Doorccintion 7.5CC.-- 7,5iJ.-- 7,500.—— 7,ZOO.-- 7,300,-- 7,300.--

«(“1th
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I
I
kn
O
a
I
I
kn
O
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.

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89~Ouelin5 Idat 5U£ —- ..1 -- 50C.-— 508.--
1 . - ,. I. ,. ., 4. 7‘1 .. a ‘1 (a f,‘ ‘7' ' .1 ' "' ("f C r\ ,_ ~ :3 « , _
Dent and iCOQPWEc ray art 15.-- ._.7, 588.3‘ 151.25 280.-- 273.7q

 

 

Totals - - '
« ‘ I ~ I ~ I v j C ' ‘. . . ~ 1 ~
Gas? ?a19nco Carry Forwarc (,~5. 51 ,5

:.50 20,433.85 3,781.25 20,501.-~ 17,780.-- 20,57c.-- 13,778.78

./

?
'\)Z‘I.?5 6,65‘:o-" F-,7210"- 617:91095

IO
(3
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A

<‘1r7, :.r1“.-'1:~"7 rm 0‘ 1:. to o 7, ,1 r‘. r-r‘. "K "L: P", in”? d 71: 17* r, r-
L)C , “3- 7 o /'C\' [-LLL‘ ’1‘. y)(.’ “.(X, ’IC]-- D “(J (.0) .2 CJ. 0 DC A KL) _/‘¥’(." . 7/ [BLI ‘,.'DL/‘.75 Q‘q'lzI’JH . 95 90,17 ,j" 95 201“\Cl .-- 201501 .-- 2C‘;470.‘-- 2CLIQYO. Cn-

 

 

 

 

 

 

O
:>
U

W/Nf'IC‘

_.__,.,.,.

Ito;

Cash Balance 1/1

Casi Incoxo

Cost of Foo”

Oneratind Lrnonse

Loss Reservc To? Depreciatior

Tre—onenj-n Cc‘odzlin' Cost

Iebt and Interest Pay“cnt
Totals

Cash Talance Carry Forward

1f‘5?
Ito?

r‘asn Enlanco Brought Forward
231 Income

ost of Food

0 cmzltix Lijnlses

Loss Res “Vi for Deoreciation

hrodolinf Cast
Deot aznfl Irtcront Payfiont

:otals
Cash an once C2 arry Forward

 

 

F L 0

January

In

r—!
14,395.--

 

‘fi

~4

(continued)

Out

‘3
C)
O
O\

.4
C;
(j
C

 

‘7." T

.' A- A...’
0,791.25

14,5450.-

)

on?

:QUW

\n51

\N

r»

‘ 4.
uJ

‘3

U

\ 51 (I)

$TK1
Uhfl
~5U1

\fi

a;

CD

9\

1

.4
bflfififl

“10(3
'r‘. “\ lfi (5‘)

April
In Out In
6,026.50 7,
14,555-" 14,545.“

 

 

June
Out In

7, 753( 25
1H:545:-_

 

5.50

, “5:45 0--

2,981.

; /f~ r—
(f) L)L._)E . DO

m
H
H
fl
}-’
U1
(
m
H
to
T...)
#3
H
uw
'3
m

14,545-11

1.7

\N

5 21,736.75 13,978.50 29,303-25
5

71758.25

?F.7: 21,736,15 22,303.25

9. 6(10 O.(_5
14,5450”-
5,306.--

7,300.“
500.--
372.30

 

F...)

O

U

\ou)
OLn

H CO

“\1 ‘~ 31
~
U‘U

97,033.50 13,97
9.0:..7

9. 5 23,598.501
3 5

:O\4
\C)
0:3

 

 

'fi U1m

911897075

‘0
\o

m
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231598-75

23;52§.75 241165.25 24,165.25

 

1,126.25

14,252.25

 

\j‘I

024,165.25 1?,
C. 25 - 10,68

 

16

J

I131; II (continuec)

:0

C {5- {3} T? L" L O ‘-’ 71 3‘. 1“; 3? T T? O z“ 73 1. n C
w - -. I u .., I I 1 .4 L ;( .L J 13. ‘u l ' J{

 

‘ CD A v I .“ 1 “
lggu July AUjUSt onntombcr Octonnr Hovewbor December
Itev In Out In On In Out In Out In Out In Out

Cash Balance 7/1/53 3,071.-— 8,640.-— 9,210,-—

Cnnb Incore 14,545.—- 14,545.—- 14,545.-— 1
Cost of Foog‘ 5,306.-— 5,606.-- 5,8oC.-— 5,806.—-
Oporatfirr'fixrcnio

Loss Resnrvn for Donrnciation (,3
Iro-ononin' Rn ofielin" Cost ‘ 5
Dnbt an? Inf rest Fay ent I

997§§-—' 10,365.25 109939-75
1}):7‘5l.:/T‘-~ 12‘ ,E‘1¥50-- 1/|,5}+50"-
(806...... 5,806.-'

U1

(N r" 'é‘r‘ F 7 . r 7 . , '7 “v ’\ c '1
IJS.“— {’;"3'-- 79JOC-" {:J'Q."” (990b0'“ 7,)OO.--
L4—- 7C;.(3 1‘(.-- 565.75 504.50 1,105-25

 

 

 

 

 

 

 

 

62¢ .11 x ’3’) ” 1 __ ' t: k r" ‘ A" "'J 7 s” r" ,. ‘ A," '7‘ r: 7 ~ ’ F P —~ ‘ x "
n ‘ ‘V‘J‘LLA‘J'L‘ fl ._ _ (“L’t'lL' l);;‘ '-- ‘ ,1"«‘-- 1. 3:)(110‘ -3,,yi.,.,. " l, ’97 0"" r?4,7”)'?.__ 12,971. D 24,91C'093 5,970.50 P5921314 071:) 14,709.75
. (an... '0 r)"; A, ‘rq ‘ r- g‘ a yfi 1 1' . x " m ‘_ P1 ‘A m/r- r
\/(.,3. ,k-.1(.~:1.C‘I .2-“I‘PH. L‘Ol‘Nk‘vr‘fn-L \.1\’“L .-"’ 1 ’( (J.-- 9,{ ( 0"- l<)L;‘(':/opp 10,9?9075 10,715.50
mm C ’ hf / q? C” r“ 5" ‘v ”"2 ,7 WT? I 7 . ““r '
(1,(‘b.-: «I, “r.—- L;,l\:.-- 3-,1,;.-- ;_,(:p.-~ €;,.3I.—- 5%,;97.—- 24);;2.-- 2QJ910.25 24L;10.25 25,434.75 25,484.75
\
3 1 U ” F L a x 1 ‘ 3 L T F o 3 P L A n a
. ' —" f
/

1"“; 5 65‘

I to!"

\

y _V

‘1\ r j , u.» - ‘4‘ ’x. r“ —-: . /~ 5" \'
.uldUCO orou gt “orworo 10,mu-.—~

\J]
C)

v [‘1
n ~+ < VI,“ r g , {<12 ,‘., .-- 14,;45.--
VOU“ Of *-‘J3~- ~= »()b.—- . .. I: —.r » ‘ o
Toe “ "" J’““L° , J’JJ“-'- 5,a06.-- 5,806.-- 5,806.--

1 ’.

:‘f'7 ‘ K.) '5’ ‘ 1 '— A
21.~-' :1_,J?{.75 12,399.23 12")"
l

1

- I
‘ p 1 57.3%: __ , c: * I. z'
111Cf) _, 1‘ L, )1'. l r,‘.1~1;.—— !‘[,J4Cj.—— 1-1},J225.—-

9.4 5-.

C
:3

\_
U1 R)

B
‘
J
.p-\

non I‘“o‘“ Tc? For c 3 “ 1W1 __ " 1‘“ - 71‘ - '
13%).” D .1 q ’ :‘fir' ’- )1 J LIP CiL tiOIq. 1 ’ ,:L(‘ o {’ .«IL’VJL: 9 fl 7 O '(1 Q -- 7 , 700.-.. 7 ’ :0U.-- 7 7/00 --
.10); ()210_;_11,'-M,1J-JO(. _. LL)“ . __. f<“xC __ Eflfl ,. N " '
\. ‘ .1. r d T., t F -», A. ~.. “r ._ . «r- a '/ ,- - 'j' . “WV ’-- DC'TO'-- 500 '-
Dé 0 L1 Uh: .1.dht L k.. I. t .Z' LIX/held, -: (Lu , -- "'--’= 7' 21.5.7 2Kr' ~~ -. ,. ’
L .- . . g I_. d ‘..l Q -~ /\)2 . {D 564. DO 36:?) . $5

 

 

 

 

 

Totals 2? 97?.-— 17 UWF __ o: 202 -- 2 0V” V o‘ 7 n n ~ q"? < , - -
nqr‘ ‘j flq -q' V“ ‘ ’r ‘f ,. 1 A, fi: ’A'LV o L ’1. . x... o l, ,,/‘jl7 , '7‘ o b ,/(‘, 0-... 2b,94/4.25 13,971.75 27 517.50 13,9/O.E)O 28 092.—- l7 969 2:
q». ) {1.1-51.1’1CC v‘ «(PL ‘1’ 1' OI “xi-IL 1' 13‘? -- .11 q’3'] f5) '1 ’3 7’3?) or: A 2 '5- " ’ I ’ . J
L L~L,x 2.... :2, h -t _c, 1;.LJ 12,:72.»O 1:,547.-- 14,022.75
“I: r37“ 0!; F) 7-7 "4" [VT/“"3 ‘_ O ‘P' A fir'f“ rr- r "r, r. r
1., -) '_ .. __ h— (h . __ . t‘ ,' C. . __ —. 1.) ,1 , . ___ .' I" ‘r ,. j, C) W ,‘ ,f‘ ,7)“ ,l. , A P) :-
, .1 -7), _ I y)! 2.)) C L« (t. o (.) Ltu,’ [( a...) 2(3,9“+1+025 26,944.25 2‘ 2.317050 9Z’517.§O 28,092.-- 28,092..-

 

 

 

 

 

”'7

— I

 

 

 

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;»?1nwntratIya Inwunczz
r“ \ a - - -
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} 7. _,
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.1 3—. 1 . ‘1 ”" .. (- ~ A
_ I .IsceIIaN(ous AXDCHSO 7{' QA
. I

 

Total

L.

_._> -\I_ "A

) ',.J 1..) j,_.J I“,

’\L.J
J.

.J

7‘) “‘3 FL)

r7 (\l

Icturn on

'— '1
(.I

A r: ’
L» o J '
.-, I '
’ (W .
,- . V

Return on

1

Notc
Into

7 r, »,
LJC) km}. 1

Tun

‘ ~ ::
tnOIMHhfip

Loan
IIItCI
Keno

To

ten thousand

Total

\y‘fi")
LIAN)-

F1372
~J

I

V

'7‘ I
- t fl‘ 4‘,
J. UL-.1

'T'\

(“A ’i

U 101

’1'? *3 ,

1...], {-11 '8

V1“. (“It

A. \1 L1
bI‘V v. (3344' (:1
¥ LVLV. ..-,JLL4K_)

“31‘ P» "

I

- Us .. t-‘
.

Plan
Iota. One?

mV.’ ‘C‘U )5}

rest Itun'ents

ielinw Cos
tal

Hot Inco e

I

'Tav:«n1ts

.1 .-
84ULI’I‘

Income

7“ -. ~~ 7‘ 7 7- r‘ v'!
f 3 u . ‘,I .d
A. ~ .4 ‘»‘ , U A4

'fl.

5 I an One 0

ntini
to Own

to
to Ban

1.

glpe to

C; :11“

Three
atirv‘
to Tknq
to

("1. ,,

I“ I um)
IIICOTK?

.C. 3 1

Ownzez‘

-‘ .,
,11d .’
-J_ -L'JI

1:1] 131‘.

invest ant is

Incoric

1?
l
.‘A

1 r
33?: 1"-

t durini tbe

dollar Investnont is

F—J

LUV—J“!

A
\

I .00
783.00
000.00

’1'? ’5’

~+ '51

O

f-

70 C)

,nog.oo

 

\J]F—’\»J

‘0

I ' . - I. ?> ‘ ‘ F ‘. ’ ' \ \
Dncrtrtln' ;;C?GJSCWI I; - U7I ~
4

 

10,716.26

12,170

Fa) ")
OLE.
‘2 )! \W‘J
‘Q H

O

O\

'1 R)

k)“:

 

 

 

 

18
Support for the Operating Budget

The United States Business Census figures on the Lan-
sing area for the years of 1949 through 19541 indicate that
the sales volume of eating and drinking establishments has
been growing on an average of nine percent (9%) annually.

The last yearly market analysis study made by the Lansing
State Journal2 indicates a gain of fourteen percent (14%)

for the year of 1953. Therefore, the proposed operating
budget for 1957 is made on the assumption that net sales

will increase by ten percent (10%) over the figures for 1955.
It is expected that an annual ten percent (10%) increase will
be maintained throughout the ten year period. This increase
will accumulate to a total of 135 percent (135%) over pre-
sent figures by 1967. The item of salaries in the budget is

supported by a detailed list of employees and salaries.
Income

1. Food Sales. The figure for food sales is a ten

 

percent (105) increase on the 1955 net sales. (158,129.19 x
7»

.10 = 15,312.92, 153,129.19 + 15,819.92 : 173,942.11)

 

11943 Business gensus, Vol. 3. P. 21.09. 1954 Busi-
ness Census Preliminary Report, Retail Trade, January 195:,
Series P-R.P. 1-22.
anrket Analysis of Lansing, S.K.A., Lansing State
Journal, 1955.

3Profit and Loss Statement for the period of January
1. 1955, to December 31, 1955.

19

0 Other Incone.

The other income fiiure is based

 

upon a ten percent (101) annual increase over the 1955 amount.4
Operating Expenses

3. Cost of Food 501d. According'to the 1955 figures,5

 

 

food cost percentage is forty percent (40%) of sales; there-
fore, it is assured that a forty percent (40%) food cost will
be an appropriate estimate for future operation . (173,942.11

‘..8- -)o

C h
\~L)

(N

X.40:

\JJ

7

U“

4. Wares. The labor cost figure is thirty percent

(50%) of total net sales.

This amount is lower than that

for 1955, because it is assumed that the owner included his

salary in the 1955 figure.

The following fizures are based

on present ware payments paid by the establishment.6

PROPOSED PAYROLL

 

 

 

Position No. Employed Per Week Per Year
Chef 1 115.00 5,980.00
Cook 1 80.00 4,160.00
Baker 1 9C.00 4,680.00
Dishwashers 5 120.00 6,240.00
Salad Taker l 50.00 2,600.00
p00d Line Waiters 5 225.00 11,700.00
Busman (wosen) 5 120.00 6,240.00
Clerk-Cashier l 55.00 2,760.00
CaShier 1 50.00 2,600.00
Faintenance 1 55.00 2,700.00
General Kitchen Helper _l 45.00 9 340.00
9 1,005.00 52,050.00
4

Ibid.

SIbid.

61bid

2O

5. Laundry. According to Gray and De LoPadua, "General
overhead (gas, electricity, laundry, advertising and so on)
plus your set-aside for interest and depreciation should
range between fifteen and twenty cents."7 In this study
general overhead ranges from 15.6 cents to 19.9 cents per
dollar sales. Gray and De LoPadua will call this an excellent
showing and in their terms "the minimum amounts".

6. Advertising. (.5 percent of net sales),8

 

7. State Taxes. (5.9 percent of total income),9
8. Salaries. This figure consists of salaries for
the owner at one hundred-fifty dollars a week plus an assistant

manager at one hundred dollars a week. In the event of a

partnership the amount is one hundred twenty-five dollars a
week for each partner.10 The followinq schedules give the

appropriate breakdown under each plan.

Plan One
Position No. Employed Per Week Per Year
Owner 1 $150.00 37,800
Assistant Manager 1 100.00 5,200
15,000
Plan Two
Owners 2 $125.00 $13,000

 

7Gray, Eadeline and Bass De LoPadua, How to g3 a
Success in the Restaurant Business (New York, Greenberg,

19385,"p7‘243.

81bid. 91b1d.

 

 

10Proposed plans for financing this purchase.

21

9. '3333. The rent figure is stipulated in the lease
arrangements. According to Paul L. H. Heine, this amount
is the minimum for a percentage lease. Kr. Heine advises
that rent on a percentage lease be three to seven percent
11

(3-7i) of gross sales.

10. Depreciation 9p Equipment. In past years, the

 

depreciation on equipment has been "bulked"; therefore, to
keep a fair and accurate record the method is continued. The
Woman's Institute of Domestic Arts and Sciences12 approves

of the method. '

ll. Repairs and Maintenance. This item is reduced to
one percent (1%) because the author expects the reduction
will be forthcoming through the installation of new equip-
ment. According to Gray and De LoPadua, "General overhead
is in some ways the most flexible item of all, for it varies
"13

greatly according to your type of place.

12. Supplies. (.5 percent of total income).14

13. Local Taxes. (.4 percent of total income).15

 

14.. Kiscellaneous Expense. (.1 percent of total

income).16

15. Small Equipment Loss. (.2 percent of total

income).17

 

llheine, Paul L. H., Food Sales Unlimited (New York,
Ahrens Publishing Company, Inc., 1952), p. .

12 W an's Institute of
Serving Foods for firefit, The om
Domestic Art and Sciences (Scranton, Pennsylvania, The Haddon .

Craftman, Inc., 1949). p- 189. la
1392. Cit., p. 246. lhlbid. lSIbid. 15Ib1d. ‘nad.

”

 

22

16. Tote Payments pg ggggg. This amount is pre-arranged
with the owner in the option.18

17. Interest Payments pg Qgpgp. Gray and De LoPadua
say; "So it looks as if, under any circumstances, you'll have
to put a substantial amount of your earnings away toward
interest and depreciation. If you don't, you'll be left
plumb in the lurch when the inevitable time for replacements
comes along."19

18. Loan Payments 22 Bank.20

 

19. Interest Payments 39,2235,91
20. Remodeling Cost. (Cash Flow Bud:et).92

21. ngg Payment pg ggpg. (Proposed plan three).23
22. Interest Payments pg §gp§.24

23. Remodeling Cost.25

The net return on funds invested by the owners is as

follows:

1. Plan one or two - 14.55%

2. Plan three - 26.40%

It is the writer's conviction that the above estimated

expenses are liberal. Greater profit should be forthcoming

when:

 

18Proposed plans for financing this purchase.

190 . it., pp. 246-7.

.2. ___
20 i this urchase.
Proposed plans for financ ng p

211b1d. 221bid. 231b1d. 241b1d. 25Ibid.

# —

 

23

I. tore efficient equipment is installed as is pro-

posed in the plan of operation.

2. The change to a complete self-service operation
is complete.
3. The prOposed remodeling is finished.
4. Greater managerial efficiency is attained.
5. Encouraging future business trends become effective.
The collateral supplied by the borrowers includes not

only cash but time, effort, and resourcefulness throughout

the period of the loan.
Applying for the Loan

To gather information about what factors bankers want

to know about a proposed food service business, the writer

applied to four banks for loans. With the help of his uncle,

Ir. Angel Priggooris, a preliminary interview was arranged
with each of the local bankers. At the conclusion of this
interview each banker professed his willingness to help.
At this point the writer was given the usual bank applica-
tion forms for the use in the loan procedure. (Copies of
completed applications may be found in the Appendix, pages
73 to 97.)

In addition to all information recorded in this
chapter, the writer prepared the following papers to supple-

ment the applications:

1. A personal letter to each bank representative as follows:

603 w. Ionia Street
Lansing 15, Nichigan
June 16, 1957

Kr. Edward P. Kinich
Assistant Vice President
Kichigan National Bank
Lansing, Kichigan

Dear Sir:

I am engaged in the study of problems involved in
financing the purchase of a business serving food and bever-
ages to the public. You may remember my conversation with
vou concerning this subject on Karch 3, 1957. I was intro-
duced to you by my uncle, Kr. Angel Priggooris.

I hope to develop the material which I collect as a
Yaster's thesis in the School of hote1,Restaurant and In-
stitutional Kanagement at Michigan State University. It is
important that the data which I collect be as accurate, com-
plete and realistic as the circumstances will permit. I am
therefore taking advantage of your kind offer of assistance

in this manner.

I submit herewith the following materials:

1. The annual operating statement for the restaurant

at
covering the 1956 business Operation.
The balance sheet for this business as of January

1, 1957.
A projected plan of operation for the business at

this address including:
a. An estimate of capital improvements which I
consider desirable and necessary.
b. An annual operating budget based upon future
plans for operation of this business.
4. Loan applications for your bank from:
a. Kr. Stephen Andreadis
b. Myself
5 A proposed plan for financing the purchase of
this business.
6. A market analysis of the area.

 

|\)

\21
C

A supplemental report is attached to this letter which
will :ive more details on items mentioned above. I also en-
close some personal information to augment that included on

the loan application blanks.
I appreciate your willingness to consider this matter
and to cooperate in my efforts to develop such data.
Sincerely yours,
Georgios P. Kostarides

n)
U"!

Personal history of Ir. Geo. P. Kostarides

Kr. Kostarides is a native of Greece and a naturalized
citizen of the United States. He came to this country at the
age of fifteen (15). Upon arrival, the applicant cosmenced
formal educational training in the public schools of Indiana-
polis, Indiana. .

The prospective buyer went into the restaurant business
with his father and brother in 1938 at Indianapolis and stayed
in such work until he was drafted into the army in December
of 1941. Upon the applicant's discharge from the army in
October of 1945, he and his brother re-established themselves
in the original restaurant business which their father had
Operated during the War. In the latter part of 1947, the
sale of the building in which the restaurant was located
forced the applicant and his family to dispose of the busi-
ness by January 1, 1949. Meanwhile, the family purchased
real estate properties in Indianapolis, some of which were
converted into parking lots. Others were remodeled into
small apartment tenements. The applicant was employed in

this new business until his marriage in 1951 to a Lansing

resident.

$

hr. Kostarides, realizing some of his shortcomings
in his educational and business ability, re-entered hichigan
State University in the fall of 1951. Upon completion of a
four (4) year business curriculum in June of 1955 with a

B.A. Degree in General Business, the applicant is now working

for his Taster's depree in the Hotel, Restaurant, and Institu-

tional Tanagement School.of the Collefe of 3~siness at Fichi-

ran State University. The applicant's educational career

could never have been possible without: (1) financial aid

from the family, (2) summer self-employment with the family

interests in Indianapolis, Indiana.
Personal history of Lr. Stephen Andreadis

fir. Andreadis is a native of Peabody, Vassachusetts.
The applicant's eifhteen (18) years of formal educational

training includes a Bachelor’s degree in education and a

Faster's degree in history. hr. Andreadis had his college
training at Boston University and at harvard University.

The prospective buyer's early business experience was with

the family :rocery and delicat ssen store in Peabody, Fassa-
chusetts. After Yr. Andreadis received his Lester's degree,
he was drafted in the army in 1941 and served during the
World War II until he was discharged in the winter of 1946.
The applicant's marriage to a Lansing resident in early 1946
placed him in self- mployment with his father-in-law in the
restaurant business at 1002 South Pine Street in Lansing,

where he now operates. Er. Andreadis has been an active

church member and has participated in various comaunity

affairs.

All the above material, of this research was submitted

to each bar“ representative for his consideration.

¢‘l\

IXTERVIhWS WITH BAEK REPRESENTATIVES

This chapter summarizes a series of letters and inter-

J.

views with fourteen bank officials concerning a loan for the

purchase of the business under consideration. The writer's

purpose was to determine the reactions of bank officials to

the proposed loan and to determine what they consider most
important in the consideration of such an application.

It is to be emphasized that the banker, above all, is
a very practical man. he has his own preconceived notions
about what constitutes a sound risk. he has, in other words,
a kind of mental puzzle or framework into which the borrower's
qualifications must fit. ”hile all bankers adhere to this

each one Las his own little peculiarities

O.

standard framework,
within it.

Althoufh rest of the bankers were as hesitant as a
court in establishinc precedents on the basis of a moot case,
they went as far as possible in answerin: questions and riving
opinions as if they were acting on a real issue. This will
become perfectly clear if we now examine what the specific
bankers had to say.

The writer received two letters from Tr. Baxter, the
first dated hovember 2, 1956, the second December 4, 1956
C6 .). The pertinent points

(see the Appendix, paresl?5'u>l.

of these letters were:

PT

1. Roy A. Foulke and H. V. Prochnow's Practical Bank

 

Credit should be consulted.

2. Restaurants generally do not need short term bank
credit. Instead, they require lone term capital loans. But,
unfortunately for the prospective restaurant owner, the banker
prefers, one might even say he is forced, to give only short
term loans.

Besides correspondence Ir. Baxter also granted me a
conference on December 19, 1956, during which he stated briefly
a particular experience with a restaurant capital loan in which
the silent partner with substantial security played an important
role. By means of this example Kr. Baxter gave the writer the
impression that the bank's policy is to encourage loans to the
restaurant industry provided such loans are short term and
adequate equity capital is available. This is especially true
for established concerns. Great emphasis is placed on the
point that a restaurant loan or any other business loan is
tailor-made to fit the particular situation in which it is to
apply.

The pertinent points which the other bankers-~Hays,
Foster, Reck, Thorp, Bindner, Wells--made in their reapective
letters are as follows (see Appendix, pages 108 to 12?:

The bankers were negative in their attitude toward
long term loans (as a rule loans for a period of more than
five years). One banker, in fact, would not grant a long

term loan under any conditions, stating that the maximum

PO
‘0

period would be from two (2) to five (5) years.1 Another
banner, on the other hand, was willing to grant the long
term loan if real estate were :iven as collateral.2 Kore-
over, ter: loans to restaurants, as revealed by a recent

study, have, on the averafe, 2.?"fi liabilities.3 (Our hypo-

.1

thetically proposed loan ranked from 751 downward to liquida-
tion.) In any case, the banker is always unwilling to commit
hinself a long as the life of the lease equals that of the
loan. ihe approaching terminus of this lease would in it-
self endanfer thr chances 3f repayment of the loan.4 During
times of "tifht honey” conditions, bankers are especially

r .
hesitant in grantinf lon? term loans.) The ten-year period

of the lens term loan involves too nany uncertainties, such

it)

s the continuin: capacity of the nanayement, stability of
the location, and the business conditions in feneral.6 The
best solution for the prospective restaurateur is a land
contract with the present owner, a contract known as a "con-
ditional sales contract."7

The banker has several Kain concerns when he considers
srantinj a short tern loan. He wants to know, for example,
the borrower’s ability to bring in profits. He also asks

such questions as: Is this a food buy for the borrower? Is

 

A
See Appendix, p. lff. (Ibld., p. 11C.

3 .. 4 a f
Ibid" p. 1.1.. Ibldo, no 1.1 o )IDl'j., p. 115.

 

 

30

it a forced sale? Are there any tax liens azainst the busi-
ness?8 Ioreover, the banker always scrutinizes the applicant's
financial statement with respect to proper percentages on in-
come, profits, taxes, and the like. The same banker also
noted that equipment is of little value for collateral in
securing a capital loan, whether short or long term. In case
of default, equipment would bring as little as ten cents (10¢)
on the dollar.9 The applicant's net worth must be more than
the loan value. And finally, no money can be borrowed to buy
the business or to pay off its owners.10

While the above remarks are applicable for any pro—
spective restaurateur, there are a few considerations to be
mentioned with respect to the hypothetical situation. First,
the bankers preferred that we have at least three (3) years
of operating fipures; this they considered highly desirable.11
It was suggested that even though partners would profit from
their association in the beginning (they would have more
working capital), they would nevertheless not rain in the
long run since the proposed business would not adequately
support both of the partners' families. The same banker also
sugsested that the applicants have more of their own resources
or funds borrowed from private sources for investment in the

hypothetical case.12 Of course this has its disadvantages

'7
bIbid., p. 110. 91bid., p. 110. lOIbid., p. 109.

\Il
}..'

as well as its advantares (money from private sources usually
demands a higher interest rate--due to the fact that a hiyher
risk is involved).

The writer also gained some additional pertinent in-
fornation from conferences with the bankers Grant, Dygert,

Steele, Johnson, Featherston, Early and Helium, which now

follows.

‘.

Conference with .r. liles Grant, Vice-President,
lichifian National Bank, Lansing, Iichigan

On October 29, 1956

\

.r. irant, an officer of the bank, afreed to study the
application and on a prearranged conference he was kind enough
to make the followinr observations:

1. The personal histories attached to the application
were desirable. The sore facts available the better. This
is especially true if the individual is applying for his
first loan.

2. Cash assets of enough proportions must be indi-
cated, otherwise securities should be in liquid form. In
this case, securities are not the type desired.

3. Cash value on a life insurance policy is con-
sidered by this bank as a reserve to be used in case of
enerpency.

4. On an individual basis, restaurant fixtures do
not constitute a good collateral.

5. In this particular case, the bank recommends that

 

32

the present owner enter into a sales contract for a set number
of years. The bank will not make a loan when the present owner
holds a conditional-sales contract. On new ventures the bank's
policy calls for cautious and careful investigation, but in

the case of experienced operators, on the basis of the "Bank's
past borrowin: experience with the individual", the bank will
make a loan up to certain amounts provided the management has
been satisfactory. An item of importance which the bank ob-
serves is the rate of depreciation on the equipment.

The loan amounts vary with past experience and at that,
only limited anounts may be extended involving not more than
a year's time. The bank will not grant a long term capital
loan unless the loan is secured by real estate. The loan
officer uses his own Judgment coupled with the knowledge of
the borrower. A loan committee of ten people screens every
loan application. This committee is composed of individuals
who are specialists in different fields of endeavor. There-
fore, many possible questions may arise for which an answer
has to be yiven. In this manner a watch dog is created not
only to protect the bank but in the long run, the individual
borrower.

6. A cash flow budzet such as the one presented in
this case is very helpful and is favorable to granting the
loan.

7. A five year profit and loss statement, preferably
the last five years of Operation is the most desirable to

this bank.

\14
\JJ

8. A banker would like to see an enterpriser make a

rodest withdrawal and have the remaining profits plowed back
into the business. It was Tr. Grant's opinion that a restau-
rant operator should make well above the average salary of his
chef. If the average wages for a chef are $150.00 per week,
then the restaurant owner's wages should be at least $200.00
per week. Therefore, a yearly salary of ten to twelve thousand
dollars should be an adequate amount to the operator at this
time.

9. Past bank experience with restaurant loans led to
the following observations:

a. The Operator who knows the costs of food, labor
and overhead is always striving to minimize
such; he seems to be the successful business-
man, therefore a good risk.

b. A combination of theory and practical experi-
ence is looked upon by the bank as the most
desirable asset.

c. A successful operator in one establishment is
not always successful in a chain of two or
more operations.

d. In summary, this bank's past experience with
restaurant loans has been one of small amounts
with not more than one year‘s duration, secured

by a chattel mortgage or other real estate.

34

7

Conference with.Kr. C. E. Dygert,
Vice President of East Lansing State Bank;

October 24 and hovember l, 1956

After two prearranged conferences Fr. quert made the
following remarks:

1. The history of the borrower is very helpful. The
bank wants to know all the information about the individual.
From the information available, a banker or the loan officer
tries to determine the character of the borrower.

9. The proposed loan is intended to be used as capital
funds, a loan which our bank will not grant for the period
desired. Present day loans are made on an amortization basis
and for a period of not more than two years.

3. Looking through the personal statements of each
individual, I find that the cash balances are not adequate.
Cash should be available to begin the remodeling process.
Securities could be converted into cash but that raises the
question of net worth and convertability. Cash value on
life insurance may give some support to the loan provided it
is assigned.

4. Our bank will always request an appraisal on the
fixtures and may or may not loan 50? of their value. This
is questionable because other factors may enter into the
picture, such as the capacity, character, past business
experience of the individual, and the qeneral business con-
ditions. So far, our bank has had no experience with the

restaurant industry.

5. A year's profit and 1083 statement is not sufficient.
The bank prefers at least two consecutive yearly statements.

Two or sore will provide a seed comparison. The cash flow
budget is a very helpful tool. A vood point to remember about
budaets is the degree of flexibility and rixidity which mus
be available. By the above terxs, I seen that the projection
of items within he budcet in the riyid sense, on a straight
line, will not always prove to be true. Therefore, the near
normal situation will be preferred over the theoretical by
any banker.

6. Time, effort, and resourcefulness may be considered
as supporting items or intangible collateral, although th
banking term "collateral” is more of a tangible nature, where
the bank can touch the resources and recover possible losses.

At the close of the conference on October 24, 1956, the
writer was asked to brinr in fore questions if he so desired.
On fiovember l, 1956, the writer presented to Tr. Dysert the
following questions:

1. Question: In your opinion, 'hat would be a reason-
able salary for the owner of this proposed enterprise?

Answer: Sufficient salary so the earning rate of the
business is a little greater than the cost rate. Iere is the
focal point where we (the bankers) carefully study the proper
allocation of funds, book balances of reserve for depreciation,
cash, actual depreciation and the obsolescence on equipyent

or fixtures.

\. )1
ON

In many occasions and especially during the first years
of business, operators will use their reserves to boost the
cash account.

2. Question: Assuring that real estate is provided
as security, would your bank be liberal in the amount of
money to be :ranted for the loan, or liberal as to the number
of years the loan will have to run?

Answer: In this case the bank will do both and it
may vary with the circumstances outlined previously.

3. Question: How would you neasure a successful
restaurant operator?

Answer: By the "earning rate". Although the earning
rate is not always the true rate because on many occasions
the owner deprives himself of his true worth. For example,
a proprietor nay attain the above situation by reducing his
standard of living, or vice versa. Such a situation of in-
flated or deflated "earning rate" must come under sore kind
of scrutiny. Another situation would be that of the exterior
causes which are beyond the control of the Operator. For
example: the underdeveloped city or one in the process of
develonaent, or - the overdeveloped city which is in the

process of stagnation. The boom and bust locations.

Conference with F. Earl Steele,
Assistant Vice President with the Detroit Bank and Trust Co.

December 31, 1956

Fr. Steele had the opportunity to study the application

K)!
NJ

prior to the conference, and during the conference Ir. Steele
concluded with these remarks:

1. Bank loans to the food industry are difficult to
make as failures in such operations are the most conmon in
the business world.

2. The proposed operators have‘the apparent advantage
of experience and education and under reasonable conditions
should be successful. however, the amount of personal in-
vestment is inadequate, leaving the greater investment to be
made by other parties such as banks or other financial in-
stitutions.

3. This bank loan, to be attractive from the bank's
standpoint, should have the ratio reversed. In other words,
the owner's investment should be $30,000.00 and the bank
loan should be 310,000.0C. It is most unusual for a bank
to make commercial loans even with acceptable security of
more than the net worth. Under unusual circumstances a bank
will make a loan for capital purposes if the loan tends to
be a "term loan" which is for a period up to 24 months.

&. This application is for ten years and is solely
dependent on the continuation of a satisfactory partnership
relation and good business for that period.

5. The security offered is not adequate for bank
purposes. That is, it is not generally marketable or readily
salable.

6. The food business has a large turnover. In the

case of a liquidation order for the repayment of the loan,

\N
i u

the fixtures and equipment produce a sun equal to only their
current market value.

7. Subsequent to the war many general loans of this
kind were made and very few proved to be profitable from

either the owner's or lender's standpoint.

I1)

. It is more common for owners who are selling out
to take a down payment and a conditional-sales contract for
the balance of the purchase price, repayable similarly to
this prOposed plan. In some cases, finance companies may

take such a proposed loan although the interest rates will

“4

be much higher. A ban{ will risk one-fifth on the equipment
value, and that will be the maximum. Therefore, equipment
is considered to bring in Sci less than its original worth
or cost, assumin: of course, that this is a forced sale.
Experience has proven to us that some of the heavy equipnent
does bring in more than the smaller equipment. For instance,
tables and chairs are practically given away in a forced
sale. All these disadvantages are probably due to the fact
that restaurant equipment is tailored to fit the location.

9. Another point which the banks have experienced is
the restaurant partnership instability. Single proprietorship
is looked upon with sore favor. A partnership with a silent
Partner ( nvestor only) is a much better arranéement.

10. Always deal with your local banker and preferably
with the one who knows you.
ll. From the standpoint of information, the proposed

a.Dplication is one of the most complete of those which I

have had the opportunity to Judge.

\JJ
\0

In conclusion, the favorable factors are not sufficient

to encourase a bank term loan of this description.

American Fletcher National Bank and Trust Company

‘1

The following is a summary of a conference with yr.
‘8‘ B. Johnson, loan officer with the Anerican Fletcher hational
Bank and Trust Company, Indianapolis, Indiana.

Ir. Johnson had the opportunity to study the applica-
-tion before the conference. During the conference he pre-
sented the following points:

1. Ten years is too long a period of time for the
loan to run. Two years or possibly three years, all depending
on security, would be the maximum time granted on a loan
application of this nature.

2. The three C's such as:

a. Character of the individual

b. Capacity of the individual

0. Capital of the individual

with the additional two/such as:

d. Conditions - business generally

e. Collateral - such as real estate
play an important role in our decision.

Tr. Johnson added that a balanced situation among the
five C's must exist before he makes his decision to :rant
any loan application. To emphasize the above point, Er.
Johnson pointed out his feelings in the following manner:

If the character of the applicant is excellent and his

I; 7‘.

\1

capacity to pay is good, assuming that the business conditions
and future outlook show promise, then with some capital or
collateral the above individual would be worthy of credit.

3. Collateral: tr. Johnson felt that the situation
presented to his and insufficient collateral. The value of
the equipment anfld have been apprasied because the bank's
policy is to loan no more than 503 of the appraised value.

+ , -.,.
on. collateral

F-
9‘

Furthermore, tLe individuals do not have suffic

eithtn‘ sermuurbzly OI‘.ysintlQm

F4)

4. The bank asked to finance a pFODOSHd purchase 0
this type will consider:
a. Purclaser's standinr with the five C's.
b. Ownerslis equity should be at least as much
as the bank is being asked to finance.

c. East experience with the applicant.

Teri of the loan. Two years is considered

171

n g ylr L11" .

. To debt on tbe FFOYerty navable to the nresent

(D

owner should be outstandinj.

. }r. Jotnson suv‘ested a eossible solution to the

U]

Problev would be a contractual sales COItract witfi tie rresent
owner. This contract would apply to the individual or the
fiartnersbio arranwevent.

5. Throuj out the conference tr. Johnson have tie
author the impression that he also juufes loan applications

on the basis of how much the enterprise compensates the owner.

tion

:3
m

A . v ‘ . a -. ‘.
nPParently Lr. uonnson was tninxinf teat tee coupe

4 (

C

41

granted to the applicants is not enough for the support of
themselves and their families.

The above observation is presented because the writer
feels that Tr. Johnson's personal acquaintance with the wdrter
has prevented him from being more specific on this application,

although he spoke in general terms.
Kerchants uational Bank and Trust Company

On Septesber 6, 1956, the writer had an unscheduled
conference with Yr. C. T. Featherston, loan officer with the
ierchants Rational Bank of Indianapolis, Indiana.

Tr. Featherston had the opportunity to exanine the
application and from a verbal briefing by the writer as to
its purpose, he made the followinx reaarks:

1. Above all, the first line of defense is the borrower.
The borrower sets the trend by his past record. Cash payers
are usually bad risks. These people are afraid to set in
debt and if they do, someone else is behind the scene doing
it. The desire and the ability to pay holds the key to the
problem. The knowledge in the restaurant business is important.
The partnership arrangement and the working agreement should
also be known to the bank.

q Once the bank has all the information about the

C—o

individual or individuals it is necessary to know something

about the business. For example:

a. Is this a going business? Is this a neglected

business, caused by illness or otherwise?

42

b. The competition plays an important part.

c. The monthly or yearly profits from such
operation and the proof of earnings through
past statements (preferably more than one
year) should be given to the bank.

d. The type of food and service.

3. When all the answers to the above statements are
available the bank may proceed with the actual financing by:

a. Calling in a fixture firm to give a fair
appraisal on the fixtures. If the appraised
value is enough, then that will be sufficient
to support the loan. In this case the bank
will grant a loan equal to about 50% of the
purchase price. If the case turns out to the
contrary, then other collateral or a co-maker
should come into the picture. Not long ago
this bank made such a loan to a good operator
and promoter with the backing of a million
dollar co-maker. This particular co-aaker
was behind the scenes so to speak, but he
was also the owner of the property in which
the business was located.

4. An interesting point which Er. Featherston made was
the bank's past experiences with borrowers. A list of occupa-
tions and business was shown to the writer. In this list,
restaurant operators held an 873 rating for being prompt

in the payment of their loan obligations.

43

5. In summary Tr. Featherston gave the writer the
impression that he is willing to accept a restaurant loan
application provided all the above conditions were met. All
evidence must support the highest degree of repayment with

he minimum degree of default.
Indiana national Bank

Kr. Frank Purley and Fr. Richard helium, loan officers
with the Indiana National Bank of Indianapolis, Indiana,
examined the application during the first week of September,
1956. Upon a prearranged conference with Er. Hurley, the
writer obtained the following oral conclusions:

1. The unsecured loan of ten years will not be con-
sidered.

2. If the life of the loan is reduced to five years
and a corporate form of enterprise is formed, then by pledging
the entire stock, the bank may consider the loan.

3. In a partnership enterprise, all partners and their
wives should sign a chattel mortgage.

4. The bank will not consider the loan application
as lonj as the present owner has a note from the purchasers.
5. All cash should be in check or savings book
balances to show clearly the amounts presented. Any securities
not listed on the market may not be easily converted into cash

even though their actual value may be greater.

6. Will the partner be active in the new proposed

establishment? This the bank must know.

44

7. The bank will not loan to individuals or business
by Just having personal property.

8. Principal payments on borrowed funds used for the
purchase of this business should not be included as expense
items. The same applied to the funds used as capital im-
provements. The above items could and should be used in a
statement of application of funds. This could be easily
corrected by segregating interest payments in the other ex-
pense column.

9. Collateral must be in actual resources such as
real estate or securities. The bank will not recognize
efforts, resourcefulness or tire.

10. A cash flow budget analysis is good to have with
any application. Although his bu jet may be a little de-
tailed and quite long, it is welcomed. We think that the
effort merits consideration. A loan officer appreciates such
information any time.

Summary: The term is too long on an unsecured or
open basis. The insufficient investment forces the bank to
ask for collateral. The above items will differ with the
various banks and their loan policy.

In order to learn what factors are given the most

weiaht bv the bankers, the writer requested that they answer

. m_
an appropriate questionnaire. The Questionnarie and its con

Posite tabulation follow.

11‘
U1

Items of Importance to the Bank When

Considering A Loan Application

The primary objective of my thesis is to obtain in-
formation concerning he policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (I) in the blank following the
item which you consider most important, etc. Ky list may
not include some items which you believe should be in the
"TOp Ten"; if not, will you please write them in on the

lines provided and assign them a rank?

1.
Item Rank

 

1. Character of applicant . . . . . . . . . . . . . . ____
General business experience of the applicant . . .
3. Applicant's experience in the restaurant field . .
4. Applicant's training in the restaurant field . . . ____
5. Applicant's previous record in repaying loans. . . _____
6. lfet worth of the applicant . . . . . . . . . . . . __
7. Real estate which can be used as security. . . . . ____
8. Stock and bonds :hich can be used as security. . . ____
9. Location of the proposed establishment ... . . ... ____
10. Potential to be derived from the operation of

the business. . . . . . . . . . . . . . . . . . . ____
ll. Assets and liabilities of the business . . . . . . ____D

9. Future business prospects. . . . . . . . . . . . .

Item Rank

 

 

13. The inportance of a co-signer to the loan
alvplicatiolio o o o o o o o I o o o o o o o o o o o
14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .

The data with regard to rating of items according to
importance as measured by the bankers are presented in Table

IV.

47

TABLE IV
RATIRE OF ITELS ACCORDING TO IFPORTANCE

Rating 30. 1 - Highest

 

 

 

Rating Ho. 10 - Lowest
NO. BANKERS LO. BANKERS NUYERICAL BATIK}

_I_§_5_ APPROACHES!) REPLYIN’} .1. g 2 3: {‘5' {3 Z _8_
To. 1 12 9 5 1
lo. 2 l2 6 2 l 2
Ho. 3 12 8 2 2 3 1
No. 4 l2 7 3 2 1
No. 5 l2 6 1 2 l l 1
NO. 5 12 9 2 l 1 2 2
Ho. 7 12 4 1 1 1
No. 8 12 5 1 1 1 1
“o. 9 l2 6 l 2 2
‘o. 10 12 7 1 l l l
‘o. 11 12 8 l l l 2 l 1
Ito. 1’) 12 6 1 2 1
I-Io. 12 12 5 l l l 1
no. 14 12 4 2 1
:10. 15 12 :3 1 l
Volunteered Items:
Equipment Status 1
Compensating Balances 2
Yeahs of Repayment 1
Relationship of Net

Worth to Debt 1
Purpose of Borrowing l

 

 

h.)

'0

A9
Results from the Questionnaire

Hine of the twelve bankers rated the character of the
individual as the most important item in their consideration.
Out of these nine bankers, eight gave character the number
one rating. Two out of the twelve bankers gave the net
worth of an individual the number one rating. One out of the
twelve bankers gave the number one rating to the following
tiems: humbers 5, 10, 11 and 15.

Although the ratings proved to be scattered among the
items listed, the majority of the bankers seems to rest with-
in the first four ratinrs. A summary to the fact proves the
following:

TABLE V

RESU TS FROI THE QUESTIOKKAIRE

 

 

 

' ACTUAL NUFBERS WITRIN THE KUNBER OF BANKERS
ITEK FIRST FOUR RATINGS REPLYING
No. l 9 out of 9

he. 2 3 6

L30. 3 7 " 8

No. 4 5 x 7

he 2 4 6

Fe. 6 6 " 9

No. 7 3 " 4

No. 8 3 " 5

No. 9 l 2 6

No. 1C 2 H g

No. 11 5 H 6

NO. 12 1 n P

30. 13 3 H 3

2:0. 14 2 .. O

No. 15 2 a

ghe evidence from the table indicates that the items

were listed in the or er of their i portance by the sanders

-‘. ~' "W‘ ‘ \ . :- r-v-a
the“ COLSLLU113~ an adJlication for a loan. The items are-

percent

12'1" 1 1; fit"

I

Item no. 1 - Character of applicant \of first inpofinnce)
ten no. 3 - fiDPIicaht's experience in the restaurant
lield (of second importance)
Item no. 4 - Applicant's training in the restaurant
field (of third importance)

Item no. C - Let worth of the applicant (of fourth

Iter no. 7 - Real estate which can be used as security
(of fifth importance)

Item no. J - Stock and bonds which can be used as
security (of s Kt; importance)

‘

1 - Assets ahc liabilities of the busines

F .1
C")

Iten no.
(of seventh iytortance)
Ite: no. 1? - “Fr importance of a co-si'ner to the

‘

h importance)

'3
H
i
D
('+

lean appl ication (31"
Itcv no. if - Applicant's marital status (of ninth
importance)
Lvery one of The above ite s has here than fifty

credit to its waifht. Throufhout this study tie

finds that all of the above itens hold seae ihportance

a)

to the banTLr‘s consideration of a restaurant loan.

Li

It is also noted that the first five (5) items are

in harmonv with the principles advocated by the American

u1
0

Institute of Banking. These principles are: character,
capacity, capital, collateral and the general business condi-
tions. This evidence indicates that the banker's train of

thought is always guided by the above principles.

CHAPTER IV
RbCOLRLXDATIOLQ

For future restaurateurs the writer recomrends that
they take certain thinxs into consideration and not blindly
embark upon a business venture, a venture which, if not planned
properly, night becone disastrous. They should, first of
all, have a genuine interest which is supported by ability.
Secondly, they should select the prOper type of business, one
which is in keeping with these two factors. Thirdly, they
must have adequate funds which, however, can be supplemented
by the commercial banker. Fourth, if future res aurateurs
wish to buy an established concern, they should investigate
the suitability of the location, the reasons for the present
owner's desire to sell, and the lease and real estate arrange-
ments. Koreover, they must decide whether or not they want
to Operate the business as an individual, a partnership, or a
corporation. Again, these decisions will depend upon the typ‘
of business contemplated and the funds available. The pro-
spective restaurateurs should also ask themselves: how well
do we know the banker and how well does the banker know us?
Finally, they will want to know how to present their case to
the banner. In the present chapter the writer will discuss
each of these factors somewhat in detai .

The writer recoswends that whenever an individual is
ready to venture into the restaurant business, he must ask

hisself the followinq questions:
51

 

h)

(a) Can I meet the task? As I qualified to :0 through
with the job?

(b) Can I sacrifice time, effort, and money?

(c) Do I like to meet and work with the public?

floreover, there is a certain degree of experience and

‘Y

traininr the individual must have to suceed in business. so
one knows how much experience and trainin: is necessary.
Bankers are usually prone to accept a combination of train-
ing and experience as the most favorable solution. The

following Statement is the banker's reaction to experience

and trainint. Fr. Files Grant, vice president of Eichigan

Yational Bank, states: "The personal histories attached to
this application are very desirable."1 Fr. Carter 3. Tharp,

assistant cashier with The American Fletcher Rational Bank
and Trust Company of Indianapolis, Indiana, states: "The
business appears to have good prosgects, especially when
managed by men of experience and education."9 Fr. hells,
assistant cashier with the Rational Bank of Detroit, in his
discussion on restaurant lending, says: "Applicant's ex-
perience in the restaurant field-~is very essential. Appli-
cant's trainin? in the restaurant field--is important but
should be seasoned with practical experience."3 Therefore,

the feeling aronq bankers is that an individual must be

H)

llbid., p. 31.

 

\le
nQJ

seasoned in dis work. This can be accorplis ed by going
throuxh the process and applyinq as much of the theory he
or she has learned in training.

The prosp;ctive restaurateur should also select the
proper type of business. For example, should he run a steak-
house, a drive-in, or a cafeteria? He should determine which
type there is the :reatest need for in the particular neighbor-
hood or section of the city. But if the need is for, say, a
drive-in and if he is really interested in operatinq a larre
steak-house, then the prospective restaurateur should still

1

hesitate because we wipht nerlect, for lack of interest, his
business. But once he has made the choice in terms of his
own interest, then he must proceed with a location analysis.

"What are the

Then he must ask himself such questions as,
present and future trends in the area under consideration?"

The future businessman should also have enough private
funds for his preposed venture, no matter what the type, be-
cause this is the one item that all bankers scrutinize closely.
Here are some of the usual comments bankers rake. lr. Tharp
says: "We believe, however, that they (applicants) must have
either more of their own resources of funds borrowed from

u 1+

private sources for investment in the business. Kr. Push

31ndner, vice president of the Fidelity Bank and Trust Com-
0

Dany, Indianapolis, Indiana, in his letter states: "The

personal statement to support the prOposed credit does not

 

U1
i?

present sufficient net worth in my opinion to accept such a
term loan."5 Kr. 3. Andrew hays in his point states: "It
is generally considered that it is not a bank function to
furnish long term capital funds for the purpose of buying or
operating a business. Such funds should be provided by pri-
vate funds furnished by the owner, partners or stockholders
of a business. It is illogical to exp,ct a bank to loan
thirty thousand dollars as outlined under either plan 1, 2,
or 3, at 63 (or even 7%) when the return on fifteen thousand
dollars loaned by the owner. . . would yield 33% and under
plan 3, where the investment of twenty thousand dollars would
yield 283 or more. On such a basis, it places the bank in
the position of investing the major portion of the Tani“ L_
yurchase a business and bear the major share of the risk
inherent in the operation of such a business while the owner
bears a much smaller responsibility from a financial stand-

A
point and yet reali7es the major share of the profits."“

(0

The writer feels that the attitude presented by 3r. hay is
more of a universal one among all bankers. Cornercial tankers
feel that they should be the last ones to be tapped for a

capital loan. But if they are tapped, they must, for their

own protection, as well as the buyer's, consider certain factors.

The willingness of the present owner to sell, for ey-

anple, bears some influence on the banker. Here are Kr.

-. n P“ . -‘ r- , r . ‘ —« -
or are "or trvix t) buy; . is 1 ~ ”.e a quIBF‘LCG in
a..- W ' . ‘l. I *
UCr ' r. rys La" t‘e GPl‘Ll“ case in ind, t e ohhrl

tryin: to sell b cause of siczness or otherwise. In such a
case, the sol lrr rifht find hi self in tgc no )3 tion of deal-
in‘ with a Tonoasonis , which would clearly be to the advanta'e
of the latter and his banker. The reverse is equally tr ue:

1" ‘-\ ‘ ~ ' \. \ a r. ‘,‘ ‘ 5" , 1. v y
seen there is no grossur3--rensons OI Healtn or ot.ern ise—-

on tle sell

I“

-r to sell, then the harder th

('3

terrtsfor' the buyer.

Another factor LLQt the banker deems important is the
lease or real estate arran H‘Nt To tLe banker the stabil-
ity of the business is a virtue. 1r. Tharp points out clearly
the enable to. a ‘anker :i it have with respect to stfbility:
"Cu: millintness to invest our depositors' :unds in this
lonf tor: prO'rat ray n13 Q be viewed in the li'ht of the
C.:'=:1licant's proposal to cost: it himself and be owner of the
real estwte, only to a lease of ten years...equal to the life
of the loan. Tie anproachinr terminus of this lease would

in itself hazard the loan in its latter stafes."* Th 3 the

(‘0

banker is not only careful aoozt investi

:3
.
(0*
”D
C)
i.)
r .I
:3 .
U)
U
’1
T)

but a so about safe'uardinf his client‘s chances of success.
-Le bankeiu 1min er"tanc.qur, always 3%M3EIis client's
interest in rind. ”e rakes certain recoxh< nriatiors for

instance, with respect to proprietorial arranfxents. ”he

(7. I\

I H
1‘ A 1*” r "
leixlo, T). *‘v o Ibi'io, Y‘. 11‘.

\J‘]
O\

banker prefers that the client or clients constitute a cor-
porate form of business with individual backing. In other
words, a corporation with the personal assets of each indivi-
dual should be at the banker's disposal. One bank official
undoubtedly considers "the corporate form of enterprise as

"9

the most desirable. The same banker necessarily considers

another possible arrangerent, the partnership, as undesirable
due to the involvement of the partners' wives. Another
banker objects to the partnership form when he says: "Thourh
the partners in combination can give the business a somewhat
improved cash cushion, one non-technical observation which
:e right mare is that the business would appear to afford
the partners a not wholly adequate income and that the pro-
Ject is a more attractiVe one, income-wise if entered into
by either of the individuals singly."lC To illustrate the
merit of the corporate form over that of partnership, a brief
summary of "The Eighth District {ember Banks Business Survey,"
Konthly Review (The Eighth Federal Reserve District, fay,
1956) can now be riven.

The "Survey"11 shows that the number of loans granted

to unincorporate enterprises are greater, but the dollar

1r. Frank Hurley, Indiana Kational Bank; see p. 4? .

.

lofir. Carter, Fletcher American Bank. Indianapolis,

Indiana. p. 113, 11A.

11 n . , -
"sonthly Review", The LighthaFederal deserve District,

EjaoY! 19560

volume is much greater for the incorporated business enter-
prise. The article states: "By legal form of organization,
seventy-one (71) percent of the loans in nunber were outstand-
ing to unincorporated firms. That is to say, for every loan
made to a corporation about two and one-half (2.5) loans were
made to unincorporated business. Over four-fifths (4/5) of
the advances to retail stores and service companies went
to partnership and individual proprietorship. By dollar
amount of loans outstanding the reverse was true. Corpora-
tions accounted for seventy-five (75) percent of the total
indebtedness."12

The same point is also made by "Business Loans of
Yenber Banks," The Federal Reserve Bulletin (April, 1956).
In general, according to this article, the ratio of corporate
to total borrowing was hijhest in business requiring heavy
fixed investment. Unincorporated business accounted for a
substantially larger proportion of the number than of the
amount of loans for business categories. Loans to incorpor-
ated enterprises were seventy-eight (78) percent of the total
dollar amount of business loans in late 1955 as compared with
seventy-two (72) percent in 1946.1?E The evidence reveals
that the partnership arrangement is destined to undergo a

Sreater amount of scrutiny by most bankers.

 

Ibid 0

 

13Federal Reserve Bulletin (April, 1956). Po 335‘36°

The above does not mean that the partnership fora, or
the individual proprietorship form for that matter, is an
impossible one, but rather only one that is not preferred.
How if the prospective restaurateur forms a partnership or
a single proprietorship, then he must be aware of what he is
up against. he--and his banker--must recognize frankly his
ability to make a "go" of the business and thus his ability
to repay the banker. One bank official put it in this manner:
"The borrower is the first line of defense."14 Another banker
states that: "A restaurateur's salary must be one-third to
one-half greater than the salary of his highest paid em-
ployee."15 In cases where the restaurateur cannot achieve
the salary mentioned, the same official thinks that the
restaurateur should not be in business. This banker continues
by stating that, "A successful operator is the one who knows
the cost of food, labor, and overhead, and is always striving
to minimize such."16 Although this banker seemed to be satis-
fied with his statement he cautioned by saying that: "A
successful operator in one establishment does not mean,
generally speaking, that he will be successful in a chain

"17

of two or more operations. here he refers to the importance

of the individual’s personality as a factor of success: if

14Kr. Featherston, Kerchants‘ National Bank & Trust
Company, see p. 41.

lshr. Grant, Kichigan National Bank, Lansing, Fichigan,
see, p. 31.

151b1d., p. 31. 17Ib1d., p. 31.

59

the individual divides his personal attention--the personal
touch-~then he almost literally falls apart, both physically
and financially. Another banker puts greater emphasis on
the borrower's earning rate. Witt some reservation this
banker states his position in the following manner: "The
earnins rate is not always the true rate because in many
occasions the owner deprives himself of his time worth. Ex-
ample: A prOprietor ray attain the above situation by reduc-
in: his standard of living or vice-versa. Such a situation
of inflated or deflated earning rate must always be under
some kind of scrutiny."18

After all considerations of the factors presented above,
the prospector must be firmly set in his decision to buy.
Then he is ready to approach the banker. As Er. Steele and

“r. Hays write in their letters, a prospective borrower must

first see his own banker. The present trend is for the local

 

banker to accommodate his customers first and others later.
If this strikes one as an unusual procedure or custom, then
he should know something about the actual bank-operations,
of which the main ones are as follows.

In the reply received from the Security Trust Company
of Detroit, the writer noted that an extra item, the "compon-
sating balances" of the individual, is important.19 The same

0

)
k?!

.r. Dygert, East Lansing Savings Bank, East Lansing,
'I ‘ -
richigan; see p. 34.

19Security Bank, Detroit, lichiqan, p. 129.

(‘x
\
/

holds true for the remarks made.by Er. Kellum, loan officer
with the Indiana National Bank of Indianapolis, Indiana.20
This new trend is well justified because four-fifths of the
depositor’s book balances, savings, or checking are used by
bankers to be made into mortgage and commercial loans. It’s

a well known fact that bankers are allowed to loan on the
average four-fifths of their available funds. In this fashion
the cornercial banker creates the new money for the borrower,
in conformance with the rules and regulations imposed by
Federal and State authorities. Eoward and Upton, in their
study of Introduction to Business Finance, state; "The willing
banks will look at: free funds available, their feeling of
obliration to the loan applicant because of past profitable
deposit balances, estimate of the particular line of business,
their confidence in the managing of the business, and the
ceneral business outlook."21 Here is further explanation why
the past profitable deposit balances or compensating balances
are important. A thousand dollar checking account balance
will earn the banker thirty-two lollars ($32.00). This is
earned in the following manner. Of the thousand dollars
which is interest free by law to all banks, two hundred
dollars, on an average, is set aside for reserves in con-

currence to Federal and State laws. The remaining eight

 

2OIbid.

 

21"Introduction to Business Finance", Howard and Up-
ton, boward, Bion 3., and Upton, Filler; New York, KcGraw-
Hill. 1953, p. 431.

.~

Fl

hundred dollars is available to be loaned out. Assuming that
the eight hundred dollars is loaned at 6% interest per year,
the fPOSS return is forty-eight dollars. On the average,

.4
C

the Operational cost of a bank is about 2 , therefore, six-

teen dollars out of the forty-eight dollars covers the cost
of loaning the money. The retaining nirty-two dollars is
thus the :ross profit for the ban“. It is evident, then,
that all banks will be anxious to deal with credit worthy
customers. To a banker, money is a perishable item. There-
fore, he must move his merchandise. In this procedure the
banker accumulates new wealth for his institution, for his
customer, and the economy as a whole. And with this know-
led3e of the bank's operations, the borrower should next
present his case to bis own banker.

In this presentation, the prospective borrower will
first fill out the usual application blanks, which will give
the banker a skeleton of the facts of the case. Then it is
helpful to augment that information with:

l. A detailed history of the borrower‘s past business
ventures.

2. A financial statement of the proposed purchase

(a statement going back for at least two to five years).22

 

22Fr. Hays in his letter states: "How successful has

.ndreadis been in operating his present business? His ability
could be substantiated by operating statements of his busi-
ness over the past several years." kr. Tharp in his letter
says: "We would have preferred to have had at least three
years' operating figures but from the one year's operating
statement presented us, we can appreciate the applicant's
desire to make this investment." See Appendix, pp. llO,lla.

(f\
J

w

fl. All other relevant information of the proposed
buy-~such as the inventory of the equiprent, lease or pre—

paratory arrannenents, future plans for the business and

t”
,.
A.

CD

other pertinent points d scussed 1: Chapter II of the
present study.

Once the prospective borrower places h s application
with his banker, he should five the banker tine to considd
it fully. Esually the opposite takes place. Almost all
borrowers approach their banker without any plans. Tr. Lays

n his speech to the Restaurant Association Conference held
at KellO‘f Center, Ric iran state University, Last Lansinu,

«7, said, "Approach your banker

\L)
\ 1 l

T-‘icl.i:'an, on February C, l'~
with your problem and needs well tnouvht out and planned.
One shortconinf of nany potential borrowers is a sort of

vafueness as to the reason for seekin; cre'it and a lacs 0

If,

a protram for repaynent. Varueness creates a poor impress on
as to your manaierial ability and irned ately causes a shadow
of doubt concerninf the wisdon of your pro:ra:."23 There-
fore, after the case has been presented, it is recom-

pended that the borrower be _atient and rive the >a.k enough
time to act upon it. On the surface a bank is considered a
private institution. herefore, many rules and reculations
apply to the bank's activity. with th s in mind, a prospec-

tive borrower must be patient in his demands. The borrower‘s

 

...

_J . -vr-' ‘9 /
Appendix, p. 13;, low.

A;
C.

63

.v

application is usually received by the loan officer who in
turn investigates the facts and prepares a resume for the
loan committee. This procedure gives the comaittee a better
picture in order to judte and ass an opinion on the applica-
tion. This shows that once an application has been submitted
.
to the bank, there will most likely be a waitin: period of
several days for an nswer, because the application must be
reviewed and Judged by the loan committee.

The considerations presented in this chapter are

strongly recommended to the reader.

CHAPTER V

SUCTDRY AND COKCLUSIONS

In this research the writer built up a case situation
by which he hoped to convince the banker to finance the pur-
chase of a restaurant. The writer presented his case in much
tore detail than most prospective restaurant borrowers would

have done. The object of this thesis was to give an in-

sight for the future borrowers in preparing their loan appli
cations for commercial banks. The borrowing procedur 5 given
in this thesis may by no means be considered perfect, but
according to bank officials they were an improvement over
the methods used by nany prospective borrowers.

Some of these nethods and procedures were outlined
in Chapter II and are as follows: to present a description
of the business to be purchased; to give a detailed inventory
account of all equipment in the business; to propose future
plans for the business; to present the plans for financing
such a venture; to provide the preparation of a cash flow
budget and the estimated annual operating budget with its
support; and, finally, to five the application forms for
the loan. With all these materials on hand the writer
approached the bankers for their consideration.

In Chapter III of this research the writer unfolds

some of the negative considerations by which the bankers

gave their rejection on the loan, the results of which moved

 

64

(7x
U1

the writer to make certain recommendations as outlined in
Chapter IV.

The recommendations outlined in Chapter IV may be
some of the most pertinent guides in presenting his case
to the banker. It is true one's confidence may be great
and it should be so, but to go into business without
adequate funds will prove a great disappointment. Not
only are funds important, but an appointment to a position
in the field of his choice should also be very beneficial.

In doing so this person avails himself of the opportunity

of experience and the chance of being better known to his
banker. There is no substitute for having know-how in busi-
ness experience, or in dealings with the banker. Let us
then cons der the final conclusions.

To consider the final conclusions one must take into
consideration the past as well as the present. The restau-
rant industry has seen and is often called an under—capitalized
venture. This is true because necessity has brought about
many changes in the industry. The necessity on the part of
the public to eat away from home during World War I and World
War II and the glamour of some food service establishments
produced recognition, stability, and financial strength for
the restaurant industry. Past and present experience re-
veals that the demand of real estate collateral for restau-
rant loans forced many restaurant operators‘ capital into

real estate investments. This apparent stability in some

x
('3\

cases curtailed the restaurateur's desire to proxote and ex-
pand his bisiness. Although the ever-increasing competition
in the business bear: a great pressure to keep in step or
fall by the wayside, it creates evermounting capital costs
such as fixtures, and brings about greater need for capital
funds. Therefore, to obtain cash, a new source must be
found. Such a source is the commercial sank.

Today commercial banking is the hub of our nation's
econory. Through lending, treater amounts of goods and
services are added to our national economy. To perpetuate
the crowth in our econosy, sound fundamental principles, rules,
regulations, or :uides had to be established by all bankers.
A man with theoretical experience and with no actual season-
ing in the business stands great chance of being rejected by
the bankers. While actual eXperience, plus theoretical know-
ledge are considered important factors by the banker, greater
emphasis es attached to the borrower's character, capacity,
and available captial. This evidence is in harmony with the
advocated principles of tne American Institute of Banking.
With these principles in mind the banker tries to find a
substitute solution for himself and his client. It is
possible that the past record of many of the banker‘s
restaurant clients has caused the banker many misgivings.
This situation was created by the fear that the restaurant

business is a bad risk, according to the banker's lansuaye.

 

Today, with all costs rising, greater is the need for capital

funds. Capital loans are used for the purpose of providing equity

67

in the business enterprise. The repayment of capital loans
is derived from profits accru ng from the use of such equity.
Naturally, fewer persons will have enough funds to go into
the restaurant business. Where, then, may the ambitious
enterpriser obtain enough funds to fulfill his dreams? One
source, clearly, is the commercial bank.

Therefore, a good understanding of the commercial
bank, its problems, methods, and procedures is of the utmost
importance for the future restaurateur. The comrercial bank
can be the bread and butter of the borrower provided he under-
stands the bank's function. It is also evident that bankers
begin to realize the tremendous increase in capital cost
outlay required in the restaurant business at present and in
the future. he bankers should then be willing to supplement
(to some extent) the ever-rising costs of opening a new
restaurant business, provided the proper arrangexents meet

with their tests.

APPENDIX

II.
III.

IV.

L9

TABLE OF CONTENTS

Profit and Loss Statement for Establishment (X).

Balance Sheet for Establishment (X).
Bank Application Forms . . . . . . .
A. Michigan National Bank . . . . .
B. American State Bank. . . . . .

C. East Lansing State Bank. . . . .
D. Bank of Lansing. . . . . . . . .

Answers to the Questionnaire . . .

A. Michigan National Bank...........

B. American State Bank. . . . . . .
. East Lansing State Bank. . . . .

. Bank of Lansing. . . . . . . . .

C

D

E. Mr. Steele - Detroit Bank and Trust Co.
F

. American Fletcher National Bank.
G. Fidelity Bank & Trust Company. .
H. Security Bank of Detroit . . . .
Letters. . . . . . . . . . . . . . .
A. Kr. Foster . . . . . . . . . . .

. Kr. Hays . . . . . . . . . . . .

. Fr. Reck . . . . . . . . . . . .

. Mr. Tharp. . . . . . . . . . . .

B
C
D
E. Fr. Bindner. . . . . . . . . . .
F. Fr. Wells, Jr. . . . . . . . . .
G .

. To Fr. Lee, Associates of Horwath & Horwath.

H. From Er. Lee, Associates of Horwath & Horwath.

Q) (I) «3
\1 r-J m

\0
v1

115
116
121

122

70
TABLE OF CONTENTS (continued)
we;
V. Letters (continued)

I. To Kr. Baxter. . . . . . . . . . . . . . . . 123

J. To Mr. Lee . . . . . . . . . . . . . . . . . 124

K. From Nr. Baxter. . . . . . . . . . . . . . . 125

L. Remarks from Security Bank . . . . . . . . . 127

VI. Speech by Mr. Hays on: Financing Restaurant

Needs. . . . . . . . . . . . . . . . . . . . . . 130

VII. Statement of Studies by Robert Morris Associates 145

VIII. 8. B. A. (Small Business Administration)

Restaurant Loans . . . . . . . . , , , , , , . . 143

'3)..JL._.J

u.)

 

/
.7 » 94 + .\ T ,a —. A 4. 4L < . - . - ‘ . A . ‘~ *~
:r3.Lt QJ..1flL*V .uatezent fil'lgfi WgriOQ OI
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tanus1. l, 1,:1; b3 neceLQer ,1, igtfi)

 

v.nni ‘ i
t yxwxrra. I 3. C‘ (’7‘ "‘"I‘W 71";
\. JL k )K n .1 ’ :1 s w ‘
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O C' J‘ A 0‘3 1 C‘ ‘7 1.1. A l/ ‘3 L 3 A ball C) \ I“ ,‘ ‘\ 9 :_ :1

ss inventary 1
Total cost

1 1'
. 71‘ \ (1 f5 wry-IA,
l K/ R, L.) -' x, i A

C) \L—a
”44,
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4 , A . . a H. . .‘ .‘ 7‘
ion on equip «rt s~~ -
r

 

,ESC.‘O
“(-’L1(E}(J 1,, 4_'~—3..
'”“r3 Fun azlwttnnancn: 1,8(5._W'
551-1?me 1,0714 (.0
CCflht1N“ ICFVlCE : 0.0e
City F? perty Tax d6?.‘0 ’
(JCilN,3f “Tax Tw§7.3;
11(WllSWF3 J3? P .(7‘ "TE?.:”7
111 “crip'en+ 1098 791.22
r,wses 177.00

 

, yeral expense f? fiTC,€7
Total arm {rUEMj cxpense :31,?OT.ZV
Interest on note ,IJ,,U 95 -
Opera in? profit 11 g ,
Ot er inco e (fluke box) :po
.54; iJCO:(§ lllfdh;

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r-u
(2

Establishsent (X

)

Balance Sheet as of January 1, 1956

ASSET°

Current assets:
Cash on tand and bank
Inventory January 1 , 1956
Total current assets
Fixed assets:
Fixtures and equipment 50,000.00
Less estimated reserve
for depreciation 17,250.00
Supplies
Total fixed assets
ioodwill
Total assets
LIABILITIES AND HET WORTH
Liabilities
Eotes payable
Total liabilities
Net worth
Total liabilities
and net worth

9,253.29

5.

.,157.45

32,750.00
315.00

12,000.00

 

11,410.74

33,065.00
1.00

12,000.00
32,476.14

44,476.74

 

44,416.14

 

73-
MICHIGAN NATIONAL BANK
CUSTOMERS STATEMENT

oArdW

FOR THE nmose or OITAINING cneon IN THE AMOUNT or Wm as umo IN 12Q MONTHS, To It useo FOR THE
amass OFWWQDAtWW
W344:-

 

 

 

 

 

I HEIEWITH SUIMIT THE FOLLOWING INFORMATION:
SOCIAL SECURITY NUHIEI
SINGLE w L Numu OF ,
NAMEWW As: -13. NAnIm_X_c. __._________oer£No£NTs __3 .__._

SELEC'IVE SERVICE 1c

WIFE'S NAMMWlfloMFT CLASSIFICATION
HOW PHONE .o.
”new LONG—5413:...NUMIEIIUOOQ3L.
PREVIOUS HOW
ADDIESW , mam
BADGE POSITION
NAME or mnovedidldfing NUMIEL-zfisgfi—OCCU'IED

Aooaess or WPLOYEWW No. or mus VVITN eunovegsm

SALARY on omen INCOME SOURCE OF

WAGE m MONTH rs MONTH PIS—MOTHER INCOML- .-.Infl21li__

NAME OF NO. OF YEARS WIYH

newous mnoudfilhflflfiflm maVIous innovmul

MNK ACCOUNT X '

cameo WITNW CHECKING SAVINGS._X______

mm W

*mruennmcss I.L._mai 2155:1911: 608 Wat

om. Adda.-

Mfimn LBJ]-
Adam

 

 

 

 

 

 

 

 

 

 

 

 

Nam.
IWW MAL
om. Address
ADOIESS OF PURCHASE IALANC ONTHLY
"ODE.” OWNED__—____._-_2----- PRICE L ---- OWING L_-:_==_.PAYHENT L=__._==___

 

 

 

NAME 0W IF IENYING

m LAN monowml MONTHLY IEN‘IAL MI“...
NAM! m ADM! £55 or NEAREST

LIVING RELATIVE NOT LIVING wIm YOUMWKLAHONSHIPW

LIST ALL lOANS OI DEIYS NOW OWING

 

ORIGINAL IALANCE AMOUNY DUE

NAME OF IANK, COMPANY ADDRESS AMOUNT UNPAID EACH MouTH

Oi INDIVIDUAL

 

 

NONE

 

 

 

 

 

 

 

——_

I HEREBY CEIYIFY THAT ALL STATEMENTS MADE BY ME ON THIS APPLICATION ARE TRUE AND COMPLETE.

 

SIGNATU IE OF APPLICANT

see supplement

I m 00 h"! PIVMN “II duo on NIL much monk.
It!

 

 

 

Iron

 

mnmnuau 7b
MICHIGAN NATIONAL BANK
1%“de

ADDRSLJJQWMWWW
BUSINESS—JWt Dan or Srarzuznrw

 

 

 

For the urpose of procuring credit from time to time, I furnish said Bank the following as a true and complete state-
ment of my financial condition on date stated herein, and agree to notify said Bank immediately in writing of any mate-
rially unfavorable change in my financial condition. In the absence of such notice or a new and complete written state-
ment, this is to be considered as a continuing statement, and that my financial condition has not fallen below the status

herein set forth.
Fill all Blanks, Writing “NO" or “NONE” ’Ler: Necessary to Campletl Information

 

 

 

 

 

 

 

 

 

 

 

ASSETS ”ABILITIES AND NET WORTH
Cash on Hand and it nuke , 4 ;LBL Notes Payable—Banks—Secured ,1 ]
Marketable securing. (Schedule A) S 00 Le Notes Payable—Banks—Unsecured /
Accounts Receivable Notes Payablecfiquipmenp ‘
Notes Receivable Notes Payable—Other; /
mt Chin at; flashy? Accounts Payable L

 

 

Taxes: Income and Property

 

3+ 11mk

 

H»
3
Fl

 

 

Mp1
ltmww

 

W

I
i

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance—Cash Surrender Value Loans on Life Insurance

TOTAL 0113an assm 16 ”51L , TOTAL CURRENT mummies /
Mortgages Receivable
Real Estate Sold on Contract (Schedule B) Mortgages on Real Estate Sold on Contraan
Real 15qu (Schedule C) Mortgages or Land Contracts on Real Eu.» /
Furniture, Fixtures, Machinery 1]
Automobile- /
—— TOTAL LTABILITIEQ
k Net Worth 6 371 TS

TOTAL TOTAL

 

 

 

 

 

 

 

 

 

 

Sources of Income—Salary 815mm... Securities fim Real Estate 5 ---- Other W.

 

Are all bad and doubtful assets excluded from this statement 3J0;

Life Insurance—Amount SW BeneficiaryWL
Names of Insurance Companies—WWW
W1 " 200:00 ' ' ' ~ _

Total L.-----

 

 

Fire Insurance on BuildingL --"-"-"

OThCI’ In‘urgncp --..-------

HO

Are you a partner in any firm or affiliated with any other business?

 

Are there any suits pending or unsatisfied judgments against you? REL

A“ y 0‘" Wax: payments up to date? 80 MOILgAELOB - - f #4

 

 

H": bummer proceedings ever been commenced by or against you ?___.Ea

 

 

 

iHL SinglL Married 1 Number of Dependents :5

 

 

1.5

 

 

 

BOREDULB A .. 870GB AND BOND!
. or manta
nasal ow resume comm . (II- m) nsoim IN asassstn more
”so m or oecunnv race VALua ms or vaws men
in none.)
5 WI:

 

 

 

 

 

"new f
M

 

 

 

 

 

 

 

 

 

Unlisted
WWWQQA .

 

 

 

 

 

 

 

 

 

 

W . - RBAL ESTATE 5014) ON CONTRACT
HONJ‘T‘HLY
oucmrrlon AND LOCATION OWNER or necono £1303. .‘ififlg. snowman" c'onrnacr
4 c s .1 Is

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE C -- REAL “TATE
PURCHAII mutter 0"” 0" Homers or NORM: NONYNLV
DISCRIPTlON ‘ND LOCATION OWN‘R 0' RICORD PRIC‘ VALUI IOITMC‘EI 0‘ CONTRACT Rm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ca) ' e - .
"m” mam“ For «mi or threntened litigation?

 

For notes receivable discounted? ;
Foraeeommodationpaperorendorsemmtsforothen? 3
For leases? __;:
H." you any For notes exchanged with others? ' '1 k
M 1L
$—
4

As (star-aster or bondaman?

*-

 

A

Other than above specified?

WMtdmyfinmddmnditbnnof—lum
. (DATE)

DmSined__1A 1m. 3955 '

l. the undersigned, hereby certify and declare that the above statement and representations constitute a true and

 

Winnk Name
I n , ..

‘

 

 

[I THE Nl

i mm c:

’ Iilf‘s‘lH

IIUEJ
'l‘ll NAN

was;

was
mu

lWIECFE

|
CHESS 0

[I'm 3|
use ‘3

I "III ::

‘l;'I L: I

I" I:
.‘ll E: I

a“! [1".
. '.I 'W

 

MICHIGAN NATIONAL BANK
CUSTOMER'S STATEMENT

,, DATML
tor THE runose OF osTAINING CREDIT IN THE AMOUNT OF Wm sE REPAID IN___120_______NONTN5, To sE useo roe THE
runoSE osMWnnmxfiemWW

WW:

I HEREWITH SUIMIT THE FOLLOWING INFORMATION:

 

SOCIAL sEcuaInr Nuusea
SINGLE w. I Nausea or

AGE _.4Q. NAIIIIIEIL. .. ,Mc. ________,____ DEPENDENTS ._}____

SELECTIVE SERVICE 10
DRAFT CLASSIFICATION

HOW PHONE
Io~s__2_me._._uuum_11_5.=l&49__
HOW
LONG—gflfl

IAOGE
NUMBEL

 

"MW
mm MW
ADDIESWIL
PREVIOUS

ADOIESW
NANE OF Ewtorewi
ADDRESS OF EMPLOYEW—m—“NO. or YEARS erII EMPLOYEL___._____
SALARY OR OTHER INCOME SOURCE OF M

We“ MONTH Mme: INCONL__E"'

WAGE PER MONTH

 

 

 

POSITION
OCCUPIED

 

 

 

 

 

 

 

 

 

 

 

 

 

NAME OF NO. OF YEARS WITH
PREVIOUS EMPLOYER Hana PREVIOUS EMPLOYER
IANII A c
CAtaIEoC w‘ii’WjLBAnk CHECKING X sAVINes X
IIIIIEE menus
on "ADE tErEtENCEs IW (30- m
Name M
It
WW CO-
eme Address
Is
thca a
Name Address
ADDRESS OF PURCHASE IALANCE MONTHLY
nomrr OWNED—lwnn JRICE t OWING s________PAmENT s...____

 

NAME OF MORTGAGE
HOLDER 0R LANDLORD

NAME AND ADDRESS OF NEAREST

IF RENTING

lMONTHLY RENTAL L

LIVING RELATIVE NOT LIVING WITH VOUWMWIELAUONSNILM

LIST ALL LOANS OR DEITS NOW OWING

 

 

 

 

 

 

 

 

 

f NAutasonébfiorrAnr ADDRESS 3333?? “3323 €333.23:
I ISIS!) tanning 12500.-‘ 7200."-
. I.' J - eooo.-- 595.“ rud_
i .L— II 300mm #90." Peidw
n I l I .. 269Mggoo.»

l HERERY CERTIFY THAT ALL STATEMENTS MADE BY ME ON THIS APPLICATION ARE TRUE AND COMPLETE.

SIGNAT'U RE OF APPLICANT

m catamarans“...

'Wbmmmmuumosh
3-!

 

 

 

 

 

‘fiv ‘—

77
MICHIGAN NATIONAL BANK

NAHLfijLWQw-l
WsWW
BusmsssW Shay DATE or STATEMENT—ML—

For the urpose of procuring credit from time to time, I furnish said Bank the following as a true and complete state—
ment of my fihancial condition on date stated herein, and agree to notify said Bank immediately in writing of any matev
rially unfavorable change in my financial condition. In the absence of such notice or a new and complete written state-
limit, this ’i' t: be considered as a continuing statement, and that my financial condition has not fallen below the status

ereIn set on .

anIIVIDUAI.

 

 

 

Fill all Bin-1:, Writing “NO” or “NONE" It”: Necrrury to Complete Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS LIABILITIES AND NET WORTH
Cash on Hand and in Bank- A Son Notes Payable—Banks—Secured !
Marketable Securities (Schedule A) Notes Payable—Banks—Unsecurod
Accounts ReceivablL Notes Payable—Equipment
Notes Receivable Notes Payable—Others
master-L 500 00 Accounts Payable
WW Taxes: Income and Property
___Ialue 18:5 011
L“: Insurance—Cash Surrender Valm [nails on Life Hume
TOTAL CURRENT ASSETS TOTAL CURRENT LIAIILITIILS
Mortgages Receivable—mmmt 8 850 00
Real Estate Sold on Contract (Schedule B) M0398” 0“ Real Estate 5°” 0'1 Contract 2 6 m
Real Estate (Schedule C) 17 000 QQ Mortgages or Land Contracts on Real Estate 1 Lm
Furniture, Fixtures, Machinery ll #50
Automobi 3 850 00
W 5 O 00 9
TOTAL LIABILITIES
_ Net Worth 55 g
m“ 54 933 00 "’0'“ 5a 93 oo

 

 

 

 

 

 

 

 

Sources of Income—Salary 8.144933 Securities 3—422—— Real Estate SM Other M11.

Are all bad and doubtful assets excluded from this statement? HQ

 

Life Insurance—Amount $_1R7m__ Beneficiary—.1118
Nlmes of Insurance Companiewmwaww
“macaw“

Fire Insurance on Building; -- Total s 209°0r~~ __

Other Insurance_21:.n I 25m.QQ, Llflbillt! 50009.91

Are you a partner in any firm or affiliated with any other business? 50

 

 

 

Are there any suits pending or unsatisfied judgments against you? no
Are your mortgage payments up to date? 31L
Have bankruptcy proceedings ever been commenced by or against you? ‘29

AIL—39.....— SingIL Married I Number of Dependents 3

 

 

 

 

 

—F —l.__—____l_r_~_z_

 

‘TII

 

78

monaammsom

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.
Iskmmmfihuddedanmtfie'aMemwtdWWatmmd

“magnesium-or

 

 

 

 

 

 

muse 'noIs ”tam—r“ an"?
”anew m '12:" 3'35: “'1313'53 m In“... an...
M A
Unlisted
Z
/ -
WluRBALES‘I‘ATBSOlDONCONTIAC’l'
Deccan-Inca AND LOCATION owns or neono .33”ng .‘L’fiflg. non-roan: gomn'iaLdrr
W
W on
SCl'IBDULB C -- REAL ESTATE
oaocmrnosr ANn LOCATION «man or aecono ”33$“ '33:?" m: ”wggui‘w‘“ Wm"
M JoinL _. "" W
W Et-e
I For noses receivable discounted? 4
For accommodation paperorendorsesnentsforothersf 4
For lenses? 4 4
Cummt'mlnw. 1 For noses exchanged with others? 9L
As guarantor or bondsrnan? ;_
Other than above spocifisd? A L

 

 

 

(oars)
Dmsw‘m 3;. 1955 ,
wha_ None
u

M

 

 

4.._____..J

 

N -

 

 

susmnss . 79

MICHIGAN NATIONAL BANK
N Au g—SIWW

maungmjmeWMLQMgan
Bvsmuallm Shay DATE or STATEMENT W

For the purpose of procuring credit from time to time, the undersigned hereby furnish said Bank the following as a true
and complete statement of the financial condition of such business on date stated herein, and agree to notify said Bank immedi-
ately in writing of any materially unfavorable change in such financial condition. In the absence of such notice or a new and
complete written statement, this is to be considered as a continuing statement and that such financial condition has not fallen

below the status herein set forth.
Fill all Bleeds, 'rt'tie’ ‘NO” or “NONE” Where Necuury to Complete [afar-arise

 

 

 

 

 

 

 

 

 

 

 

ASSETS I LIABILITIES AND CAPITAL
Cash on Hand and in Banks is 8 500 Q Notes Payable -- Banks i1 I
Marketable Securities (Schedule A) L_ Notes Plylblc -- Merchandise f I
Accounts and Notes Receivable : , Notes Payable -- Others 7“

 

I Accounts Payable (not due)

 

 

 

 

 

 

 

 

 

 

 

Accounts -- Current 3 i

Accounts -- Past Due 4 : Accounts Payable (past due)

Notes 5 ,; Dividends Payable 1
Total n 1 Reserve for Federal Taxes 1
Less Reserve 3 L Reserve for Other Taxes /

Inventories
Raw Material 4

 

 

 

 

 

 

Finished Stock 3

—— mml j;
TOTAL CURRENT LIABILITIES

 

Work in Process ___s_500.00_ {
’ I
/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS
Land m Buildings Bonded Debt (due ) ' /
Land fig Mortgages Payable I
Buildin‘. 3 Long Term Notes
Total _§ __. /
Less Reserve 3
Machinery & EquipmgnL Ls

 

 

 

 

Less Reserve MA W1! 11 4:5 i ]
Receivabler-Oficers & Employees (Schedule C) TOTAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

Other Securities (Schedule A) 4 Capital SM .. Preferred IL
Due from Subsidiaries & Afliliates (Schedule D) Tl C'Pit‘l STOCK " Common
' Surplus and Undivided Profits

 

 

 

 

 

 

 

Net Worth (Proprietorship MM) mIrOSQ 00
TOTAL 20 45 odl TOTAL 2049160 00

4

Are your books audited? 4“ __ By whom? M Date of last audit? W
Were above inventories actual? nn.__ or estimated ?_-:_-_-__.By whom? Mr
Date of Inventory?

W
what rate of depreciation do you charge against buildings ?__Rnnn._____, machinery and equipment “fix—MIL?

A" any 0f your assets pledged as security for loans, advances or other liabilities? HQ State details
E W

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

. INSURANCE CARRIED
Plant and Equipment Insurance W Life Insurance payable to W

“Wadi” Insurance 14 QQQu Credit Insurance ---- $ -------

U‘ ”(I Occupancy Imurm 3w— Lllblllty Insurance ...___._nI.I____$_l -

 

 

 

II we L a I

 

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT AND was STATEMENT RRGONCILIATION OP SURPLUS OR NET WORTH
’1. M4955 ts W193!) Iron 19.... b ‘2 H...
In: sun. for Period W Ourplus or Nu Worth L n s 22
I... Cost of Goods sou M Additions:
0.... Profit 3 9892528L Nu Tue: 5.: emu s
kpsnsse: . . 3
Salaries - Oficers 3 5
Bshries ~— lnsployees 4 9
Taxes (eacl. Income Tax) 2 Total Additions 3
Bad Debts 3 Deduction:
Depreciation 2L . .Net Loss for Period ,,
Tod“ Itasca-u 3 .1 90??5:B§— Cash Dividend ma 3
rm Profit or Loss from Operations 3 11M. Stock Dividend m4 s
cum Income s 2122 :21 a
Net Profit or Lose (Before Income Tax) 3 3
Incense Tax S Total Deductions 3
Net Profit or Lose 4 W Surplus or Net Worth on Statement ,1
SCHEDULE A - STOCKS AND BONDS
No. or sHAnu
NM". or IssUINo CORPORATION (In omen) REOIBTKRID MARKET PORTION
ANO TYPE or sacunt'rv rAca VALUI IN NAN: or VALua PLIDOID
(It seems)
ListelL 'L
UnlistelL
SCHEDULE B .. REAL ESTATE
cascnII-TION AND LOCATION OWNan OI- nacono ”£5121" 'Cfifi? 323:3: "°L§:"cg:"'fig“‘°‘ “2'33,”
OI CONTRACT
S S 3 3
SCHEDULE C .. RBCEIVABLBS DUB FROM OFFICERS AND EMPLOYEES
NANa posmON AMOUNT 0'6iirléAL NArunmr HOW sacunao
S
SCHEDULE D .. DUB FROM SUBSIDIARIBS AND AFFLILIATBS
NAM: Anonaes ron AOVANces ranuo rose uancNANOIsa TIIMI

 

L

‘”

 

Y

 

 

 

 

 

 

r F or notes receivable discounted?

 

 

For accommodation paper or endorsements for others?
For leases?

 

Hm m “" ' II o It a:
Contingent Liabilities For notes exchanged with others?

I" or actual or threatened litigation?

 

 

As guarantor or bondsman?
Other than above specified? A

1’} 1» 1P 1P 1» 1’1?

 

 

account of the financial condition of such business as of __
Date Signed __ 1.1111812; 12 1956 . Name W 52199

The undersigned hereby certify and declare that the above statement and representations constitue a true and complete

 

 

 

( TITL!)

 

 

the

aid

l'l

>ne

) n1

:

_ a mu uh uh mu

OJ.

FINANCIAL STATEMENT To _____coaeosArI0N
___...JAITNIISHII

Iconfidcnm“ AMtaIcAN BANK ANo rausr COMPANY -LLINIIVIM
Lansing, Mich.

uwu_GaanginnLILLJhmmnnnldeuL. 3LafifififlaLjuuyhnloniEEIHUMmaL
o a A... '7 son recs
IUSINW ant - 11.5.1] a __,_ ; W {j Not Registered..._ __.... _ __. -Add
'00.
S‘I'A'fmnfl' As or III courrrv or;lngh.am_____ ...____.._.

(Phone answer all questions. When no figures are inserted, \vrIte vord' 'none’ or ”0' l

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33——- " -.._. f.- 5 '121-7 "7-3--—-—- --1:“' —~ -——- ”-r.”..- «1...; -* -32-- _ ...... __.-.. ___:_;_ .-.;.,-_ ._ .____,_: .- .1“; :;."- " *r'" 3;... ____.._:::::._ wflflr—wwzi
I ASSETS j. LIABILITIES 3
II 3 I
I. l' .
C‘ on Head end in looks 3‘ 433 33a 31 Notes and Acceptance: Payable tor Mdse. (Not Duel ,“3.__3 3
Hot. and tones of Customs ‘ i MM ' Ii
wake DoeVitb this N Doss l'n _ 3_ __ Notes and Acceptonces Payoble tor Mose. (Post Duel ’;______ I
HotesoodA tnc etc toners 8 a 33---_.E. ' -_ i a
O C U _s - , 3, .
3 Mid.“ - 0" w ’0 9'” Egg 1 ,___ , ‘ ___; __ ‘ Notes Due to Ionia, Secured S.__.._____. Unsecured L ..... ___.33
Accounts Receivable et Castorsors - " ‘ v .5
, C0830!“ Mp NOT '0" 0'. gig ii 3 3 33_ -3__3 3_' No.“ D“ to om" 0' mm '»____3
5 Accounts Receivable ot Cuteness ‘3, i "h 3.— - ., 3.
.5 Considered Good, '0" D" g l, ,_-- _ ,_ 3 __ Accounts Payable (Not Past Due) ‘ __---.3 ,-
l I '5 l ’ 3.3 .
33 Mh.—low Material ("on Vol-ed l ' , , 3_ _3 ,- - 3 Accounts Payable (Past Due) f3____... j- W:
l. ,3 Accounts Payable to l
3; Mia—ls Process (New Valued l l -22, ___; ,, ,- _ Partners, Officers, or Employees 3-3__ ; .___3
3i Men—nuance um Volts-d ,» 3 _ __ - Federal Income Tea Doe s_._..--_. Past Due s____ ..- ,3 ,-'; ___; f
i u, s, an...“ “arm” Accrued Interest, Other Toaes Due. Dividends Declared 3f ,____ 33_ _333 333 2.-”
l H Mortvges and Other Indebtedness Due ' 3
. Other Current Assets lltesslael _ .H. _ _ , 3 itbin l2 Months In L- .__L. ___ .per Inc. ; _wa
I

 

WLWL 3 H5 9(EL-zz3 __.-._.___-._--.__- ”-2. ._

Other Current Liabilities ”tenure!

TOTAL cuaatNr ASSETS '.l%_'§1.lli3 ___- . ,___s--.--n___, .-4,--7--___:2 2 - - ..

13
ii
1
H
EN
5;
if

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

'3 “NMACMdMnn.Ofllcers,ond0tbeI-s :3._.___3__.- .._.3;3 --.~ -. __.. ..-- _ e _ ;_ 33 '3 '

3 I...“ a“ m” ,, Am“ ., 5mm, Cum” 3 _33,_-__ i~ TOTAL CURRENT LIAsILIrIts .3 E

3i 'M“gi:.?' m3.“ M (Complete U" M." Accompany . _3__3_ 33__ 3 33 3 3_ _ ‘ Mortgages on Reol Estate (Other Than Abovel i3»* 33-__ _ 3:

3’ 3p ' Chottel Mortgages and Lease: on Machinery and '5' '3 .3
3‘ 3 *__ _H; _3_‘_ _L._ _A ._ -_ 33 Equipment lOther Than Above) 333_3_-_33__3337(3__J33
333 w. _333_3__ “3;, _3 31 Other Liabilities, Not Current (Describel I33 3-_-;', _-_3 ____3 3
3' “N. N" look Value (Assessed tor L-_-,_-,-;-;-_.,__-l 3; -‘H -__ ;_ _ _ 3 ___m q_3-3__333’3___3__ 33
‘i Isildings, Net sou. v“... than for s.-__.___2 _..I 333 __. - ~ '9; 7 :—~ :~ -~-— — —~—- ~- ——-~>----- - ~- - ~-——- ~- - “—49%; l ”3
3i Mochlnary ”a run, pm 3..., Val... 3:_ _ TOTAL LIAsILIrIts :3l' ' __‘3:
3 Furniture and Equipment, Net lock Value i - - - II» — ~ ~ —— —— » «a'
3 3 33 3 3, 3 3,
ii 'Ohlll. film, 0“ Mill ' _ W a ' I. " I NET WORTH llt Individual or Partnership! " 'k "
3'3' ".0“ m ' T‘ ' “ “" ‘ ' 3 This STectIon To 38¢ Used Only It a Corporation, I"3 -_._ ,. eff“; .._

33 Other A...” llteuiael 33 3 3 3 0 Show Distribution ot Net Worth. 3“ 3 3 3333.3 3

i ~ i3 _ i 3 Capital Stock, Common“... ._.,L_..Sbores 3.... -r.- _ _ _. :LPar II I i

ll 3—‘3-3:33.-.---_._._... M __ “T “i V N -:_ P If” 3__3 3_3 , Capitol Stock, rnIumI_I__.,.__._.~ __Shoees s ,_,_,__ , _ 3 mpg, 3 M I "*3
3' —~ .0 - M- -_ m- I V _ 7 .22.:33 ‘ i 3 Surplus 3' . in --- ”b~v i
3 -._._~__ """"""" " "" "‘ """""”' “ “I" " i" _ ' Undivided Profits .i ’3”"‘“l‘“‘“"3
IL; TOT“ “5m 3 136 111151;;- 33 333 tori};3I3L333I3As3ILIrIt3s3AN3o Ntt woerm ii lam—15:

 

 

 

 

 

 

 

 

SUMMARY STATEMENT OF PROFIT AND LOSS FOR YEAR ENDED 7-.., --..-._.--_.._

 

 

 

 

 

 

 

 

 

 

 

SCI. Met) _'__3____: Gross Profit on Sales... A. m — I ..,-----~-. «__.4 Net Profit on Sales.“ ,_-; “__-- :,___/
Octet: Cost .9 Good 5.“ mi 0.4m: Expenses---“ ._ -. - .---3 Add: Other Income.“ --..,, __. ;; ' '
Gnu Profits. “L 0. ,; I a: 3 a Net Profit on SoleL- . . : _.- Z __.. Net Income-.. “Wm“. . ., .__;_

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMOUNT or ANNUAL SALES FOR CASH s ----—-_—~_,~W_ - .._ AMOUNT or ANNUAL SALES ON cutolt $4 . __-:2?:f'-3_
GC3ONTINGENT LIAMUT'B: ' M91‘“.A‘I:eptsrlccs ond Accounts Discounted Sold Pledged or Assigmd 3 ---_.__
I'M" "0". .00". Accounts or coneroeL;__ ---- __-“ ____ _3_ ___ _ _._..-_____;_____ 3—333-- 3—3-3333‘333“-

A" are. c°Was-«t Liability (swam __3 3___3_33_ __ 33_3_33__3 3 3 __333_3_33 33 3— 33—33 “3-3—3“ .-._-..__._ 33 _;_3_

7""- CONTINGENT LIAsILIrIrs___;,_ ,3;_ ---_-_-__N 40.51}; _ 3 _ 3 33 33__ 33333—333 h.” 33 3
”mama“ "" Mm“ o- Macho-am s.__..-_---- - ””2.” ___ _ __ _On ““3333" "33 “3333333333333 33 33 33 3333333“-

OI .Iildlnga T.” -—~-——~- ...--, _w- GCMI’OI Liability Insurance $_._ 33 __ ___3_ --- _3—33 ..-_..____,__ “3-333
333‘ Fall "cues of All Officers, Directors, Portners or Proprietor. It Ito—YELEZte fugiti'?‘ .55“??? 33.3.3357“ 3 3 '3 9131;?” 3333 33— 33 3:13.433”: 32:13:33.3;
K“”““’“‘““ __-__--_--,_; -- ~-----~---- -- - ~ - -- — 3 . _;___3 3 33333 _333 _33
.N " ‘ ' ~v-- ~: - _ - . 3 _ 3 3:33 _ _33 3 , -—-— -—-..____
CN‘- — V .' __—- -F._‘_“--'-—-— -'_.—. u- . 33 3 3 3 3 -— 3 3— — -—-—-“_.
0‘.“ .m- ”-m“ - - — ”w —_ T "’ w; - - _ I _ C: 2; m '3“ ' i “ __.. -.L-__~_______
[_“___3 3 u 33 3 333%
.;__:~--——— -- -— ~-—~ _ _3_ : ; _3 _3 3 3_3___‘3

82

DETAILS OF LAND AND BUILDINGS

ENCUMIEIED

TITLE IN 3 CURRENT
NAME OF 3 VALUE

I
I
___- I
I
I

ASSESSED

DESCRIPTION AND LOCATION VALUE

 

7mm“-

 

  

 

 

 

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SOURCE OF INCOME PERSONAL INFORMATION DELINQUENT TAXES
hlsry . . . . W lair-en er Oacnatiae Works for Age Sales Tax yr S
Ion- and/or Caren. Links—___ MIL—___ Mn Save -19.”. Income Tan yr..._ S_._..____.
Dividend . . . LQQQZS___ Partner or officer in any other venture Property Tax yr
Reel Estate Inca-e M WW1-_HQQLLJQQ*”L___;W Other Tax yr.
Wife‘s Name 2
Other Income .VAleBfi-L— It Noam.“ Children
Total Incorns . . SW" Single "-r A h 3

SCHEDULE OF LIFE INSURANCE CARRIED
Cosh Surrender
Value

 

 

 

*H

I

 

 

 

 

 

Anount None of Company Beneficiary Loans

WA V1 1:9..- 1011--

50m... " " " " --- _-_-_

We " ___. __ 4-; 737 _

I -—--
W --_--__-

SCHEDULE OF SECURITIES OWNED

 

 

 

 

 

'Ifiii'tt‘é‘r‘PW” IES O to 'I “‘“n r'i'c‘iacl'x'fria ' 'ro wIIo PLEDGED
HAIES DESCRIPTION or SECUIIT vim . M
Isrocusi I VALUE LAST me

so seams-3m .___Co 5; 15655506.; 2:359; .59 -9_z_ze-_ ._-__-
‘4‘_wma_xom_cou_§ommonm- .----_; _-390.. ___-__.; ___-___ _
leaertu

 

 

 

 

 

 

 

 

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M MmeWm mum ;_

GENERAL INFORMATION

An Accounts of “any legalarty Audited by Independent Auditor? -g_9__NanIe of Auditor '"""" May We coprm?____-.-_____
D". it Last Aedit- ------ When Does Your Fiscal Year End? "--"-

 

 

 

 

Hoe Otton Is Inventory Taken? 1..----- Vhen Last Taken? __ __

 

What The of Year Is You Inventory the Heevleet? """""-"' “W." __
'het Are Your Usual Sale Tor-s? -_2__=---"-" Purchase Terrns? "'""""""""
An Al led and mm mm Excluded no. no Staten-ant? JO_

M An or Your Ann rum to Secure LWUMPJQ‘IIPM
AN Al! Salts Pending W You? no To Your Knowledge Are Any Suits ContenIplated Against YM?JQ

_~

 

 

 

 

The endorslgned, For the purpose at procuring and maintaining credit with your bank on negotiable paper or otherwise, hereby furnish and warrant the tollowing facts to you,

thank: and truly m the “medal condition at the undersigned M 3 ‘07 °’ . ‘9 v (“WM the “7 h k" W‘-
h N Of the statement wlli be taken for the day), which facts and representations you can consider as continuing and remaining Full, tree and accurate unless notice at change
3 you, and m." is “up, 5.4., to notify you promptly at any change in financial candItIan that Inaterialty reduces the pecuniary responsibility at the undersigned.

I co-idoration at the ronti at credit the undersigned agree that in the event at failure, insolvency or cornniitting an act of bankruptcy; it any at the resentgri.
t“ are “"30: it the undersigned oil to notify you In outing at any change as before 09"“; then, 0! ‘I either case. 0" OHQOUOM 0"?“ undersigned held you shoal:
“an ,NIY become due and payable without dornand or notice and the some may be charged a (“net the balance of any ecco-nt to the credIt at the undersigned with you. A
Inertia Ila-“Luann, .5". on any balance on mu to the credit of the undersigned; aso chases in action, tro- tIne to tiers existIng, to secure all obligation at the
“w you.

 

 

Itll " 5 hereby W agreed and understood that In the event we make application for Further credit or tor the renewal or extension at any esleti Indebted
“0“ he as val and binding as it delivered as a true and correct statement at our financial condition on the date such terther credit, exteulon neuter-seal saga

 

 

 

“1 noted.
DATE SIGNED
I NED
S G Corporation, firm or Trade Nana _
w:— ‘ ’ Is 56
“husk
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WM
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FINANCIAL snrmwr 1°83 ___..conou'mu

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

' ___:Amuum
‘Co-Mm" AMERICAN BANK Angnusr COMPANY 1 my...“
- Lansing, Mach.
wuL__fiilflhln_QA_Andnflfld1§_A, 1002 s. Pinfi_fijnggi‘_Llnlln‘+_nigh
”A G O D D 300‘"ch Alta-
MIIJJQMQ 43 an - _ . .
mm A: o! n comm «_Inshm
{M can all m. no. no hours on ins-nod. wm turd "not" or ”0"
ASSETS LIABILITIES
‘,
“um-dbluh 8 1309 j! NotooadAcapthonM-MMJMM)
a“ at.” of CM v i}
W Jami-900m .‘ mummmeAn-nm
m at A m at cm 5 i
W deflm ___,w,___, MMMNM,M$__W;_
M
emu-mammoth». g; HONDUNOMUOH‘M r
Ana-uh W at cm I
W Good. M 0-- , Accent: Payable mot M om
“ W (M V '“ ‘ ) Account! Puebla (Put DI.)
Man-h Puebla to
lbw-h Pu. (IO-v van-41110111813.» ___.wg Q Mun, m I! W
Ina—w (MVL‘ . A _ ! rwnxumruuL.._mo-og
.me ummflmroummwufi
WW. and 0050! IN DI.
”mutants“ ‘____ MIZMonmflF—d-O-
hm¢£mnmmL ngflLlhflmmmLflg, ngme
W 8 650. _9_g Otis Comm thilitia (Iranian
g_mAMLHM&_Lme ; gLMLm
TOTAL cuum mm 1'; 850 '
N00. and AM 00 PM ”but, and Oil-n
m .1 Am .0 Anna or sat-um Cue-nu _. ‘07“ concur ““"Jm’ r—QuB-Od —04
'W. M)“ In. (Cowl-to Lb! not Accompany . __- . M I on loo! an“ (OM Thu II )
I Chanel Managua“ bummed
_‘ Equine-t Other The. Above)
_ ! om: Liobilitia, Not Cum: (Dewitt)
Lou. use Int V0... (An-d to: s...___.__.___) 11 QQQ 43d.
W Nut lat Vobu (w a: ,L » V ,3, _.-

 

 

 

 

 

 

 

 

W and tools. Nov lat Vol.3 IL ‘ 3‘ TOTAL LIAmmB 9 mm
halt-n a We, me look v»... [111450 NE

M u ___..EI #41 pm wonu m um: or PMI.) M _QC
m h. "w‘i”_““ '“I TIN: 50¢th To In Us“ 0. I! 0 Com“... :=‘=====

u.- Dumb-1m my
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~35L3umunJHlmm; 38a) °Wflmm9 —*"L—~——"
i W '4 060 cam: 3m, mums-u 3—..-___._r.c

 

 

 

 

5 0.45ku mm:

 

 

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SUMMARY STATEMINT Of PRO"? AND L055 ’0! YEAR ENDED

? M mu. ASSETS 59 AjQJld p TOTAL (UAIMJYIB AND NIT mm) 3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

u- mm‘ L 5872? 60 5... mm .. hmj12822‘i‘ nu mm on an %L%
Haven-rue...“ 10591—15— wuctz; L29775' th' 22
' Mons. _;..-_ g 3' Methane-Sam.“ ‘4' 1', Him—_m_ _._.__._
won 0! ANNUAL nu: m can I 55?" 27 fl moon 0: ANNUAL sun on can" ~‘ 0 . - __
'NGENT LlAIILlTIBr- in. W and Accounts Discounted Sou..- "do“! or Adam! 9
Whmnmmmuucw‘ + U.-- $—
"' W “IN-0M Lia-bum (Spam """"‘"""""" $—
707» com """"“ :—
INSUMNCE> pa... ”ftgilAmfllleIBi 500 Of) WWWOI Machinery and W MP
.- Ida... ; IEWMI Liability Imam L—SW—
"' "a- d An once-s. um. pm or W. n rm. so... u Gould. Sadat a Lil-ind o l’f I 1 b ”m 3"“. I“
‘s‘ ' ._ .,____.
l‘ ___.
f~——— ..nw——«~-- ::
5* __. __..“ -m... __....

 

 

 

__.—~- 5.._ c——-—— “1*

DETAILS OF LAND AND BUILDINGS
I
I I
TITLE IN ' CURRENT ; ASSESSED i ENCUMIEIED
NAME OF I VALUE : VALUE :_.._.”l 66'3""? *— TO WHOM

- -flm--— ._..—-—--_— 4. , A- -v ._ . __-___.,—..- ——‘ ——--—«——-—»——~——.-— ..- __.--. .. --’..__—._.._..__.._,.- ___‘w __.,

.W F ' Bungalau- -._ ___ .‘Z____-_.__,,_,!§,_-- -: s,__ ___ .L____--__,r__ ._ m«-,______.,_.._-_.__-.,-,_,__-
$1.0. team .. .- 77-.--.. -01 t 11000.00 -_.__6400.00-1200.-;£rndan1.1311mm.-.,_ .

._-__.,,_ ' .-__._-

 

DISCtIrTION AND LOCATION t

___... - r

 

 

 

 

 

 

 

 

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——-- 7‘ ,- - ,__,_,___ —--- -_..-_ -_._...V~d_._-..—— -.—.. .— ---. «_—

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I ___—‘l—m.- .— a” . ...E — .. , -- -- - . .. t -A——-»——--——- —| __ "__.—.—.._— —-_ .-- —-———r.—-————-‘—- -——~——--_ ~—

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.---. ___.-.__._..-._ I.-._.__-.... - I -L. ,_ -. _,__ __. -I--__...._S-_--__I--. __ _ .-_. . - __. -. __. - .__

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__- .-.-- _--.-.-__l..-._......._--. . _ - _ ,, . - .-_-..

 

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SOURCE OF INCOME PERSONAL INFORMATION DELINQUENT TAXES-
m . . . . $7359.99... nus-ea or Oct-porn. nom tor Age Sales Tel yr
Ines and/or Comm. ,1 W... _.-_§§11..-_ .._-____.-.-___ -_.-__ J9.-- Income Tax yr
‘rvitends Partner or ottlcer in any other venture Property Tax yr.

 

 

 

Isl Estate Income 5m... ..._._ ..-_-.___.__...___ Other Tax yr
Wife’s Name . l

M Income . . 31.06.6411... it Married—flam—_.__. CDIMNK—_._- SH.

Ital Income . . SW Single Dependents--- L..- __....___,._..

SCHEDULE OF LIFE INSURANCE CARRIED

 

 

 

 

 

 

Amount Name at Company Beneficiary “hi/131"“ Loans
1000.00.--_..--_.£atr0p011m._.____..m1-I.-- 206.00 1/
500.com...” ma " _. _-._._259.00 / ___

 

imam--- .,_. ”NeLXQrLLLm - " . - “JAB . 00 / -. ___.
moo--_-_m,.mopa _ .. .. . " ._______o.oa /

,..- -_. 3/

$000.00 Nat, Service scusouu'br SECURITIES ownso 0.00 /

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACIVALUE (BONDS)! mun i INCOME .
«mm or SHARES , DESCRIPTION or SECURITIES ownso VALUE I RECEIVED . TO WHOM neocm
_ (STOCKS) I _- __ : __ _ -_ .. i__LA5T YEAR“ ___" __ _
, .s :s 9
_-_--_ y _ _____ "i ___.___ .« ”__.__ _ _ - . _- ‘ _ __ --
..- .._-_i,__ _--_ -_ - I..- - -- _,g_-
. ‘ i
-- -----_-_\.-y-- -S--- -- _..-i.._.._. -- __.____.__ --
i i 2
marks; ,,_.. __ . __..-. ,,..
w unumwm Prior 8mm
GENERAL INFORMATION
'0 Accounts at Company Regularty Audited by Independent Auditor?__.___ Name at Auditor Mm! WC “NC"?
3" OI Lost Audit; When Does Your Fiscal Year End?
N Often Is Inventory Taken? _ __.. __ __._.___-When Last Taken?
1" TIM OI Year Is Your Inventory the Heaviest? -- —L°"“"
W Are Your Usual Sale Terms? - ___-Purchase Terms? _
N All Ind and Doubtful Assets Excluded from This Statement? —
"“7 0' 7°C? Assets fledged to Secure Liabilities? Expioin_-._———---~-
" MY Suits Pending Again“ 79.? To Your Knowledge Are Any Suits Contemplated Against You?

 

 

The W. for the purpose at procuring and maintaining credit with your bank on negotiable paper or otherwise, hereby furnish and warrant the toliasring facts to you,

' 60""! and truIy represent the financial condition at the undersigned on . ‘07 9f . , . . . ‘9 fi (should the “7 .0 W “0*.

_ N OI the statement um b. you... f." the day), 'hich facts and representations you can consider as cantInuIng and remaining tull, true and accurate unless notice of Change
Men' you, and "u...” 5‘ hereby mode. to ”my you promptly at any change in “normal condition that materialty reduces the reunion mibility at the undersigned.

I consideration at the ranti at credit the “mi ned a reg that in the event at lailure, insolvency or committing an act at bankruptcy; it any at the ntat
more untrue; It the undersignednyail to notify you in wanting gt any change as before agreed; then, or In either case, oil obligation at the undersigned hold you 3;:
'I'iniighusfzmwfi and payable without demand or notice and the sags; my tithe mad Oral”; "It POW"? OI'OM 3‘0"?" :9 "'0 'C'EI‘M 0': the “40650“ VIN ”I. A

. . . - nne;asOCOsesInOCIon,ronImeouneenIs , '

WWW held by "my given on any balance on deposit to the credit I to I'll secure eII obligato- at the
”wig" NM! "press: agreed and understood that in the event we make application tor further credit or for the renewal or extension at any existing Indebtednem, this

 

 

 

 

 

“IN-term" he as val and binding as it delivered as a true and correct statement at our financial condition on the date such further credit. extension or renewal i request“
DAT! SIGNED
sumo, _fial.'.a__fla££aa.5hap , .
Corporation, firm or Trade Name
k
19
”miss
Musk“
—— .1 “TL:

 

 

 

 

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FINANCIAL STATEMENT 1°85 BUSINESS ..___OOIronATion
"""'""""'—" ___..rAnrnsssiiIr

(Co-“4min“ AMERICAN sANK AND TRUST COMPANY _LWVWI
Lansing, Mich.

WW -W

C] Registered Addreu

Mam” Shop .0 I... new“.--
Address
sTArinsNT As or I! comm or..lnghl.nL_

(Planes am all auatlans. When: no figures are Inserted, unto vord‘ ’none" “or "0"!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS If LIABILITIES II
I? II I
C‘ on Ilend end to looks {I a fin w Notes and Acceptances Payable tor Mdse. (Not Due) ' I!
nun ences or to " 5 " ‘I I
Centred“ ,toue VIn?:m% I” __ Imflqflfi-I Notes and Acceptances Payable tor Mae. (Past Due)
Notes and Ace tenses of Customers ; I ,
Cumin o... Beyond so om I, ,_,__ ,-__, H Notes Due to Banks, Secured s..._..__ Unsecured g l
Accounts Receivable ot Customers I I " I
Considered Good Not Past Doe I- __ ; ,_ _, ,_ Notes Due to Others or Otticen I
Accounts Receivable at Cato-en I I I
Considered Good. Past Due ; ___, _ , ,_.I Accounts Payable lNot Past Duel I "I
‘ ' I
Mtse-Ilan Materiel (lieu Valued I I,___,_‘ __., I, Accounts Payable (Past Duel C. ; .....
,‘ 0 Accounts Payable to ‘
nee—i. Proce- (lieu Velma—3318.) __.,-5.QCL ,0 ‘ tori rim. 0mm. or below: , I
.= a? I II
I MPH.“ m" Valged I I I [___]; Federal Income Tax Due $.___.__ Post One $._____._. I
I i . I A I terest, T Due, Dividends Declared '-
[ ILLGovernioent Securities _.__ 1__..-I__--.l “'1'“ " Other u“ ---...§
. I i I Mortv'ges and Other Indebtedness One I
3 Other Current Assets Ilteniixe) .4 _....I I --.-. ,I thu- lt Months «I I no. __-- I__.___..
I i. I, . I
- I ~— ---i--~~I—~—‘ ----~-~ : ,_ ———-
' “___: ___ L, ---- _ -.. .: Other Current Liabilities (Itemisel I’“""" I_._ _ __-!

 

 

 

 

.-...._.——_ -...- __.- _. -

 

TOTAL CURRENT ASSETS
NotesondAccountsotPartners,Otticers.andOthers #:i _ _....I
I __ I

_ -__"
I:
l
l
I

I
. I 1, N - - . -‘ - -..- 77 T A A
.' I I ;
.. am __.- ~ .. .r-—m- “__..-- ......_--I__--.- -.__.--_....._--.II-__. ,:
’5 . I I' '

.._._-- .- __- __.- __--.. ,,_,_._,__ II I
I

TOTAL cunnENT LiAsiLITIES |

 

 

Notes and Accounts at Allied or Subsidiary Concerns j ‘
Immum Stochs and bank (Complete List Must Accomwflt II - I“ ____ h . Mortgages on Real Estate (Other Than Above) _ I

6 II Chottel Mortgages and Leases on Machinery and “I I
II I ' .; Equipment IOther Than Above) II . I

___..< -.. .-.

 

 

 

 

 

 

 

I . 0 V .0 I __ .I an." Liabilities, Not Current (Describel I: _

 

 

 

 

 

 

 

 

 

I. Laid. Nit soot Value (Assessed tar s_._-r_____-_I I‘_-- WI“..- -.-_ l; __- ..e -. . -_.. - __-. __---- -- I. ._ “___,fi I
HUI-n. Net Iooh Value (Assessed tor s....-...._--I ;._.._ .--- W ‘ _-_ - I» -- -— --,I_..____ .-__.-_. —--- _. ""’"”""“""II
Machinery ”4 1...“, a“ M m... I‘llIASO -00 TOTAL LiAsILITiEs II
“with and Equipment, Net look Value :=I_._---:__._ I —- ,I. -

 

I'M“. “mm. and Goodwill ,_ ,,,,, __. l, , ‘-
NET WORTH ilt Individual or Partnership)

m up... , -e~————~» *—~ - - -- . This Section To Be Used On It a Corporation,
.-_ To Show Distribution Net'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
   

 

 

 

 

    

 

OthotAseets Iltensizol I- —— — -- r- - II
I I, I Capital Stock, C “ Ahares $___...-A--.- __Par
I T“ ’ “”""“ H‘ _"'II“”_ L ' cum» Stock. rmano..-_---..--saom Sm--.“ -r.: ;
W _ fl T _- - _- -_ "-—Ii‘ ~ in — I I Surplus
1 ___ ._.____-- __ L _ ---- ,.__ ___“--- ~---- “1' , r" " I'” :I Updivldcd Profits
It: mt“ Assm --.., "__..ij Q01: ,_ _A TOTAL ILiAsILITIES AND NET VOITHI:
__ SUMMARY STATEMENT or PROFIT AND Loss FOR YEAR ENDED
3qu m.”___ I 5,.“ prom on Sales- I _ -ww- Wig: N“ N“ 0' “EL—u-— ——/——-—:
w: c“. .9 W 3.“ __fl _: ' Deduct: hpemuwu--- M» ~- , n ‘ Add: OM 'mM-m:
Gnu Profit on s... 1 Net Pretit on Soles-._..—-—— ------ I N“ Im— M

  
 

 

AMOUNT or ANNUAL SALES ON «son 3.. -----

A r J
n
i

MOUNT or ANNUAL SALES roe CASH
CONTINGENT LIAsILiTIES:- m... m...” and mom Discounted sou fledged. or

Silvester tor Others on Notes. Iona. Accounts or $.15“ ”~—

WWWW Mu“ LIME
TOTAL CONTINGENT LlAIlLlTIlS—-——.—-~————-—-

INSURANCE? Fire Insurance on Merchandise $_-_-_..--.5QQ_A.Q.O_- ———-.._0n Winery 00‘ w

on buildings _L General Llablllty Insurance S __,.,__ __________

 

 

 

 

 

 

 

 

' ' % at I Lite Insurance Carried
ell Names at Aii Ottlcers Directors Partner: at minim» Ii tort-0m 9°“ " W" 59"” °' """'" '- Down the benefit at the 3.5.:

_ .. .__-..._.-_ .. -._~-.,_- - -...-
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86

DETAILS OF LAND AND BUILDINGS

TITLE IN CURRENT ASSESSED ENCUMBERED
NAME OF VALUE VALUE " AMOU—NT' " " "

_, .- .. - . , ,\ - - __.—_I- r

,5“

DESCRIPTION AND LOCATION

   

"" ' ""TTI i‘inOIii'

 
    
 

   

 

 

* ' Eff” , _ M L
1—/.—",_4.¢i”’.'....I __.- _ec ..- m
SOURCE or INCOME PERSONAL INFORMATION DELINQUENT TAXES
WOW . . . . 5., 7.449.99 Business or Occupation Works tor Age Sales Tax yr S .—
30"! and/or Comm. 8.--- ”0--.“- .. .- “Re figuréni _ ___ self . _ ,._ , ,_ ,__ ,1? _ Income Tax yr._...-- $___.----~..-
”I'm“ - - - $.——- 4 . - - - Porlnor or officer in any other venture Property Tax yr.--. _- _ 5--..-- __..

Real Estate Income LIQSDJDQ -9-‘?._.-, .. - - I.
Other Income . . 3.1.066e7L :lxa‘rr:gz__fiany, _ 0 Children 1 - _ .I .- .
TOIOI Income . . 3-,9512‘11 Single , , ,_ , _ -.- Dependents . 3 . I _ _. .. - .....

SCHEDULE OF LIFE INSURANCE CARRIED

Cash Surrender
AInOunt Name of Company Beneficiary Value Loans

1000.00 _ -. Metropolitan _, _ ,Wlfe . 2069.00,“.
4500.00 w _ _ Aetna-_. . _. " 259,_QO__-,___

4000.00 , _ New York Lil—trio .. " 0 318.900.,
5000.00 . Nah." Beryloflamm " 000.00

200.00 ' W Ahepa {citing Thom oQNEQOOQoo”

_ ,, ___ Other Tax yr. -.-___ S--.___.______,

 

 

 

 

IAC‘. VALUE 'BONDSI INCOME -a-r-c- ""
NUMBER OF SHARES DESCRIPTION OF SECURITIES OWNED MARKET RECEIVED WEE”.
(STOCKSI ”we LAST YEAR . -..—w,
' __i- - . , _ _ ,, fun-r, . - -. ..- _.___,_ -—-.——— --
3. MM"?
7 -r.- - __., w Wm" . . _ __ _, _ .... I. _ - . _. ..--__,__,-
My,”
_ ...-M— ..-—'-""' — - - — - —— -- _ __. - ,
‘M'-
itmarks- ____

“ N~__i-

 

‘ ‘ ..-- .- ..---- .._-..— .. I . , -. V ,,,_

P'rsent Banhis.I Mariam Stale

__ -. _ i. . ..Prvor Banhrsi. ___---

 

 

GENERAL INFORMATION

 

 

 

A" AcCNN"! ol Company Regularly Audited by Independent Auditor? yes. - Name at Auditor Amers_BUBanB a. ....--c_.__.May We Contact?JBB__ -.-,
0°" °l L089 Audit:,_,__.Ian._ A}, _ 1956' ___,__-_,,, , _ ,_ When Does Your Fiscal Year End}. 13831811112817 --.-___..-____.._._——. __--.— _
H" 0"". I‘ IMCMOW Token?__,_ “HOME , a, J m , ,_ __ __ _ _ ,0 _ _ _ i When Last Tahon?_ -DQQ meer _- .-. ...wm. ,_
“0' Time at Year Is Your Inventory the Heavies”, _-,Hintier _, _ . i , _ , L _ _i_ . _ ._ LovestLL.-- §@QGLW_M__~H_

What All Your Usual Sale Terms? H . fish... 7 -- -----L.-.“ ‘ __ ______ I __ Purchase Terms’ .. camfimIEBdlL- __-—“__.-
A" A" 'M “"4 DOUblflll Assets Excluded tram This Statement? _ NO _ __....” -.....n..-o...._..__m. “__..-- --.c .-,--I-._-__._..._....._..e 0....
A" A”, of Your A5"! Pledged to Secure Liabilities? H No ._ _ -WExplain '9'. - - _. __. - ,7 _ .._._V.._c..___ __.... -_I _ __----w..___._5_ __
m ”'7 Sill“ Pending Against You? __.... m “1” .- “......“ 1w __ _ , _, , . To Your Knowledge Are Any Suits Contemploled Against You? __NL—«fl— -.--

 

 

The undersigned, tor the purpose at procuring and maintaining credit with your book an negotiable paper or otherwise, hereby turnish and warrant the Iolloving facts to you,
'lich .
IN “it":fmimly "present the tinancigl condition at the undersigned on, - - - -d°Y 0‘ — -—-—--——--~——Ir—~——--~--v-. .-- - ‘9*-"~' “MW” n" do, I" k" blank,
I, 9"" yo "Olefnent will be taken for the dayl, which tacts and representotzons you can consrder as cantInuIng and remaining tuII, true and accurate unless notice at change
“' °'d 09reement is hereby made, to notify you promptly at any change in linanciol Cf‘l'ldITlO“ that materially reduces the pecuniary reSponsibility at the undersigned.

M" (lizczxideration at the granting at Credit the undersigned agree that in the "out or lemon, Insolvency or committing an act at bankruptcy; it any at the representations
“mtdiately bcriie, It the undersigned oil to natity you in writing at any change as Di‘ore agreed. I'llr‘n, or In either case, all Obligations alAthe understgned held by you shall
Continuing “"69"" due and payable without demand or notice and the some may be charaed :Iqaznsl the balance OI 031 “<00" '9 "'0 Full" 0' "'0 ““dCWO'Wd VI". you, A
mm,“ held'Eyhgzby given on any baiance on deposit to the credit at the undomgnod; also chases in action, from time to time existing, to secure all Obligation at the

ll I! hereby
n expressl
“"222;de b. as "My

flawed and understood that in the event no make application tor .‘urtnrr creditor tor the renewal or extension at any existing indebtedness, this
and binding as it delivered as a true and correct statement at our tmonual condition on the date such further credit, extension or renewal is requested

DATE SIGNED

\‘Celmnuxlz _____ _____._-1956_- _

'ITNEss ___

 

SIGNED I. _I 58.1! S Coffemfihap

Corporation, Firin or Trade Name

———‘_ __.
-- .——.. ...-
-——-‘__.__——-.-_- -—

ADDREss ‘
~~—---_, _____________ 3y_____________' _ > _ 7 , , ,0 , ,,__________ .--- -- ...- _ -...TITLL_.__- _- ._

. —.——. —- ...-___-

‘T In.

 

87

W

 

Fan NO. I-O—INUVIOUAL

TO
EAST LANSING STATE BANK

EAST LANSING, MICHIGAN

Nam—Georgian LWLWI __ _ _W _, ._ _ W W-__-__W19W_
BusimsWSLmflnLWi .r.-__ __ _.-i-_.._-_-_WW- -_ _..
Location Michigan State University __ ,W__,___-__-__-

The underSIgned, for the purpose of procuring and maintaining credit With your bank on negotiable paper or otherWIse, hereby Iurntsh and
day OI

__._,_ ___, . _W________19 ,(should the do be left blanlr, the date oI ’he statement quI be taken for the day), which facts and representations
y0u can canSIder as cannnuing and remaining ull, true and accurate unless notice of change 25 given you, and agreement is hereby mode, to notIIy
y0u prompIIy of any change in IInanCIal condtt Ian that materiait .y reduces ‘-hc pecuniary responsib lity of the undersigned

In cansideratian oI the granting of credit the undersigned a ree that In the event oI Iailure, insolvency or commIIt Iing an act 0! bankruptcy;
if any of the representations below are untrue. II the undersigned Oil to naIIIy you in writing of any chan e as before agreed. then, or In either
case, all obligations oI the undersigned held by yOu shall Immediately become due and payable Without emand or notice and the same may be
charged against the balance oI any account to the credit of the undersIgned V» th vou A continuing lien is hereby gIven on any balance on deposit
to the credit oI the underSIgned also chases In action, from time to time e- Isting, to secure all oaiigations oI the undersigned held by you.

It is hereby expressly agreed and understood that In the event I make application for further credtt or for the renewal or extension oI any
existing Indebtedness, this statement shall be as valid and binding as .I del. vered as a true and correct statement of my finanCIal condition on the
date such Iurther credit, extension or renewal is requested and gran ed.

FILL ALL BLANKS. WHERE NO ANSWER IS GIVEN, “NO" OR "NONE" WILL BE TAKEN FOR YOUR ANSWER.

 

 

 

 

- ___ - ‘W,4.__

 

'warrant the Iollowing Iacts to you, which Iully and truly represent the finanCIal condition of the undersigned on

__.—_.- _— -. .— _. -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS LIABILITIES
Cash on hand and in bankWW _.- ,W_W_.__W Y _.._-,__§32; I31 Notes awed by me'-- without acuity,,-.-_____-__,_ .. I,” ___. _ ____,__4
Accounts due me~-Good W.-~__.__-__-_- ___WW __ -.s ___--- WWI“--- . Nfilfli’fiiflfl $3.7m ”tote. ,, -s WW.__.__I-‘,.-W R __l W7
Unsecured loans due mo—-'Good W. .W. _W I- WI NfIlfffiIflfggf’Efinofléé 9:1“: __________J_____s_s
Secured loans due me - .W-WW WW... .. .s _ -W 5000 IOQ- N:iIheS(h)a::I’dME:1/£;—o: mmeWWW..W “WW-“ IWWWWW ___i___+.,_, W
Mortgaged loans due me W “___i,_ __ ‘ Accounts owed by me , .__.- -.. - _.__ ,ka‘
Stocks and Bands _-_____ "___ __, -..-“ >~—«I- _ 5300 IOQ Any other indebtedness-itemizer__W.___ r— -~»-—-«
United States SecuritiesWWWWWWWW ___..IW-.. _ _Wfilrs . - .-. , .-.-.- - . . -.- _ . _. WE ___+__ _1
Land W __ __ ., __ ___w i___,_ls ”W 7. ___,ii __ _ W _ __ _ W ___m
Butldmgs ___W W _i l , I -s W_,__W.-_si W _. _ ,.___ _. _ -, _. ,_ -- _-WW_____W_ _

 

 

 

 

 

Any other property or investments -- itemize. l _____ _.-I

HAWIAWYWAWJMI-.______..vs__-_...WlQHWOO . . -- . .- __ __
75"“ annual ma __.---__-VW13III5&. I-.- W -,.--V~-,i-----_..._. W I

 

 

-~-—-—o— .. -..—___ - ......_._ ..., _ . -..._..-._ ..A . _ ‘L—- -- —— --- -—-— .- -— - m1}

 

' _. -WW—“WL - I-----— -- __--___.——- h _.-._— ——WW.___W._. __ ..- _--

 

 

W..W______ W WWW, .i _ __ ___-W_--___IQIAL LIABILITIESW-_

.WWW ,____ _ . NET WORTH __ ..._ - _ ___- -, -I 15371 '15

 

 

 

TOTAL 1531;“1: TOTAL

 

 

 

 

 

 

 

CONTINGENT LIABILITY OF ANY KIND

 

On NOIGS OI others endorsed by me _ __ _ ___. . _ -r-, W--. _ .- W ,_ .- WWW—.-.... __.. _. .... a.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A5 Guarantor Ior accounts and notes of others _- , A --- ---—.-.--.— —. - ..I , - - “_....-— _ ,,,______ “__- ,4

On Notes exchanged WIIII others“ “___ _-_ -_W_. . __ H 113 E . __W W _W I __

A5 BOHdSmon or Surety Iar others ..-_--- “_.-—___. . awe--—

For LoosesW _, - _ _ m, _ __ _ _ .,_. - . A. .- _ .. _ I ...-.. s-s.-W.W_-._W __.. ----WW.--____.J,_W-_- W___-_,_-1I_W

Other than above Specified ,_ ___ _ ___ _ __V,__ I- - -_ - a- _ - - _..__- _

TOTAL
LAND AND BUILDINGS:- DETAILS RELATIVE TO ASSETS AND LIABILITIES
DESCRIPTION AND LOCATION TITLE IN wHosI: NAME Aisfi—‘USED APC:CI152ED ”O'T°“G" 'N'URANC‘ fizIArLissc'AELcIr‘g:

I—\——-—W__W. _ r____~__, .--__..s __ - ___..-__-_ _. .. 1 s- - .- _..—......I Luann-..‘ LWWW—t. $W _- ___ -.. s .___ _
M~”_‘—-~-~———-—--— -.-—WWW, _ ”___ _ __.. _ ___. _ L . .. -- eg— - .——~ ~--— .— —» ——-- ~ ._ — >-~—————II——-—-——-~~—-- —~——~ 4L» “”“1
I W __W __._ _W A __s I _. n o N E .. WW .. WWW-_I___.W_WW.I
b-—~———-WW W - __.,__ _ _ _. _.--.. I‘" .....-m. .- ~~—« —» ~ ._ -—~ o—fir—w—wm- I“ ——-—-—— - --
l_..'-—‘—~—-~_._

 

 

 

 

 

 

 

BY Whom appraised? _ When?

s -.__ IVs—--. _ . -.w, , ....— - «__--- -—c. ___.
_..—___-.. __ - . H I _ » .r.. .

 

Taxes paid to what date'.’__..

 

_.._'.__._'.-—_-.n._, ._._____,__ ___. .4

 

LA

nil

 

I, there any orher person interested in yaur bumness either as special or limifed panner'LNEo

 

 

 

 

 

 

 

 

 

 

 

 

 

Are you a porrner in any firm7--__- NO _ _ _, u _ - ---- “___ -_

Are there any iudomonrs unsatisfiod, ar suits pending against you, and for who! amount? _-MNQ __ o. M.
Is your lilo insured? Ilfl___-_._--_ -. a - _,.._-___ ..- _ a Amount? .___, 12.000; 90

Who is the bondiciory?-. ...... _-..1113 ___-” -_ ._ _. --_~- _.---- . ____._ _, __ -

 

Give details

Have y0u any loasoholds nor mentioned in your 055937-"-..

 

-_—.— ——. ‘fl-m* v.4— —— -

 

 

What in your opinion is the net worth of each endorser on your notes? ___- _,-..._-_-_.___.-_,.-. _

._. _.— -._...__-

 

 

 

 

 

 

V. __ .. -- .— — _-__..-- — -—- .—
__ __-.——-__—._ “___—___. ___—__- —.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES OWED BY ME;—
‘ro Imam GIVEN AMOUNT on: me our “:1sz azscmrrcou or ucUnmu '1.me

P —_—--- _ . s.__-_- ‘ ___..4.._....-_-.__._+- _..-— —-—--- er —— 4
*T.“ J} -N- -—O— fi—{L-—o-—~--—- ~4b- —- --————-——«>-- -—~ «___ .4
"—— --—-—-~—~ _..-___,w-..“- -- --...- __..4L __ ___.___4,_ - .-- _-.—_.. 4» —— ——-—--+———--——- «~-— —— —-————— --. -—----~———— ———-—-- 1

ACCOUNTS OWED BY ME:——

TO WHOM amour“ vmm DUI ron wHA'r

" ‘ —— ———— _.‘______..____ _______ 4 i- -- » -- ..~——-—-—4 — ~ —-- 1L—- —-—-——--— —— ——‘ — —-———— — —— ----- - —

~———- ~----_-i___...__ ___“ _ L- H 0 N E —+—- -—— ~——— — “_--- — _
OTHER PROPERTY
Dcscmrnon LOCATION VALUI

‘__ _ __m *_ ....-h ___“ Q fl _ __ M * _ w _ “”1“” -_ ___m. w“ .. “___ _y 5‘ __ __ “___4

-.‘_ __ 11 an -).; ______5._._.-5_ -‘-.__.-__--_.J_-___________H
Pkw‘ ‘___-______m _ __

 

 

 

—_..._._ ~_ ”__.—j, _

 

 

 

 

 

‘M

_...--
__.—_.....“ _..—--.

I hereby solemn'y declare and comfy this to be a true and correct staromen' of my Tinancral condition of rho close of business

 

-. 19_w_._...

 

(Sign Here). _-, -. , __- “a. -.-

- 1156

 

 

 

 

 

 

 

twee-«arm» '. h

- T0
EAST LANSING STATE BANK

EAST LANSING, MICHIGAN

mwm June A! 1911.
MmmlLflntteLfihnp

 

l

 

 

The undersigned, for the purpose of procuring and maintaining credit with your bank on negotiable paper or otherwise, hereby furnish and
warrant the following facts to you, which fully and truly represent the finanCial condition of the undersigned on 14th day of
___—1%-1956, (should the day be left blank, the date of the statement Will be taken for the day), which facts and representations

you can consider as continuing and remaining full, true and accurate unless notice of change is given you, and agreement is hereby mode, to notify
you promptly of any change in financial condition that materially reduces the pecuniary responsibility of the undersigned.

In consideration of the granting of credit the undersigned a ree that in the event of failure, insolvency or committing an act of bankruptcy,-
if any of the representations below are untrue, if the undersigned oil to notify you in writing of any Chan e as before agreed, then, or in either
case, all obligations of the undersigned held by you shall immediately become due and payable WIIhOU' demand or notice and the same may be
charged ainst the balance of any account to the credit of the undersigned With you. A continuing lien is hereby given on any balance on deposit
to the cr it of the undersigned, also chases in action, from time to time existing, to secur g'l obligations of the undersigned held by you.

It is hereby expressly agreed and understood that in the event l moire application or further credit or for the renewal or extension of any
existing indebtedness, this statement shall be as valid and binding as if delivered as a true and correct statement at my finanCial condition on the
date such further credit, extension or renewal is requested and granted.

FILL ALL IANKS. WHERE NO ANSWER IS GIVEN, ”NO” OR ”NONE" WILL BE TAKEN FOR YOUR ANSWER.

Location- 1002,.80nth, line sateenmumchigm i

 

 

 

 

 

 

 

 

 

 

 

ASSETS LIABILITIES
Cash on hand and in bank ..-.fismflflo 4 Notes awed by mrwum ”sanity... _..c
Notes owed by me—

ACCOUhIS dUQ MOM . ___...l N-flh acuity 0th. than real eefldatg

t t ——
Unsecured loans due air-Good .is Nfifi’i'fiiéogfifiio ..Y m. 2 Q0

t y --
Secured loans due me*_-__-, ..-..- ffilfami Mertgrzessecerity- 2600 QQ i
Mortgaged loom dug in. Accounts owed by me

 

 

Stocks and Bonds _,r-_____ ,___, Any other indebtedness—itemize

 

 

 

United States Securities

 

Land .Canxreome-..., 8880 Q, I

 

 

 

Buildings L can

 

ANY other property or investments—itemize

 

DO
WWM_- 114150 90—»..— .i ---.i
floneelmmum MCQMTQQ ”_.."--- MC“.
lQSLJenmstmd- -- ___i____-1857Q _J

 

 

 

 

 

 

W slot: 500 00

 

__ .__-__--._._...c____TOTAL LiABlLITlES___.l QEQQQL
_ t-—-—
l.__ ___,_~_._-,-___,___,______ - _ NET WORTH ___. ___- “350 l 00

 

 

 

 

 

 

 

 

CONTINGENT LIABILITY OF ANY KIND

TOTAL 35mg 00 TOTAL 54l§0 00 ,

 

On Notes OI others endorsed by me ._-_- .-- -.-. __."..w... — - m

 

As Guarantor for accounts and notes of others _

 

On Notes exchanged with others- fl_Q,_Ll

 

 

As Bondsman or Surety for others

For Leases

 

 

O'l'tfif than above specified-_____, _ _.-_-.-._--- _- -. _.- ..----m‘ . - -._-,,_- - ~___——-— - -_-

 

 

 

 

DETAILS RELATIVE TO ASSETS AND LIABILITIES

 

LA ND AND BUILDINGS:-
AISESSID Avenues)

uterus Item
aucmniou AND LOCATION TITLE IN WHOSE NAM! ‘MLU‘ VALue narration meunnuct

 

533,ng a. s s L._.____1.S ,
Jmmgw_nmm_w _____,Tg;_z;_t_______ 76:00 HOOO-i- 200 20000 ~--—-

l -- ......i

 

 

L—

.. .. _ _--.-- - ----“ ... .-- .71

 

 

 

 

 

 

 

 

T‘ --_~-_-__._.--i._

 

 

 

 

 

 

 

 

 

 

a, when osmium _-MMmW when? 1953 I

 

Tm. paid .0 who, do“? Joe ember 1955 "

 

 

term:

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I; there any other person interested in your business either as special or limited partner? HQ

 

 

 

P-_._ _-.—.r.- .-—___. .._.. _‘F _—’_ - _ .- _ ~c.___

 

Are you a partner in any lirtn’?_._,...._RO_._.__ ---.-.__._*-._.__ -_ --..W- - _. . is“

 

 

 

.———_.-———.——_ — _.- -. _--s_‘__..- — .— ~~r __ i. ---- - a- A._ -.." ...... -

 

Are there any iudginents unsatisfied, or suits pending against you, and for what amount?_-__H_O-_._.___.___

 

 

_ - _.__ .._._.___._.___,_- ...—_..

 

 

 

 

 

Is your life insured?____.__.._xa§____._______._..___,--.____----e . _- Am0unt? _ ___,_1_57_QQ“

Who is the beneficiary? lite __.. ,_ ....
Have you any leaseholds not mentioned in your assets?____.__,Ho._~-_____..-

Give details ""'""'"

 

 

What in mm opinion is the net worth of each endorser on your notes? __-

 

 

Are any of mm assets, other than real estate, pledged or hypothecated in any way7- N0

 

 

 

...-— - __-—.-—.. _.....- -___——_——_._-.——-- _

 

 

NOTES OWED BY ME;—

 

TO union owns AMOUNT oer: WHKN our “2'11?" Descnii-Tion or e PLIDGID

 

/

 

 

 

._ l

 

 

 

 

 

 

 

 

 

 

 

ACCOUNTS OWED BY ME:—

 

TO WHOM AMOUNT WHIN DUI

 

 

 

‘——“i

 

 

 

 

 

 

 

OTHER PROPERTY

 

DESCRIPTION LOCATION

VAL“

 

 

 

 

 

 

 

 

 

 

 

I hereby solemnly declare and certify this to be a true and correct statement of my financial condition at the close of business

‘\N-‘m14 - 19 56

 

(Sign Here)-

MW 19.5:

 

 

 

St:

in

“WEI

”Ilh .AII

91
TO
EAST LANSING STATE BANK

EAST LANSING. MICHIGAN

‘Neme ...... ottoman-QtJfidxtotdla ................... , _
sum-.---SIIu-a Gonna-shop _-
mam-1002- South--P-1nn--fltr-¢§&.--L%n§1_!18 ................ DatedStatemenL-IIWI 12 ..... .1956"

‘lie adenine-II. for the purl-nee of pmafln. and maintaining credit with your bank on negotiable paper at otbendee. hereby “nave-rant the

leflesda‘ fecte to you. which fully and truly repreeeut the financial condition of the under-tuned on . -, ...................... day of ......................... I9-_
than” the day be left blank. the date of the statement will be taken for thr day). which In t- end repreeentetione you can oeaeidrr ae continuin- aa‘ Mala;

ll. true and accurate unlm native of change in uiven you and agreement in hereby made. to notify you promptly 0‘ any chance in financial coalition th‘
.aterlally reducee the pet" uniary reeponeibillty of the II ruler-finned.

In coneideration of the grentin of eredit the undereigm-d agree thet In the event of failure ineolvency or committing an act of bankru rulrte'y
lepreeeutatlonu below are untrues I, the underetgned fail to notify you In writing of uny rhanxe ae before agreed; than. ori- eitber tale. a obl
andereigned held by you shall Immediately become due and payable without demand or notice and the eame may he rhargad againat the balance any m
b the credit of the under-tinned with you. A continuing Iirn III hereby given on any balance on depaeit tn the credit of the t aleo all. I- a“...
from time to time exieting. to eecure all obligation: of the undo-reigned held by you

It Ie hereby expre-ely agreed and understood that In the event I make application (or further ererllt or {or the reaevral a extra-ha a! aay axietin.
bdebtedneea. thie etatement ehall be ae valid and binding an I! delivered ee a true and eorrert statement of my financial auditio- . the date ea‘ farther
«edit. etteaelou or renewal Ia requeeted and (rented.

Fill all Blanka. Writing “'NU‘ or

comma atom (BUSINESS)

--- - n--ea---—---—--e---—--¢—---o -—----------------o-------

.. ...-- .-----—-----d---------------.---.------------.

Illaayeltbe
den-eltbe

“NONE" Vhere Neceaeary to Complete lalennetlea

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS DOLLAR, ”3L LIABILITIES AND NET Irom m” c"
Call on Hand and in Banks ................ _ B 5 Q4 Notes Payable-Banks ............ - ........ Z
Note- Receivable (not due) ................. _:-_,u_ p Notes Payable—Merchandise ............... ___, {- i
Nome Recdveble (peat due) ................ WWW}. ..I i ‘. ' iW Notes Payable—Other: ............ , ........
Accounts Receivable (not due) .............. - l I irW Accounts Payable (not. due) .................
Accounts Receivable (past due) lean than 3 mos. Wt i. J ' - i,- i W Accounts Payable (past due) ...............
Accounttflooeivnblerue) more than 3 mos. -- -_ ; ‘ - 1. I, - -. Reserve for Fedd’al Tue! .................. I
Accounts Receivablemst due)more than 6 mos. _ - I .I_i lWW Reacrvr for Other Tue- ....................
Merchandu. .............................. __.-- _. .. iQQQ Other Current 1;.me ...................
marketable Socuriu'ee (ethbIt A) ............ ...-i-i if _;--i_i__. .......................................... ..-
------------------------------------------ L-—-tt-»‘L—l-l $71., —---------—------------------.------------ J
Tom CURRENT Assn. ““‘E‘O-Q- “6'6 “m mafia??? ...............
' l l
Rm! E!!!“ U!!! in Busing“ ................ .. I . 1- 3..
Buildings (I... depredafion)‘ ,,,,,,,,,,,,,,,, .. Li- ll, 4 Mai. or Lend Contract—Homestead ........ I
IMOChInG'y and Fixtures (1e. dominion”-- _..:ll--.Iill 50 9.0 Mtg. on Real Estate in Own Name ..........
Home ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, - -i-;-,- I, i-_ Muton OtherRee) mic.-.----..- .........
“6-1 Fauna (own name) ................... W ' t5 ft a-.. Mm. on Real Baum Sold on Contract-...---
Red Estate Sold on Land Contract (u 8). -_ _.- Q. - I. v. _... Land Connect. Ply-bio .....................
Other Real Estate (exhibit c) _______________ -. i i l. .l -- - .......................................... 1‘
R0" Estate Bought oa Contract ............. _- » , Ml» -&~-lt— -- ..........................................
.......................................... mil-r I’l”"'7"”“ ——
.......................................... -..-ii .;-.'- I-i-l -— ------ - ---------- ffi
[Mumm- (”him D) ,,,,,,,,,,,,,,,,,,,, __- Ll . t l - .......................................... ,
OtherAeeu ______________________________ __ , 3- E _-I- ir-cW .........................................
Durand Chg... __________________________ __ I I fiL LL47“. TOTAL LIABILITIES
i i Dela-red Profit ........................... -: _. i
A I Not worth ................................ t .....th9 9E
TOTAL mm 27.0 45W OOH GRAND TOTAL III-I
i i i I .
'Wbet fate of deprecwmn do you charge against building! ........ 9.9-9?— -------- . machinery and WN-lox- -4‘-mgg1-l’- ----------- ’
k INSURANCE CARRIED
Plant. and Equipment Insurance; -- _ , _ ._ __- __- ----3-12.00. --9' Life lnmnoe WY‘NC ‘0 (N‘m) ------ ‘1 tab oooooo 3-141002?
McChaudiee Innurm_-,_--__“,_,_ _ --__,-.8--_-50.0:-:- Credit Inst-trance ................................... 9.929.929
Ute and Omupanq, ____________________________ 8--- -393!!!- Do you carry liability insurance? .................... 8-50-0003.-
()1 'hll date doc your 5313.] your cloae? .............. Dacamber. - 31 .............................................................
Are It! had Ind doubtful ..eu exrluded from no statement?" 5.0 ..............................................................

Gm hail of statement, whether actual inventory. by whom taken. and date. or if estimated

................ “PM“ Engine”- -Senrica-.----Jmu&PJ.s-195
mMWiflmy any withotbaenterprieul--. ”HO -------------------------------------------------------------------------
If U. M live WI.” ................. cane-til. ----------------- 7 -----------------------------------------------------------------

...
.-.-.---.---‘--..-------‘---------------_--------------------O--------_---OCO-OC---'---.------------. ..........................

Have Yoda-d Income Tax payments been verified and audited by the Government? ..... I...“

bévhom made and date ........................

.--O----.--e—------- .....

 

mmuau—raaa 110 9 2
1 ,, #

 

 

   
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT AND LOSS STATEMENT RECONCILIATION 0? NET WORTH
Pal-ind mill/55. ...... Period Ending-1213M51 Net Worth as of Data ................. t ............
Nat Saks lat Period .................. 68127-69 Adjustments‘ ........................ t ............
I.- out a Goods Sold‘ ............ 330501-75 Adjusted Na Worth ................ - ............ I ............
GNIM ................................... 828.225 Net Profits ..................................... 3 ............
Deduct: Total ........................................ 9 ------------
Administrative Exp” Salads. flaunt. ........... Personal Withdrawals ............................ 8 ............
fixadchargaluzludingm ........ 8 ............ Net WorthasolthisStatcment ..................... 8 ............
WWII IO? N accounts ---------- ‘ ------------ ‘II adjustments involve important transactions. pleaaa give 69'.th
Deduction for plant and equipment below:
depreciation ..................... 3 ..........................................................................
Otbadeductions ................... LL: :.i-;- _.., ..............................................................
Total deductbos ................. 820115.. 85 ..............................................................
Net pmfitslromoparations ..................... SHE“ ..............................................................
Other Income ................................. $--2322. ..............................................................
Net Pmfit or La- ............................. c-3572. ..............................................................
‘IldaptedationhlncludedinoostolGoods --------------------------------------------------------------
Sold. please state amount so Included ............ 8 ..........................................................................
EXHIBIT A and D—STOCKS AND BONDS
Dasc m PT I ON "1:51:13" cosT VALua uaaxrr VAL-u: AMOUNT man
[had ................................................................................................................ _..",
..................................................... 4-0-x Emu"---
Una-III-.--.-------I:I:IIIZIIITIIIIII: XIII: 1:1: I: 32:12:: I: 11:22:: 2::
EXHIBIT B—REAL ESTATE SOLD ON LAND CONTRACT
¥Dncmmou AND LOCATION TITLE III NAME or J eOLO FOR #2233 ’13:? MORTGAGE MORTOAoa Hun av
l-h...BungaloIt .......... -Snllx-.Andr.ead1J9.85QOQ- 9613. .00. BBISC -ZGQO- QO. Jillian-£1913.
mz-fllgh-St.,-Lani-- ................................ ....... -- - ........ -IIJaon ........
_¥ EXHIBIT C-OTIIEH REAL ESTATE
gmwmmm mo Loos-non c087 VALUE TEES“? 33.3333: 3333,52: WZTZOWEETG' ".3333? "M
5-33...Bungalox ............. 25m .00 PZCIIDQO. .7200 .00 "-29:93“ 311151942180» :9: 1:. 410.131.-“
I801-.L.-ouau-_at, ............. ....... ....... ....... lnaunma-- ....................
“‘th inlonnation and data shall beoonsidared and taken as partoftbeforagoing state-Int.
pa. mu. receivable dIscoII' med? ------------------------------------------------- ' """"""""""""""""""
F“ .mmodamn papa (r endorsement! {a 01’1“" """""""""""""""""" ’ """"""""""""""""
Have you any F0! M ...................................... - - ----------------- 9 ........................
mumlulbflith FamuchangodwithothersP--------"----unyoglgj-E- ----------------- . ------------------------
For litigadon on or tin-«tend? -------------------------------------------------- 9 ------------------------
As guarantor or bond-man? ----------------------------------------------------- 3 ------------------------
Other than above specified? ----------------------------------------------------- 9 ------------------------
I l. '50 W. haeby solemnly certify and declare that the above statement and representations constitute a true and accurate mt
"I mending. ...; ___________ January--12 ......... 1955.-
D". W ...... June-".14 ........ 1956.- Name ---------------------------------------------------------------

III-Ia. ______________

--_---------

Maw;

sum-cs5 on
occu'ATIou Jilldfint

IO

93

INDIVfifi3Ai a WngATION

FINANCIAL STATEMENT

         

ISHORT

FORM)

.... About “#59319 I _LlinBflfl l;
BANK OF LANSING, Lansing, Michigan

 

 

rou 7H! PURPOSE OF OCTAINIW AOVWS Fm TIME 10 TIME ON BILLS. NOTES AND OTHER COMMERCIAL PAPER SIGNED OR [m0 IY m unan-

scum. AND OF O'TAIMIG cm (EMMY. THE MEMO HAKIS THE FOLLOWING STATEMENT OF

N IUSINISS ON IN! ___,DAY 0'

I9

 

FIWIAL CONDITION AS N THE CLO“
AND CERTIFICS TO THE AwVE-NAMED .ANK THAT THE IMWHATIM HEREIHAFYER SET FORTH IS

IN ALL RESPECTS TRUE ACCURA“ AND WHITE AND COIRECTLY REFLECTS THE FINANCIAL CONDITION OF THE UNOELRSIGNED ON THE DATE AFGHEHCNTIONED

(FILL ALL IANKS. “TING "HO" OH "NONE"

WHERE NECESSARY TO COMPLETE INFORMATION I

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assn: LIAIILITIH Z
CAsII cu m AIIo III sum; -__,__L__ _fl )2} *3], 74 nous PAYAGLE T0 was (sum) L
nous "can.“ - . ...-LSIJXDO 0Q mores I-Avuu To omens Isa mu; /
AccouuTs accuvnu I ACCOUNTS "VA-LE Isa scrum) /{——
:gcwumséi c w I ..._- “.4 _..; TAXES DUE
SUIA ASH nmom VALUE
(no IIOT “MI IDA—I“.-- ________- _ ‘L‘__,_ 743 Ail RINT out 1
stcumTlts (In W) ‘54 300- CL, LOANS AGAINST UFE msunuc: ]
omen emu-IT Assns mount) 1“”, , ACCRUED EXPENSES /
CHATTEL MORTGAGES
__ ______ +___* r -__., REAL ESTATE HORTGAG£S _
REAL ESTATE ("I scan“; __ _ “fit * h _ _ _ ‘1 _ ____+ RESERVES ("(sz __ _ _ ___-_ 7
HACI-IIIIERY FURNITURE Auo rIxTuiIIs /
WHO III m; ____ I __ ‘ “.....-
"(PAID [new -4. _ A OTHER LIABILITIES ("MI I
OTHER ASETS (nu-av -—~ .4 - ' If
__ ”f - ‘ TOTAL LIAIIILmts
__ _ 9, NET WORTH (I no! mum ,. _. 4......l6 3.11075-
“-“ ___..- L. ”‘r‘“"‘"‘ CAPITAL STOCK (IIr Mum
__ _ __ __4 1 PREFERRED sIIAIIts I PA! .4,
¥ _"-___ __ cannon sIIAIIts I PAIL
¥ _ sumos
__ TOYAL —- ...- +— 1 371 111*: E._-:::_:=:I:21Al IQM
00'“!ng UWUTIE! A
LIAlILITY AS ENDORSER on ”0155 or OTHERS ___ ALL OYH£R CONTINGENT LIAIILI‘I’IES', (nun) j“
“wig” As GUARANTY on sunnv ron ours
LIAIILITT ton IuocImITs on suns PENDING __ TOTAL couTIIIcm LIAuLmts I
_F r 7 L-___.-————-.a===.
STATEMENT OF PROFIT AND LOSS
to: THE PERIOD Immune ‘ Auo moms
IT suns oruwrmc mom
COST or 00005 ”10.011128 INCOME:
TOTAL Immomzs AT 3:.
GIIIIII-Ic or PERIOD "mm-mus L__
ADD PURCHASIS DURING
PIER I00 CASH mscoums RECKIVEO”
. Z 0mm
owner $OTAL‘IFIVFII'76II'ITWI/ "
CLosc OFPE TOTAL - _
GROSS morn /
ADMINISTRATIVE If 0min Exams: /
. czucm. AIIo
SELLING sums; ""5357 —I s. -- ~ I— - - /
Mann's SALAIIT _ ___.L / C‘s" mscoums “KL-*4“ ' /
mummy. A no news 1
mum; unnus J 1 OTHEIL
Chink / TOTAI -
NET PROFIT on LOSS To / "
TOTAL NET worm on sum us

 

 

 

 

 

 

 

 

 

 

 

 

m. M _..-”.r.: ICWIAI'IJ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* I. ”a ‘ qt} _ __ _ .
Inn a! nu . taunt-AL nun: om ' WY

.- _L _.....L _ - . .-- ___.-. _. _ 7 I . . . I _ -_ - - --....

I I ‘
__._ __ _..- __-- . __mwm_- -- _+.- ___ _ -.--.. .._._.. _ --._.__--LA -.. I _ I .. - f __

-—-~ 1 l i

_ __«_-___.__ __-”. -. . . ---- ---——-__ -- - ——.----..__ .‘-..L_..-_.___.___.___.__- - m ...- ---- , . A . . __-

YOTAL DUE IO BANKS I 3

DUE TO 07H!!! (lb-‘3 "an M out fl.“

 

 

 

 

 

 

 

-- ._ M” ”— —— m G (unno- ' I _ ouwm I! Am!!! W V '“Iu 0"" “IOU!“
__.. .....- __.... _.....L...__L_.. _ . . L _ , , _ _ . , . , __ -__.._-- _- . _,
I I
_ .. - _ L I I _ __ - I _ -
I i I
_ ...—fi__ -..—___. _ ..-- “___. -m __.. ..-..___._.--..._._-__J...._-.._- , , 7-- - L L L V .. A _ __ - .. . _ .. I . . L - -.....
ALI OTHER mars HUT >HOWN ABOVL ' _ __- _
I
TOTAL DUE To OIHCRsfis
MES; “- ‘ ——:’ ‘ *‘ ‘._ ’ W ‘ ‘ _ - ‘_ _‘* T; T’ ‘ — I I ' T. ‘I— ""T': 5-4.1- _ __.- . . _ ___... _-Ls :— -._.' ."_‘_.'.,‘;.:-‘._.‘__‘T_=
IEAL ESTATE
' “‘ _—""“ ‘ " " ‘ Y T‘ “’ ' ' “ H“" I “ ' ‘ ' I ' “‘“‘—"‘ ' “ ‘ T ‘ ‘ xT " " "‘
I In. I _ : I f m"""“ HAITI I emsx
IQAIION AND Nat-"Hon Munro“ 0' (LA! I Am sun VAI'N * Milt "nu-Aux! I'ltsnu VAIUl 7* i I "u,“ m‘ 0“
._ ' ‘ I I I I Anomn | man om I
-__.. _. _- _- _ __ -_ _ _ _,___ _ 2“” _I _~ ___ L. _. “__-. . . - I . T"' - -. -__._.._____
i (s ' I I I: s I I I
- . _-_____-_--________ —-—-A -.-..-._ NIH-__.-‘A .. _--“ I __.-___“, --.-«.....- I- - I — A --. .41 ,- - _
E ‘ I ' '. I
_ I “'" L? T I “ ‘ i "I I I" I ‘ ‘ I I I’M“—
I I ‘ - ' ' T t '1
i I ! - - .
A.” - ~~~~~~~~~ ._ _ ___---“-___ _ _ I" . ___- _‘. ___. __.—___ M- ._ _.- —_ ._.,_ s . _ -_._...___ I ___- . - _.-- .. __A..__—._. _..—___—
---- ‘ t I I I 5
7NE LEGAL AND EQUITABLE TIILE TO ALL YHE REAL ESTA“. lISILD ABOVL IS SOL fl Y IN MY NAME EXCEPI AS IULLOWS
IECIIIITIES OWIED
— -'—"‘_‘—" ., - 7- r A - — 1 -——_ — - - “ - _
'm‘::: m' I I ' Iwo-T RI(l'VllII
"a", I M ,4 IIPIIUN a! “(VIIIV ! III-III VALue i t”, v”. I to Dun-I NHIGIO
-' ‘ “"' ‘-' f I , < -- 6 — v A -- __A ,
-LSO . . East Ohio Street thy Co., InC‘SOOQ=AEL300--; No one
.4_~ LFord Motor Co - _ . 300“; I
—— _--- ____I_ , , I. _ - I _- _ ..... i - - ,0 L w- 0-- -.. --
I I ' .
:-—- “___. ._._. . _Hm _, _ ,,_ ._ ,__4_ . __.. __. , A I A.“ - . I I
U?! IISIIAICE

T I _,_ I I

IOIAL (Aw ' YOIAL LOANS I
wnuthn ' AoAmsT I unununv l IO um). you” .o, “5.5mm
“wt muu I I

IAKI Alfillfll
OI MILV

(MA-I

 

_..- --.._ - .4
I

L__..- “#1,,“ - _ .- , I I , ,,L-_.____,,r_ - --. v«-~ -— ---,___, __s--
Nationalflmfe OLA.) I‘ SOOO-L-I‘ lOll-qf _ - I Hire and . . I -
" " “__.; -5.QQO:..-I_QQQQL--;--..____-_l__--_chlldranL__- -.LL__

 

» -..—_.-
‘.——-—_..._-

--Honth- Central Life 2000-4 737.44 If , I f _
W’I;"”’“”T“ ” “7&274200-‘3‘TOOO‘ -—-~——-- —fl—:-=::.~_»::T..—- .-—_--._r_..s ..-- ———r_—_

 

OIIIEI IISIIAICE
MM

 

 

 

 

 

' — ————-——- u - ___-_..-— -——-————.———-— ~ -~—-—---~—-- - Ir -- ~ ‘- -—-—--T ”*7 " -- - - * - --— —-— -~— .- - __
‘m I I
4mg “Ml".uc I (AIDIID ova . mm" “5.9,.“ I Auoum
k—fi—‘—_ -_ I.“ . . I -——_ —————"—--—-—.— - — ~— ~— -—.
. A ._____.-_.. I --- _ w--- , . I--- --_
\-_~ ----.._.- I
.V_ _ ' _ I - ~ ' ¥ ‘ “ b --

I I
L k -_ l _ I _ _ _, ..... _ - _ _
__s ' I I 5 —_ “—..—-

N.-. I ~- ~~—— - — -- qr _.-—.7” -—— »-—— . w _,,__ — — 1 ——~ - --- -~-----1‘-A—-———---~-<— +77%“ —~ — . «__.—__.
— ’ ’ i
"‘~-—--_.I___-,_ _. - L - _ A -n— .-~— __,__L ‘— ---— —-—.—-~-—~+v~ , -,_. ,_

I I I t
M‘ ‘________ ___ ~_.__,___, , f - _ - ...- ..__% ,_ _ __ _._-_______ f

I

1 ___.____V___~__I____---____- _M ___. ___L__ _ ___ -_ -,_ - <_ I

 

"I SUBMITTING THE FORIOOING STATEMENT THL UNUERSIGNED GUARANTEESHSACCURACY WIIH THE INTENT THAT II Bf RELIED UPON av Tm AIORI‘sAID

0

MIX m EXTENDING CREDIT To THI unnCRSIGHLo AND WARRANIS THAT _______HAS NOT KNOWINIQII Y WIYHHELD ANY IM ORHATIoH THAT HIGH! AH LCT

CRE --- -

coug'IIISLSK ”‘0 THIE UNDERSIUNED EXPRESSLY AGREES To mm” IMMEDIATELY SAID BANK IN WRITING or ANY MATERIAL CHANGE III

BANK III GRwHEIH‘ER APPLICATION MR IURTHIR CREDII IS MALI! up ~01 AND IN THE ABSENCE OF SUCH WRITTEN NOYICF IT IS EKPRL‘SL '

ADDITIONALAM'M' NEW on communm. CREDIT HAT an ON THIS srATIMI HT A5 HAVING THE SAME FORCE AND EFFECT As IF
CREUIT Is Riouurso 0R EXISTING CRwIT EATCHDCD 0R commuto

_. _ FINANCIAL
Y AIJRILD THAI SAID
DLLIVLRED UPON THE DAIE

“"0 fl .mnaingkmhlgmfl--fl ..... S'GWWE -.
""5 ~15--- 0" 0F _ .- June ,_ ___... so 55.. _ ...”

 

 

 

 

~———-—--- L
”Hm—h.—
v...

‘— .—--- --- ,_A_ ___- -.__._.__—_ % “_..

 

“I. I‘dO—IW

mt

HIT _.

T“ *3
:IMH

Eli!

HI.

I . .

fir-

PERSONAL STATEMENT

IIAIAE WEMIEMIBL

BUSINESS OR
OCCUPATION _

TO........._.__..- _- _.L_ ___---

SIGNED. AND OF OBTAINING CREDIT GENERALLY. THE UNDERSIGNED MAKES THE FOLI OWING STATEMENT OF“
_. AND CERTIFIES TO THE ABOVE NAMED BANK THAT THE INEORMATION HEREINAFTER SET FORTH IS

OE BUSINESS ON THE _A.__DY OF

SWMD

 

95

INDIVIDUAL OR CORPORATION

FINANCIAL STATEMENT
ISNORT roman

 

_AODRESS_ 1.00.2-3..- Pina_.-fij.nent._ --- _ I - _ ,.

NAME 0! OAK“

FOR THE PURPOSE OF O'TAINING ADVANCES IROM TIME TO TIME ON BILLS. NOTES AND OTHER COMMERCIAL PAPER SIGNED OR ENDORSED BY THE UNDER-

m.- m A00 m I?
In. WAGE“ mm
AM was “warm

{REVIEWED AND AM” I”)

Jm- 33.11-1950.

-..--—

_FINANCIAL CONDITION AS OF THE CLOSE

I_9
IN ALL RESPECTS TRUE ACCURATE AND COMPLE TE AND CORRECTLY REFLECTS THE FINANCIAL CONDITION OF THE UNDERSIGNED ON THE DATE AFOREMENTIWED

(FILL ALL BLANKS

WRITING '"NO OR' 'NONE WHERE NECESSARY TO COMPLETE INFORMATION)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ais—fi‘i'z’tfiim - ‘ T“: '"___~__ ’ " _:LIAIILITIE8 --._-._...-- _:
‘ T j _" T T_'_”-"_" T "_ "T' .... _"'—’”"."V
cm ON IIAIIo AND IN RARI-zs L,-,__.,__ _ _ } 8; 500 .00 1 NOTES PAYABLE Io BANKS Lsu scutszI . _- 1..-“..- _.
NOTES RECEIVABLE __* _..- ____ -._... , § I - ‘ NOTES PAYABLE TO OTHERS «set autumn, _-.,-_ [ __ _.. _
ACCOUNTS RECEIVABLE ______ _ _ -- __K , ' I _ _ ‘ ~ _. ACCOUNTS PAYABLE Isa scutwu) _ _ _ __._,_ -_.- .... A __{______ {__- _
MERCHANDISE ___,“ l 500 00. ”us DUE ___--.__ _.- _ _-__ - , u“ , _
LIFE INSURANCE CASH SURRENDER VALUE 1 783 00 RENT DUE
IN MI WT LOANSI- _______________ -- ‘ ‘ -__-._..._~.__,. _..___ _ -_ __,_ _ F _ _ _
SECURITIES Immn__ _. 1‘ _ _ LOANS AGAINST LIFE INSURANCE__ ..- 4h”, 1 _ , w _
OTHER CURRENT ASSETS Inc-um“ ___-_{ _ _ I 1* ACCRUEO EXPENSES - _--- _ - _ --- -.L _L-- -. ,
WWW- .. , ___.L ---- CHAYTEL MORTGAGES __.- . -- _ --...L ...... - j -..-
-mzmm.ut_--_ .. 8i 8 0 00...} REM ESTATE NORIGAc-Es -. ..... _._ , 9T 50 00
zamggfigfiflww. “ n w L- 17: 000 ;00 I. nesmvss .. I--. -_ “TM“ ...-..
UR AND H uTI I ‘
lwomwsmus.__ _ ___‘“__ - «Full! #50 ;OO - , -_ --- - --L -__,__4,___ . _
PREPAID EX"~SES_____ _._-__-__ ___. -w- _ --———JL_—-'_."I|> ’ OTHER LIABILITIES IIIEMEEI_ __ ___ “fig- 4 __-
omen Assns (Inn-up“ -.W..- i._ _ - 7, _ -V i _. __-“.-- _ --L-_
Wiflumr __ -- _, _-J '850 ‘00 -. an LIA-units“--- L-.-.3[ 800100--
Multan- _..---_____..__- M} _- AI 000 100. NET WORTH (Ir mvmcooonrto._________ _ ~ ___+_H__‘5‘ 133 00
_____ ”-...--”5 .- _- 4 CAPITAL STOCK (Ir ImmAttoL._____-._, ,- ___- _ -- “ ”IL" _
_ _- - _ - _ _ J _ - _..“u PREFERRED” SHARES 3---- _.PAR _. _
_- --- ' _ 4P 1 common-“ SHARES 3..., -.PAIL .
.0 - _ ”I 1 WM, ----,__L__L ..---- L
TOTAL

‘-
....~

~'..-1:1.—‘_:.‘_’:. ,. Z ‘

ggmgun LIA-mm:

 

 

 

 

LIABILITY AS ENDORSER ON NOT ES OF OTHERS
LIABILITY AS GUARANTY OR SURETY FOR DEBTS
OF OTHERS

‘

LIABILITY FOR JUDGMENTS OR SUITS PENDING _-

 

FOR THE PERIOD BEGINNING_._-

-, __ V _ r:
I

NET SALES _ ____ _

cosr or 60005 SOLD
TOTAL INVENTORIES AT as
GINNING or "moo
Mtg PUORCHASES ounmc

TOTAL I
oeoucv mnu‘" INVENTORIES ,
AT CLOSE or PERIOD '

 

 

-- - __fi-—‘ . .

___AND ENDING

 

GROSS PROFIT—

-—_-— _

 

 

ADMINISTRATIVE. GENERAL. AND
SELLING EXPENSES. ‘

 

 

 

 

 

 

 

 

 

! I

f i

MINORS sump—‘4» ‘L ____ , ,_ I f

“canon _ I" ,_ . I

mum; ("uses—___ +_..Lr _-- I a

crank 29g? 8 !
TOTAL % 39 If % '

..-- ..
L. ......

m. I... Annual “Ivar. ”acumen

 

IF

 

 

 

 

' ALI OTHER (ONTINGENT LIABILITIES: IITEIIE)

 

...- .-L -,—.-*”_W

TOTAL CONTINGENT LIABILITIES”

 

..L._._ “_‘,_“_ _--...—--
.._-—..-..—.—.__.—_‘..-—-——-._—»--

 

STATEMENT OF PROFIT AND LOSS

—-__.._..___. — ._

.g. . .

OPERATING PROFIT L , , 7 4.4
OTHER INCOME I
INVESTMENTS-__, _ _L I :
CASH mscoums RECEIVED

OTHER-

IoIAL,._. m- +0-. _',_

OTHER EXPENSES
INTEREST_ _,,_ ..
CASH DISCOUNTS GIVEN
BAD DEDTS
OTHER-

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“...—___.—

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TOTAL _ ...—___.
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NET WORTH OR SURPLUS ,,,

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ALL OTHER DEITS NOT SHOWN ABOVE '
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THE LEGAL AHD EOUITABLE TITLE To ALL THE REAL ESTATE LISTED ABOVE IS SOLELv m MY NAME. EXCEPT As EDLLows ___.Ian‘I‘.

“CIIITTES OIIED
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TOTAL CASH TOTAL LDAIS
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IN SUIHITTING THE FOREGOING STATEMENT THE UNDERSIGNED GUARANTEES ITS ACCURACY 'ITH THE INTENT THAT IT BE RELIED UPON BY THE AFORESAID

IARK III EXTENDING CREDIT To THE UNOERSIGNED AND WARRANTS THAT_______
AND THE UNDERSIGNED EXPRESSLY AGREES To NOTIFY IMMEDIATELY SAID BANK m IAIRITIHG or ANY MATERIAL CHANGE IN__~FINANCIAL

CREDIT RISK.

HAS NOT KNOWINGLY WITHHELD ANY INFORMATION THAT MIGHT AFFECT

 

CONDITION w'HETHER A" I
LICATIoH FOR FURTHER CREDIT Is MADE DR HOT AND IN THE ABSENCE or SUCH WRITTEN HOTICE IT Is EXPRESSLY AGREED THAT 5AI
u“ m Gum,“ "a, 0R commumc CREDIT MAY RELY ON THIS STATEMENT As HAVIRG THE SAME FORCE AHD EEEECT As IE DELIVERED THE DATE

ADDITIMAL

93.“ I .n.1ng I: ah! gln SIGNATURE

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CREDIT IS REQUESTED 0R EXISTING CREDIT EXTENDED OR CONTINUED.

 

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BUSINESS .... m mm»
""' "- “ INDIVIDUAL 0R CORPORATION mmwm' mm...
FINANCIAL STATEMENT (mum mo m as)
(SHORT FORM)
sznphanLW__ _ I __.,. -_ _ I £911.“. 31‘. 1.1.2.4956
INTI)

&“c&‘f‘n3u'_- ' I I- . 7-._, -._-_Aooatss.,lQQ2_BLW. __.-..___ - ___-..
m BANK _QF LANSING, Lansing, _Michgggn

___—__.... .. __--___.____._.____.__

’NA‘ N M~I

M THE W N OITAINING ADVANCES FNM TIME TO TIME ON BILLS. NOTES AND OTHER COMMERCIAL rm SIGNED DR ENDORSED IY THE m-
SIGNED. ANDDF “TUNING can)" (SMALLY. THE UNERSIGNED MAKES THE FOLLD'ING STATEMENT OF___ FINANCIAL CONDITION AS OF THE CLO“

W USINESS ON THE ___..DAY OF______, I__._, AND CERTIFIES TO THE AwVE- NAMED BANK THAT THE INFORMATICNI HEREINAF'TER SET FORTH IS
IN ALL RESPECTS TRUE. ACCWTE AND COMPLETE AND CORRECTLY REFLECTS THE FINANCIAL CONDITION OF THE UNDERSIGNED ON THE DATE AFOREMENTIMED

 

(FILL ALL DLANKS. URITING ""NO ON "NONE" WHERE NECESSARY TO COMPLETE INFORMATION I

 

 

 

 

 

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ASSETS ______444H__ 44444" _ LIAIILITIES __4__ _____ __4_____4 _
N _ _ ..- __. n.4,... _--

usu on mo mo m cums fl” _____7 I ._ __ 8 5061—00“ was Pan-L: T0 nuns (In mm»..._...-_Ir__I __.J ___ __

WTES RECEIVABLE
ACCOUNTS RECEIVAIE

NOTES PAYAKE To OTHERS Isa scmn__,___*-v-- ___.--I»-._ “AI— --- -
ACCOUNTS PAYABLE Isa REGAN-___- __.“ __,r, ..-.-- I“. ~Ir—— __

 

 

 

 

 

 

 

 

——~—-—--— ———-——-A-+ -- --_.. m— v- ..- _ 71

NERCHANOISE . _ .-- ”___- _ .SQQIQQ uxss out _ ___ ___“ I -._-,__4 _____
LIFE INSURANCE CASH SURRENDER VALUE

too ~01 osmium-II __ ____~._,___ --I———— _- “I" I- I RENT out 4-.” * __ 4r -- --- 4—4 ”L"...

SECURITIES Isa am) 44 ____ __ _ ,_ 4, LOANS AGAINST LIFE INSURANCE--___-__ ___... __w . .__.‘I.-_.___... It __-

OTHER CURRENT ASSETS ("sz ,_ 0” __ , _ _ I ACCRUED EXPENSES "___“--- .. ___..h -0..." __- .- .__ , _.. A.--

 

 

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CHATTEL MORTGAGES Wm __M W” I-_.fl_,___...I_.__H.___T-..._.._-I-I ”L,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-__, L. ”___ _ ._ V ‘ I 'fi‘I REAL ESTATE MORTGAGES , _ -__, - , _,_____»- I_____
REAL ESTATE (mscmuu ......L .- M, “L. . . ~ - .. m RESERVES ("‘"u‘ —- -- >~ - - - - m-IIn—uww I _.
I‘ACI'IINEITY FURNITURE AND FIXTURES F—
(won-muss» _ 11 450 on. .. ___._--_I _-__ , ,v... .- ,I___
PREPAID EXPENSES _ _ _ 4 OTHER LIABILITIES (Iva-Inn --. I- -.- _ __ ___._.. 7-...-. __--
_L - _. I. I 4 L
OTHER ASSETS ""an ____ .___ 44________44 4__4____4 _ _ 4 _ 4 __ , __ ._ _
_________________4_____ ___ 4 __ _ _~__ _ “_w ___ 4 _ _ 4____ _ _ lb- _, TOTAL UADILITIESW__I_-_-,____ _. I.__._
___. _ _4 _ ___ 4_ 4 _ _ 4 _-4 NET mm unm Mntto:w-_ _.,_-_,4 __.20 450 00
7 V
_ I __ __ _ 1 ._ CAPITAL STOCK ('IWATEDI—_.._____.__.... -__.__ [__..mm I»- I_, 4_..__,
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mm UAMLITIES __.__ _

 

 

ALL omuz CONTINGENT LIABILITIES; IIIEMIIE)

—————— ——-— --— - 1"
LIAIILITV AS Euoonsm on nons or omens-_____ ___. I .7 I- . I
E :11 IOTAL commum LIAIILITIES_

LIABILITY AS GUARANTY OR SURETY FOR DEBTS
OF OTHERS

 

 

——————r--——-—-- -..__ - V...—

 

 

 

LIABILITY FOR JUDGMENTS DR SUITS PENDING .--, , 4-91:3-

__._ _..- -w‘ - *1:

 

STATEMENT OF PROFIT AND LOSS

 

~ ._.—->.——.—- __...—

'ON THE PERIOD DEGINNING-__4__ __ _ __ ,AND ENDING—_..--- ___ w--- __

 

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mum_ I h 4; 584.72’ZMQCL4 omunmc raonn_: :: 1‘ ' I - .-.__I-? m 9L

(1%?“ GOODS SOLD; OTHER INCOME : ‘
AL I -
NVENTORIES AT BE m I "‘yggngu'rs 4 _-~___._ 4 __- I—~~--- _ _..

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mu moo HASES OUMNG CASH onscounrs RECEIVED_..

 

 

 

 

 

 

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muons may I *4?wawa as» mscoums cum ‘_ ., I _ THMI“
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TOYAI DUE TO 01mm ' s
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7HE LEGAL AND EOUHABLE NYLE TO ALL IN! REAl ESTATE USTFD ABOVf IS SOLELY IN MY NAME, EXCEPY K5 FOLLOWS

 

 

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m SUBMITTING YHL tomooxm. suuumr me Momsucum GUARANTEES ns accumcv mm rHE mum mm H B! RU no UPON BY rm Aromum
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99

MICHIGAN NATIONAL BANK
ITEYS OF IFPORTANCE TO THE BANK

WHEN CONSIDERING A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the
item which you consider most important, etc. My list may
not include some items which you believe should be in the
"Top Ten"; if not, will you please write them in on the lines
provided and assign them a rank?

 

ITEM BAEE
1. Character of applicant . . . . . . . . . . . . . . __l_
9. General business experience of the applicant . . . .__g_
3. Applicant's experience in the restaurant field . . __2_
4. Applicant's training in the restaurant field . . . __jL_
5. Applicant‘s previous record in repaying loans. . . _____
6. Net worth of the applicant . . . . . . . . . . . . __§_
7. Real estate which can be used as security. . . . . _____
8. Stock and bonds which can be used as security. . . _l9_
9. Location of the proposed establishment . . . . . .
10. Potential to be derived from the operation of the
business . . . . . . . . . . . . . . . . . . . . . __£L_
ll. Assets and liabilities of the business . . . . . . __§_
12. Future business prospects. . . . . . . . . . . . . __2_
13. The importance of a co-signer to the loan applica-
tion . . . . . . . . . . . . . . . . . . . . . . . _____

14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .

prospective restaurant operators.

lCO
AYERICAN STATE BANK

ITEMS OF IMPORTANCE TO THE BANK

WHEN CONSIDERING A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from

Will you please rank ten

(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the

item which you consider most important, etc.

My list may

not include some items which you believe should be in the

"TOp Ten"; if not, will you please write them in on the

provided and assign them a rank?

...:
O

\OCO-QOUWJ-‘Ulm

5.:
O

11.
12.
13.

14.
15.

ITEM

 

Character of applicant . . . . . . . . . . . . . .
General business experience of the applicant . . .
Applicant's experience in the restaurant field . .
Applicant's training in the restaurant field . . .
Applicant's previous record in repaying loans. . .
Net worth of the applicant . . . . . . . . . . . .
Real estate which can be used as security. . . . .
Stock and bonds which can be used as security. . .
Location of the proposed establishment . . . . . .

Potential to be derived from the operation of the
17118111888 0 o o o o o o o o o 0 o o a o o o o o o o

Assets and liabilities of the business . . . . . .

Future business prospects. . . . . . . . . . . . .

The importance of a co-signer to the loan applica-

tion a o o o O o o o o C o 0 o o o o O o o o o o o
Leasehold provisions and limitations . . . . . . .
Applicant's marital status . . . . . . . . . . . .

Equipment--is it modern and in good repair
supporting business (compensating balances)

lines

RANK

101

EAST LANSING BANK
ITEKS OF IKPORTANCE TO THE BANK

WHEN COHSIDERING A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the
item which you consider most important, etc. My list may
not include some items which you believe should be in the
"TOp Ten"; if not, will you please write them in on the lines
provided and assign them a rank?

1. Character of applicant . . . . . . . . . . . . . .
2. General business experience of the applicant . . .
3. Applicant's experience in the restaurant field . .
4. Applicant's training in the restaurant field . . .
5. Applicant's previous record in repaying loans. . .
6. Net worth of the applicant . . . . . . . . . . . .
7. Real estate which can be used as security. . . . .
8 Stock and bonds which can be used as security. . .
9. Location of the proposed establishment . . . . . .

10. Potential to be derived from the operation of the
bUSineBS I O O O I O O O O O O I O O O O O O O O 0

ll. Assets and liabilities of the business . . . . . .

HIS lwlfilfilmtlmlrklka

12. Future business prospects. . . . . . . . . . . . .

13. The importance of a co-signer to the loan applica-

tion 0 O O O O O O O O O O O C O O O O O O O O O O

14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .

llll

102

EAST LANSING BANK
ITEFS OF IMPORTANCE TO THE BANK
WHEN CONSIDERING LOAN APPLICATION
The primary objective of my thesis is to obtain in-

formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the
item which you consider most important, etc. My list may
not include some items which you believe should be in the
"Top Ten"; if not, will you please write them in on the lines
provided and assign them a rank?

ITEM EAEK
1. Character of applicant . . . . . . . . . . . . . .
2. General business experience of the applicant . . .
3. Applicant's experience in the restaurant field ...
4. Applicant's training in the restaurant field . . .
5. Applicant's previous record in repaying loans. . .
6. Net worth of the applicant . . . . . . . . . . . .

7. Real estate which can be used as security. . . . .

Stock and bonds which can be used as security. . .

0. Location of the proposed establishment . . . . . .

10. Potential to be derived from the operation of the
business . . . . . . . . . . . . . . . . . . . . .

11. Assets and liabilities of the business . . . . . . 4

12. Future business prospects. . . . . . . . . . . . .

13. The importance of a co-signer to the loan applica-

tion 0 o o o o c o o o o o o o o o o o o o o o o o

14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .

prospective restaurant operators.

103

BALK OF LAKSIH?

ITEYS OF IKPORTANCE TO TQE BANK

WHEN COSSIDERIXG A LOAX APPLICATIOH

The primary objective of my thesis is to obtain in-
fornation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from

Will you please rank ten

(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the

item which you consider most important, etc.

Fy list may

not include some items which you believe should be in the
"Top Ten"; if not, will you please write them in on the lines
provided and assign them a rank?

ITEK

 

Character of applicant . . . . . . . . . . . . . .
General business experience of the applicant . . .
Applicant's experience in the restaurant field . .
Applicant's training in the restaurant field . . .
Applicant's previous record in repaying loans. . .
Ket worth of the applicant . . . . . . . . . . . .
Real estate which can be used as security. . . . .
Stock and bonds which can be used as security. . .

Location of the proposed establishment . . . . . .

Potential to be derived from the Operation of the
business . . . .

Assets and liabilities of the business . . . . . .

Future business prospects. . . . . . . . . . . . .

The importance of a co-signer to the loan applica—

tion 0 O 0 O o o 0 I O O O O O O O O 0 O I O O 0 O
Leasehold provisions and limitations . . . . . . .

Applicant's marital status . . . . . . ... . . . .

RANK

2

 

U1

 

prospective restaurant operators.

104
ER. STEELE

ITEFS OF INPORTANCE TO THE BANK
WHEN CONSIDERING A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from

Will you please rank ten

(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the

item which you consider most important, etc.

Ky list may

not include some items which you believe should be in the

"Top Ten"; if not, will you please write them in on the

provided and assign them a rank?

11.
12.
13.

14.
15.

ITEE

 

Character of applicant . . . . . . . . . . . .
General business experience of the applicant .
Applicant's experience in the restaurant field
Applicant's training in the restaurant field .
Applicant's previous record in repaying loans.
Net worth of the applicant . . . . . . . . . .
Real estate which can be used as security. . .
Stock and bonds which can be used as security.

Location of the proposed establishment . . . .

Potential to be derived from the operation of the

business . . . . . . . . . . . . . . . . . . .

Assets and liabilities of the business . . . . . .

Future business prospects... ... . ......... .

The importance of a co-signer to the loan applica-

tion 0 O O O O O O O C O O O C I O O O O O O O

Leasehold provisions and limitations . . . . . .

Applicant's marital status . . . . . . . . . . .

lines

105
AKERICAN FLETCHER
ITEFS OF IMPORTANCE TO TFE BANK

WHEN CONSIDERING A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the
item which you consider most important, etc. Hy list may
not include some items which you believe should be in the
"Top Ten"; if not, will you please write them in on the lines
provided and assign them a rank?

 

 

 

ITEII M
1. Character of applicant . . . . . . . . . . . . . . __g;-
2. General business experience of the applicant . . . __1_
3. Applicant's experience in the resaturant field . . __;L_
4. Applicant's training in the restaurant field . . . __2_
5. Applicant's previous record in repaying loans. . . 2
6. Net worth of the applicant . . . . . . . . . . . . __fl_
7. Real estate which can be used as security. . . . . __§_
8. Stock and bonds which can be used as security. . . __§_
9. Location of the proposed establishment . . . . . . __2_
10. Potential to be derived from the operation of the

business . . . . . . . . . . . . . . . . . . . . . __1_

11. Assets and liabilities of the business . . . . . . 8
7&53

 

12. Future business prospects. . . . . . . . . . . . .

13. The importance of a co-signer to the loan applica- 4
tion I O O O O O O O I O O O O O O O O O O O O I O 2' 'é

14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .
Equipment-~is it_m9d§P§ gng £02d_PEP§1§ .....
supporting business (compensatory balances) _ _ -

CD
KN

prospective restaurant operators.

106
FIDELITY TRUST

ITEES OF IKPORTANCE TO THE BANK

WHEN COESIDERIN? A LOAN APPLICATION

The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from

Will you please rank ten

(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the

item which you consider most important, etc.

Ky list may

not include some items which you believe should be in the

"Top Ten"; if not, will you please write them in on the

provided and assign them a rank?

CO -\1 ON U1 k W R) H
O

‘O
O

10.

11.
12.
13.

14.

ATE:
Character of applicant . . . . . . . . . . . . . .
General business experience of the applicant . . .
Applicant's experience in the restaurant field . .
Applicant‘s training in the restaurant field . . .
Applicant's previous record in repaying loans. . .
Net worth of the applicant . . . . . . . . . . . .
Real estate which can be used as security. . . . .
Stock and bonds which can be used as security. . .
Location of the proposed establishment . . . . . .

Potential to be derived from the operation of the
buglness O O O O 0 I O O O O O 0 O O O O 0 O O I I

Assets and liabilities of the business . . . . . .

Future business prospects. . . . . . . . . . . . .

The importance of a co-sfgner to the loan applica-

tion 0 O O O O O O O O O O O O O O I O O O O O O O

Leasehold provisions and limitations . . . . . . .

Applicant's marital status . . . . . . . . . . . .

lines

 

107
SECURITY BABE
ITELS OF IKPORTAHCE TO TEE BANK
WHEN CONSIDERING A LOAN APPLICATION
The primary objective of my thesis is to obtain in-
formation concerning the policies and procedures which your
bank uses as a guide in reviewing loan applications from
prospective restaurant operators. Will you please rank ten
(10) of the following items in the order of their importance
to the bank, putting a one (1) in the blank following the
item which you consider most important, etc. My list may
not include some items which you believe should be in the
"Top Ten"; if not, will you please write them in on the lines
provided and assign them a rank?
ITEM
1. Character of applicant . . . . . . . . . . . . . .
9. General business experience of the applicant . . .
3. Applicant's experience in the restaurant field . .
4. Applicant's training in the restaurant field . . .
5. Applicant's previous record in repaying laons. . .
6. Net worth of the applicant . . . . . . . . . . . .
7. Real estate which can be used as security. . . . .
8 Stock and bonds which can be used as security. . .
9

Location of the proposed establishment . . . . . .

10. Potential to be derived from the operation of the
business 0 O O O O O O O O O O O O O C O O O O O 0

LU
«0 I lelelelml M M:

 

ll. Assets and liabilities of the business . . . . . . 4

12. Future business prospects. . . . . . . . . . . . .

13. The importance of a co-signer to the loan applica-

tion I O O O 0 O I C O O O O O O O O O O O O O O O

14. Leasehold provisions and limitations . . . . . . .

15. Applicant's marital status . . . . . . . . . . . .

Belatigngh;p_of net worth to_out§t§ndipg_debt _ _

M~|~| ll

§alu£e-0£ Eorrewins ...............

109

AKERICAK STATE BANK
LANSING, HICHIGAN

July 17, 1956

0

Fr. Georgios P. Kostarides
608 W. Ionia .
Lansing, Vichigan

Dear Fr. Kostarides:

We regret to inform you that the applications as presented
in your plan for the purchase of restaurant X have been re-
Jected by our loan committee.

We do not feel that the loans under any of the three plans
can be considered as bank loans, mainly because of the time
requested for repayment. It is not the policy of our bank
to grant term loans as long as ten years, however, if this
problem were remedied, security, other than the furniture
and fixtures, would be required. From the balance sheets
furnished, it is doubtful if this security could be supplied.

There is no question as to the character of the borrowers,
but the capacity for repayment under any of the plans could
be considered doubtful.

The solution of this problem would appear to be the purchase
of the business on a land contract from the present owner,
who would carry an amount equal to that requested from the
bank.

We believe you have presented the applications on a very
complete and business like basis, and we appreciate the
opportunity of reviewing the situation. If you have any
questions, or we can be of any further help, we shall be
happy to do our best.

Yours very truly,

Joseph B. Foster,
Vice President

J8F:mt

AHERICAH STATE BANK
LANSING , I'CICHIGAIJ

Karch 8, 1957

Mr. George P. Kostarides
608 W. Ionia Street
Lansing, hichigan

Dear Mr. Kostarides:

I have re-checked the qualifications for Small Business Ad-
ministration Loans and find that such a loan as you outlined
in your problem probably would not qualify. For example, a
pamphlet dated September 1954 says "when the loan is to effect
a change of ownership of a business, such as purchasing a
going concern or buying a partner's interest" financial
assistance cannot be provided. A later pamphlet dated July
1956 states that a loan will be ineligible...”if the loan
would be for the purpose of providing funds for distribution
or payment to the owner, partners, or shareholders or re-
plenishing working capital funds previously used for either
of such purposes".

The loan you seek is, as you know, a loan of a Capital nature
and it is my Opinion that it is not bankable for this and
several other reasons.

A. Capital Nature of Loan - it is generally considered
that it is not a bank function to furnish long term capital
funds for the purpose of buying or operating a business.
Such funds should be provided by private funds furnished by
the owner, partners, or stockholders of a business. It is
illogical to expect a bank to loan 830,000.00 as outlined
under either Plan I, 2 or 3 at 6% (or even 7%) when the re-
turn on a $15,000.00 loan by the owner under Plan 1 or 2
would yield 33% or more (see D-4) and under Plan 3 when the
investment of $20,000.00 by the partners would yield 28% or
more (see D-4). On such a basis it places the bank in the
position of investing the major portion of the funds to
purchase a business and bearing the major share of the risk
inherent in the operation of such business while the owner
bears a much smaller responsibility from a financial stand-
point and yet realizes the major share of the profits.

B. Term of Loan - Naturally a bank'must make loans to
its customers within the community to fulfill one of its
Primary obligations but any term loan of 10 years would be
the exception in any bank loan portfolio and would probably
be made only to a going concern that had years of proven
earnings and years of previous experience in a stable business.

110

Normally a loan for a 10 year period of time would be secured
by a mortgage on real estate. The amount of this mortgage
would be based on 60% of our appraised value. Inasmuch as

no real estate is involved in this transaction nor is avail-
able individually as security from the purchasers, it cannot
be considered as collateral for this loan.

Today's Municipal Bond Narket presents an interesting situa-
tion in regards to risk loans. Assuming that a bank is in
the 52% tax bracket for corporations it actually is possible
for them to purchase 10 year municipal of a high grade at a
yield of 3.15% or 3.20%. Inasmuch as this income is tax
free the yield is actually greater than a loan made at 6%.

C. Equipment - even if the term of the loan were short-
ened considerably the equipment listed would be of little
value as collateral to secure this loan. True, it has value
but only to a going business. If the loan should go into
default this equipment could bring as little as 10¢ on the
dollar in a forced sale.

D. Fiscellaneous Considerations - some questions have
occurred to me concerning your problem as outlined.

l. Andreadis - how successful has he been in Operat-
ing his present business. His ability could be substantiated
by operating statements of his business over the past several
years.

2. Estab1ishment X
a. What is past history of profits over past
several years.

b. Is owner trying to sell or are you trying
to buy; might make difference in terms.

c. Are there any U.S. Tax Liens against
owner; would prevent him giving clear title.

3. Taxes — no provision has been made Federal In-
come Tax in your outline. As either a partnership or indi-
vidual no income may be deducted as an expense before taxes.
Under Plan 1 and 2 net taxable income would therefore be in
excess of $9000. and under Plan 3 would be in excess of
$14,600 (but would be divided and reported by partners indi-
vidually as income). Under Plan 1 & 2 (even allowing re-
modeling cost as a total expense item) the net anticipated
income would be more than $13,000.00 and under Plan 3 would
be more than $17,500.00 before drawing of wages by owner or
partners.

111

Page 3
3-8-57

4. Computation of Return on Investment - I question
the computation of the return you state for your investment
under all plans. For example under "Debt Service, Plan 1 or
2" you include loan repayments as a deduction from Operating
Income to arrive at net income & yield. My computation of
net income after drawings (for purposes of computing yield
or return on investment would be a net income of at least
$5,454.00 or more than 33% return on 315,000.00 investment
for Plan 1 a 2 a at least 35,659 or 28% return on 520,000.00
under Plan 3. If your remodeling costs were not total ex-
pense put partly capitalized this net income would be even
mreater.

Yours very truly,

H. Andrews Hays,
Vice President

112

BANK OF LANéIHG
LANSING, HICEIGAN

July 26, 1956

Georgios P. Kostarides
608 W. IOnia Street
Lansing, hichigan

Dear Kr. Kostarides:

We have read with interest your submission for application

for a loan to finance a restaurant business and consider it
very complete with all necessary information for consideration
of your loan.

As The Bank of Lansing has never financed this type of busi-
ness, any further comments by myself are Just observations
which could be made on your set up.

In the first place, this loan is for capital purposes and
capital loans are not considered the function of the com-
mercial bank. The term of ten years would be too long for

us to consider. The projected statement and method of finan-
cing cover this period and are more or less based on a 10%
increase in annual sales over this period. It might or might
not happen.

In connection with the present statement of Mr. Stephen C.
Andreadis, we would eliminate the real estate which is Joint
and not separate and under hichigan Law available for the
business. Also the furniture and fixtures are unsatisfactory
items for bank financing as well as the household furniture.
This would eliminate from a net worth of $45,133.00, $32,450.00
leaving the total net worth of $12,683.00 which would not
warrant a loan of $30,000.00 to be repaid under a ten year
period as outlined in the proposed payment plan for financing
the purchase of this business.

We have reviewed the budget as set up and the debt service
plan and find no criticism expeét as stated above.

Very truly yours,

Walter S. Heck,
Assistant Vice-President

WSR/klh

11?

AfiERICAK FLETCHER NATIONAL BANK
AND TRUST COMPAEY
INDIANAPOLIS

August 28, 1955

Kr. Georgios P. Kostarides
608 W. Ionia Street
Lansing, Michigan

Dear Kr. Kostarides:

Thank you for the privilege of examining *4 e material that you
have presented us in support of your application for a ten
year term loan to finance the purchase of a restaurant busi-
ness located in Lansing.

We regret that we are obliged to decline your application.

Our principal reason for this action is that basically we

do not consider it sound for this institution to invest in
business loans for the term which you propose. We feel that
such a span of years involves too many uncertainties with
respect to the continuing capacity of your management, the
stability of the neighborhood in which you might be located,
as well as business generally in this community and otherwise.

That our position is not an uncommon one is made clear in

the results of a recent study of the statements of condition
of some average restaurant businesses, wherein it is disclosed
that of their total liabilities, only 2. 37% were in the form
of long term debt to banks, whereas under your proposed loan
the long term debt to this bank would be ranging from 75% of
total liabilities downward as liquidation progresses.

Our unwillingness to invest our depoistors' funds in this
long term program may also be viewed in the light of the
applicants' proposal to commit themselves and the owner of
the real estate only to a lease of ten years--equal to the
life of the loan. The approaching terminus of this lease
would, in itself, hazard the loan in its latter stages.

We have examined carefully the operating statistics, balance
sheet figures, the cash flow budget and projected earnings
statement. We would have preferred to have at least three
years operating figures, but from the one years operating
statement presented us, we gave an appreciation for the
applicants' desire to make this investment. The business
aDpears to have good prospects, especially when managed

by men of the experience and education of the applicants.

We believe, however, that they must have either more of
their own resources or funds borrowed from private sources

114
continued - page two

for investment in the business. The margin of cash available
under the budget as set forth becomes perilously narrow in
future months, so that there is likelihood that the business
will then have to turn to the bank for short term credit.

The above considerations obtain with equal weight in event
this loan is considered on a partnership basis, though the
partners in combination can give the business a somewhat
improved cash cushion. One non-technical observation which
we might make is that the business would appear to afford

the partners a not wholly adequate income for themselves and
their families, and that the project is a more attractive one,
income-wise, if entered into by either of the individuals
singly.

We were led to question somewhat the adequacy of the deprecia-
tion schedule in light of the initial investment in fixed
assets and the annual renovation program.

0
We hope you are successful in procuring the necessary capital
for this enterprise from some other source.

Cordially yours,

Carter B. Tharp
Ass't Cashier

115

FIDELITY BARK & TRUST COFPANY
IHDIANAPOLIS, NDIANA

November 27, 1956

Kr. Georgios P. Kostarides
608 West Ionia Street
Lansing 15, Michigan

Dear Kr. Kostarides:

I am returning herewith your proposed Thesis application
for the financing of a restaurant business. The following
personal opinion is made after an analysis of your applica-
tion and supporting papers.

Your proposed plan of financing the restaurant business
whether its your plan #1, 2 or 3 involves a capital loan.
Such a loan should always be secured by marketable assets if
the loan is to be handled by a banking institution. It is
my opinion that the financing of this restaurant business
presents an element of risk if secured only by the guarantys
of the principals involved plus the pledging of the fixed
assets concerned. In the event there is a default on the
loan it is entirely possible that the amount due on the loan
could not be realized from the sale of the fixed assets. In
plan 1 or 2 the fixed assets could not be offered as security
because the owner would most likely take a chattel mortgage
on the furniture and fixtures and equipment to secure the
unpaid portion of the sale price.

The long term aspect of the loan is another unfavorable
condition. Banking institutions hesitate to enter into term
loans particularly in this period of "tight money" conditions.
The only long term loans that local banks are making, that I
am familiar with, are mortgage loans and they are usually
granted only to established customers.

The personal statement submitted to support the proposed
credit do not present sufficient net worth in my opinion to
expect such a term loan.

I would like to mention that your file is most complete.
I can not think of any additional supporting papers that would
be needed. If I can be of any additional help please feel
free to contact me.

Yours very truly,

Harry L. Bindner
Vice President

115

IuATIOEIAL BANK OF DETROIT
DETROIT 32, I'ICTEI'EAI-J

fiovember 9, 1956

Kiss Demetra iehas
19462 Glenmore
Detroit 19, hichican

Dear Kiss Yehas:

In accordance with our conversation, I
am pleased to enclose the questionnaire you left with me,
as well as the summary I have prepared.

I sincerely hope that the information will
prove helpful to your colleague. In the event that he has any
additional questions or comments, please feel free to have him

Very truly yours,

John 3. Wells, Jr.

JSWJr:dno
Enclosures

117

RESTAURAET LELDING

 

Business loans generally fall into two broad classifi-
cations:

1. Current loans -
Loans of short maturity, generally used for
working capital and repaid from liquidation
of current assets.

 

2. Term loans -
Loans of generally one to five years maturity,i
normally payable in monthly or quarterly in-
stallments. Loan proceeds are most often
invested in assets of a fixed nature and
repayment is anticipated from future earn-
ings of the business.

Current loans are not generally required in the restaurant
business because of its nature. This type of loan is con-
fined mostly to businesses which are of a seasonal (toy re-
tailing) or cyclical (tool & die manufacturing) nature. The
exception may occur when a large restaurant or chain has an
Opportunity to make a sizeable purchase of an inventory item
at an advantageous price. The proceeds of a current loan
would be invested in this inventory and the loan paid as the
inventory is liquidated freeing up cash.

A lending Officer considering a loan of the above
nature places emphasis on the character of the applicant and
its financial condition particularly as reflected by its
balance sheet condition (i.e. proper relationship of capital
to total debt and adequate working capital). He must assure
himself of the applicant's ability to liquidate the inventory
within a reasonably brief period and without incurring losses
by forced sale. ,

By far the majority of restaurant loan applications
involve term loans. These generally fit into three classifi-
cations based on the purpose of the loan:

1. Funds needed to establish a new restaurant.

2. Funds needed to acquire an existing restaurant.

3.. Funds needed to improve existing facilities.
Borrowing in the first instance through banking sources is
generally impossible unless the applicant can support the
loan with readily marketable collateral such as stocks, bonds

or life insurance cash values. In this instance the bank
performs the function of converting the borrower’s previously.

113

acquired savings (which he has invested in the above assets)
into cash. As such the emphasis is placed on the character
of the borrower and the quality of the collateral offered.

An exception to the above may be made when an extremely well
experienced restaurant operator has virtually all required
capital and requires a nominal loan. Also in some instances,
a loan may be obtained predicated entirely on the cosignature
or guarantee of an individual of means. however, banks will
frequently require the guarantor to pledge marketable collateral
to support his guarantee. Further an exception may be made
when the applicant can supply some of the required capital
and is eligible for a G.I. loan.

The above comments are also apropos in the second in—
stance when funds are needed to acquire an existing restau-
rant. However, a well experienced operator seeking to ac-
quire a restaurant which has an established record of pro-
fitable operations would be more likely to receive favor-
able consideration.

Loans to improve existing facilities are more readily
obtainable through commercial banks. These right be un-
secured or secured by a chattel mortgage on equipment or a
real estate mortgage. At this point it may be well to point
out that restaurant equipment is generally regarded as in-
ferior collateral. This is based on the fact that one used
its value is difficult to appraise, and because of its single
Purposeness, its' market-ability is very limited. In some
instances this detrimental factor can be overcome if the
seller of the equipment is a well-established responsible
company and is willing to give full recourse to the lender.

A lending officer considering a capital loan again
looks at the character and financial condition of the lender.
However, because he expects the loan to be repaid from future
earnings of the business, he must place greater emphasis on
the past earnings record of the restaurant and his appraisal
of its future prospects. The latter, of course, includes
such factors as the ability of the management, the continuity
of capable management, location remaining favorable and others
too numerous to mention.

With the above discussion as background, I will comment
briefly on each of the factors mentioned without attempting
to rank them as to importance. '

1. Character of applicant - a known dishonest
person would not likely be able to borrow
from a bank against the best security, while
a person of fine reputation would receive
every possible consideration. This is a
very important factor in lending.

8.

10.

119

General business experience of applicant -
important only insofar as it implies that

the borrower has some knowledge of all phases
of his business or can acquire a management
staff to cover phases wherein he may be weak.

Applicant's experience in restaurant field -
this is very essential.

Applicant’s trainins in the restaurant field -
training is important but should be seasoned
with practical experience.

0

Applicant's previous record in repaying
loans - this is probably a much more im-
portant factor on the negative side then on
the positive.

Net worth of applicant - this is a very
important factor but only as related to
the balance sheet as a whole and to the
nature of the assets and liabilities of
which it consists.

Real estate which can be used as security -
a real estate mortgage loan to a business

is in effect a term loan and considered not
on brick and mortar value but the borrower's
ability to repay. However, national banks
are legally limited to lending a maximum of
66-2/3 of an independent appraised value

of the real estate mortgaged.

Stocks and bonds which can be used as
security — loans on marketable collateral
such as stocks and bonds are in a class

by themselves whereby the quality of the
security is of prime importance. Banks

by policy generally limit their loans even
secured by U. 8. government bonds to less
than 100% of current market value and in
the case of common stocks may be willing
to lend 50% to 60% or less.

Location of proposed establishment - im-
portant only as one facet of the business's
future prospects.

Potential to be derived from the operation
of the business - very important because

as indicated, earnings are the anticipated
source of repayment of most restaurant loans.

120

ll. Assets and liabilities - these balance
sheet items are very important as they are
a measure of the financial health of a
business. Over investment in fixed assets
as related to capital or an unbalanced debt
to capital ratio can be sufficient reason
along for declining a loan application.

12. Future business prospects - banks are very
desireous of assisting companies which are
growing soundly. Prospects in considering
term loans are, of course, of vital impor-
tance.

13. Importance of a co-signor to the loan appli-
cation - a loan may be predicated entirely
on the co-signature but the individual's
whose signature would be adequate are rare.

l4. Leasehold provisions and limitations - this
could be considered another facet of apprais-
ing future prospects.

15. Applicant's marital status - this is of no
importance except in the rare instance where
it may reflect on the applicant's character.

In summary, almost any one of the above factors, if
strongly negative, could result in a loan being declined.
Consequently that one factor would assume primary importance.
However, no one alone being strongly affirmative would assure
approval of a loan. Perhaps the best analysis, is the text-
book version of credit worthiness, i.e. a potential borrower
must have good character, capacity (business ability & judg-
ment) and capital (sound financial conditions). Each of
the factors specified in the questionnaire relates to one of
the three "C's" of credit and each of the latter are of

equal importance.

The Author's Note:

Through the effort of Kiss Demetra hehas, the preceed-
ing summary on Restaurant Lending was obtained from Mr.
John 8. Wells Jr., assistant cashier with the National Bank

of Detroit.

608 West Ionia Street
Lansing, hichigan
October 23, 1956

Edward P. Lee
horwath & Horwath
100 West Monroe St.
Chicago, Illinois

Dear Sir:

Mr. R. T. Bystrom, Tanager of the Brody Group of
Dormitories at hichigan State University and a personal
friend of yours, suggested that I solicit your help.

The enclosed questionnaire is for your consideration.
All possible information, whether experienced with the restau-
rant industry or otherwise, will be appreciated. I do know
that any information you may give will bear a great weight
on the future outcome of my thesis.

, If you feel that I could obtain more information
through the First Eational Bank of Chicago, will you be
kind to refer to to a Loan Officer in charge of restaurants.

I am grateful for your time and effort.

Sincerely yours,

Georvios P. Kostarides

1??

EORNATH a KORWATH
Accountants and Consultants
100 West lonroe Street
Chicago 3, Illinois

October 29, 1956

Fr. Georgios P. Yostarides
606 West Ionia Street
Lansing, Nichigan

Dear Lr. Kostarides:

I am giving a copy of your letter to me and the date per-
taining to the facts that you are requiring for your thesis
to Mr. Frederic Lee, an officer of the First Kational Bank,
and am suggesting to him that he turn your letter over to
the proper authority, as I am confident that the First
National Bank wants to incur its research such as you are
attempting.

If there is any other way I can help you please advise,
and the next time you see Bob Bystrom tell aim I said
"hello".

Cordially yours,

Edward F. Lee, Partner

EPL:pJ

608 West Ionia Street

Lansing 15, sichigan
December 1, 1956

Fr. hark h. Baxter

Assistant Cashier

The First National Bank of Chicavo
Chicago 90, Illinois

Dear fir. Baxter:

Today I received your letter dated November 2 and postmarked
November 5. It is unfortunate that this delay occurred.

The enclosed Loan application and supporting papers were
presented to the local bank so that the scope of my "Thesis"
may be enlarged. I do realize that the local situation may
not be familiar to'you, but I will be obligated if your bank
acted on this application as if a real situation. All facts
and figures are true, except the name of the proposed estab-
lishment which is withheld upon the owner's request.

Please be as critical as you want, give all the sound or
unsound merits and comment on the methods and procedures
used in the application. The more possible solutions you
can offer, greater the assistance toward my final conclusion.

If the Opportunity is available to pay you a personal visit,

I will do so; otherwise, I am hOping that this extra material
Will prompt your kindness to give me further information.

Waiting for an early reply,

Sincerely yours,

Georgios P. Kostarides

K/n

enc .

608 West Ionia Street
Lansing 15, Michigan
December I, 1956

hr. Edward P. Lee, Partner
horwath & Horwath

100 West Konroe Street
Chicano 3, Illinois

.

Dear Yr. Lee:

I am in contact with the First National Bank of Chicago,
thanks to you.

I have seen and spoken to Yr.Bystrom about you and he also
said "When will you be over and see us."

Thank you again.

Sincerely yours,

Georgios P. Kostarides

K/n

THE FIRST NATI NAL BARK
OF CHICAGO

November 2, 1956

Fr. Georgios P. Kostarides
608 West Ionia Street
Lansing, Hichigan

Dear Pr. Kostarides:

Hr. Edward Lee of Horwath a horwath has sent us your
letter of October 23 and the questionnaire regarding loans
to restaurants.

Our division is the commercial loaning division of
the bank which serves customers in the hotel and restaurant
businesses. We have discussed your letter at some length
and have concluded that it would be almost impossible to
complete your questionnaire without an opportunity to talk
with you about it.

Although the items you list are certainly significant
considerations in granting credit, their relative importance
varies considerably with each individual loan situation. A
number of factors must be considered in judging any credit,
and these are briefly described in a book by Roy A Foulke
and E. V. Prochnow entitled "Practical Bank Credit".

Restaurants generally do not have a need for short
term bank credit because the business does not have a seasonal
character. Occasionally, however, loans are made to finance
new equipment or additional facilities on a two or three
year term loan basis, or on a real estate or chattel mortgage.
Because of the widely different situations we have encourtered
in the restaurant business, we are inclined to look at each
proposition by itself and to work out credit arrangements
tailored to the individual situation.

I realize that we have not given you any very useful
information, but we would be very happy to discuss the matter
further with you if you could arrange a trip to Chicago. We
feel that through a firsthand discussion we might be able
to answer any specific questions you may have and that you
mipht gain some feeling about our attitude toward this type
of financing.

Sincerely yours,

Fark h. Baxter
Assistant Cashier

NHB:mw

TEE FIRST NATIONAL BANK
OF CHICASO

December 4, 1956

Nr. Georgios P. Kostarides
608 West Ionia Street
Lansing 15, Michigan

Dear Kr. Kostarides:

I have just had an opportunity to read your letter of
December 1 and of looking over the accompanying information.
You certainly have done a complete job in presenting your
credit problem and you provide a good deal of the information
which would be required in considering a real loan.

You present an interesting problem but because this
is not a real situation, we feel that we should not make any
judgments as to the'merits of the credit. Just as a court
refuses to hear a moot case to avoid establishing precedents
or making law when there is no real issue involved, we feel
that any opinions we might have would be purely academic,
probably in error because of a lack of understanding of the
situation, and our opinions might be misinterpreted by un-
warranted application to other situations.

Perhaps we should again point out that we cannot
establish rules which are applicable to every credit problem.
Each loan must be considered by itself and the circumstances
are generally so varied that it is difficult to apply the
same criteria in making one loan to another.

We do have one comment, however, which seems appro-
priate to your problem. In general, it is not the policy
of commercial banks to make loans providing long term equity
capital for new businesses. Loans are made principally to
meet the short term requirements of businesses and term
loans of from three to five years are made only to companies
with adequate equity capital.

Je are returning the information which you sent us
and wish you every success in your project.

Very truly yours,

hark H. Baxter
Assistant Cashier

I318. :adw
Encl.

127

BASIC CREDIT FACTORS

The extension of credit is based on the creditor's
belief in the debtor's willingness and ability to discharge
his obligation in accordance with the terms of his agreement.
Honesty of itself will not necessarily insure repayment of
an obligation, but the honest intention of the debtor to pay
is of primary importance. Unless the creditor can satisfy
himself that the prospective debtor is desirous of discharg-
ing his obligation, it is inadvisable to investigate further.
Assuming that the prospective debtor is desirous of paying
his obligation, the analyst should next try to ascertain
whether he will be able to repay the debt at its maturity.

THE C'S OF CREDIT

The classic approach to the determination of the
willingness and the ability of a debtor to pay is the con-
sideration of the three C‘s of credit. The willingness to
pay may be placed under the heading of character, the ability
to pay may be listed under the headings of capacity and capital.
The character element is a primary factor in the extension of
credit. But the desire to discharge one's debts is not of
itself sufficient; the necessary ability to carry out this
desire also is essential. Furthermore, reasonable capital
must be available. Hence all three C's are fundamental
credit factors: character, the moral risk; capacity, the
methods risk; and capital, the property risk.

 

Two other C's are significant factors in credit ex-
tension. Conditions refer to the conditions within the parti-
cular industry in which a company is operating and also to
general business conditions. The last C is collateral, which
may be supplied to offset, wholly or in part, some weakness
in the capacity or the capital factor or to care for some
unusual condition within the industry. Collateral, however,
never can be a substitute for integrity.

 

While the alliterative appeal of the C's of credit
cannot be overlooked, probably a better classification of
basic credit factors is the following; (1) he personal
gactor, (2) the financial factor, and (3) the economic

actor.

ARALYZIN} FINANCIAL STATEMEETS -
American Institution of Banking
V

ADDITIONAL REMARKS Oh TEE QUESTIOKEAIRE WHICH WAS
SEET TO DETROIT SECURITY BANK
1. Character of Applicant: If the applicant has no
character, then the bank will not consider lending.
2. heans of Repayment.
3. Relationship of Net Worth to Outstanding Debt.

4. Nature of Borrowing - Purpose.

U7

. Lever look to security for repayment of a
commercial loan.
6. The aspect of the loan is important:
Is it a new business?
Is it an established enterprise?
Is the loan for expansion?

Is it to secure more modern quarters or
equipment?

The premise establishes the relative importance of the factors.
7. Loan Officer's Check List

BALANCE ELF-.132
1. Debt to worth ratio.

2. Condition of accounts receivable.

3. Inventory analysis (Turnover).

4. Working capital.

5. Is accounts payable current.

6. Are the other accurals current (social security,etc.)

K]

. Why is the money wanted.

CD

. What will sales, inventory, and accounts receiv-

able be?

1am

Loan Officer's Check List (continued)

PROFIT AITD LOSS STATEl-imTTS

I.

OPERATING TREND

Trend of Sales

Trend of cost (Z)

Trend of profits (related to sales)
OTHER FACTORS .

history of company

Hanagement (ability and background)
Product

Kethods of production
LISCELLAREOUS

Accounting techniques

Insurance coverage

Are taxes paid to date

Compensating balances

3...:
‘ JJ
(‘3

FIHANCING RESTAURANT NEEDS

The following is a speech given by hr. H. Andrews
Hays, vice president of the American State Bank, Lansing,
Eichigan. hr. Hays presented his talk to the Restaurant
Association Conference held at Kellogg Center on February

6’ 1957.

A. IXPORTAICE AKD SCOPE OF RESTAURAET BUSINESS

Ky conception of the restaurant industry has, hereto-
fore, been linited to a speaking acquaintance with a dozen
or so restaurant operators, a financial acquaintance with a
half dozen Operators, and to taking my family out to dinner
occasionally.

The sheer magnitude of your importance was brought
to my attention when I examined the reports of the hichigan
Department of Revenue and found that in hichigan alone you
cross sales of 406 million dollars in fiscal year 1955-1956
and that these sales will probably exceed 440 million dollars
in the current fiscal year.

Further research revealed that annual expenditures
in the United States fdr meals outside the home exceed 17
billion dollars and part of this expenditure is apportioned
among 195,000 different restaurants. You rank fourth in
size among all industries.

Please excuse this repetition of facts that you al-
ready know, but you are big business and an important segment

of our econom*.

fl"\

3. UNUSUAL CEARACTLRISTICS OF RESTAURAHT BUSINESS

An examination of the financial statements of most
restaurants will reveal that they have certain characteristics
and factors that are unusual in comparison with most other
businesses and industries. A recent compilation by the
Robert Lorris Associates, a national association of bank
loan officers and credit men, shows these unusual character-
istics. This study included 9974 financial statements cover-
ing 143 different types of manufacturing, wholesale and re-
tail tr'des.

In the section of this study devoted to restaurants,
there were a total of 29 financial statements furnished.
Twenty— ne of these were of restaurants with total assets
under $250,000.00 and eihht statements covered restaurants
with total assets over $250,000.00. These statements were
averaged so that they show one total; since any average is
drawn from a group of figures that deviate from it, any
particular restaurant may not conform to the averages of this
study.

The first of these unusual characteristics is that
restaurants operate on virtually a cash basis. Assuming
that Cash, Receivables, and Inventory are the three main
items hat make up current assets, let us examine these
three catafiories in relation to other business.

4
. u

(a) Cash - amounted to 12.3. of total assets for

the 21 restaurant :roup and 20.63 for the total 29 restaurants

132

reported. This percent really is not out of line with other
businesses but does show that within the restaurant industry
itself that the eight larger restaurants had retained earn-
in?s to a great extent and materially increased the average
for the whole sroup. .

(b) Receivables - in the restaurant business are

 

very low and cosprised an averase of 2.4% of total assets.
This is very low and really is to your advantage. Businesses
that have high receivables often have 25.303 of their assets
tied up for 30-45 days, or lonser, prior to getting their
money from sales; this constitutes great hardship and has
resulted in the relatively new development of Accounts Re-
ceivable financins. Fortunately, you do not have Luch money
tied up in receivables so you are not faced with this pro-
blem. Exceptions would be private clubs and are not con-
sidered as applicable to this aroup.

About the only field that has a smaller percentage
of receivables than restaurants is the retail wine, liquor
and beer business.

(c) Inventory - is generally very low in your busi~

 

ness due to your ability to turn it over rapidly. The average
inventory of the 21 smaller restaurantS'ocyered in this

study acounted to 8.61 of assets and this inventory was
turned every 16 days. A rough average of other business
inventories was about 303. Here again, you are fortunate
that you do not have to tie up large sums of cash in in-

ventory. Some businesses are able to finance inventories

1 7. '2,
- .|
.a' J,

pendinr sale of their products by means of Floor Planning
or Warehousinr.

(d) Total Current Assets - is merely the sum total

 

,4

of cash, receivables and inventories and amounted to 23.6n.
In statement analysis, however, it is venerally a rule of
tnurb that the hisher the percents e of current assets the
better is the position of the business.

(9) Fixed Assets - comprise the highest percentaae

 

of your total assets and in this study amounted to 6)} of

the assets of the 21 restaurant group. Incidentally, out

of all 143 businesses included in this study, restaurants

had the highest percent of Fixed Assets and herein lies the
crux of your entire financing problem. Equipsent and furnish-
ints in a restaurant are expensive; unfortunately, he real
value of this equipment is in direct prOportion to the
ability of the restaurant to make money. A Chattel hortgaqe
on the equipment of a run down restaurant that is Just break-
inr even or losinr money offers a lender little peace of

mind about his loan.

C. Vii-{Y DOES A "GO 233-" RESTAL‘RAIiT ’rI-EED FIi‘iAL-‘ICII‘IG

We have shown the importance of restaurants in our
econony and have pointed out some of the unusual character-
istics that your financial statement might show when com-
nared to other businesses. Let us try to enumerate what

you nirht need financing help for.

134

1. Add additional equipment to reduce Operating
costs or improve efficiency.
. Replace worn out or obsolete equipment.
3. Remodel kitchen facilities to increase efficiency.
A. Remodel to increase seating capacity and o'stomer
satisfaction.
5. Provide off street parking.

There are probably other purposes for which you might
need help but the problem that stands out is that your needs
are not short term in the sense of a 30, 60 or 90 day loan.
As pointed out previously, your needs for inventory and
carrying receivables are neglisible.

When you do need financial help, it is generally going
to be needed for a long period of time and will have to be
repaid out of earnings, therefore, you must evolve a plan

to show to your prospective lender.
D. INOLVIIB‘} A FLA-S

Your decision to add or replace a piece of equipment,
to enlarge or renodel must be based on sound business Judg-
ment and not just on emotional wh m. A faulty merchandising
Policy is not necessarily going to be corrected by the addi-
tion of more equipment. The first person you should convince
is yourself and in doing so you will want to consider:

(a) Will I save money - how much?

(b) Will I earn more money - how much?

(e) Will I merely maintain my sane volume and profits

[__J
K )1
if!

and if so, can I repay this debt out of this save volume
and profit without impairing my workin: capital? I

In your consideration you must allow for seasonal
and industrial fluctuations and all other factors you think
misht effect your ability to service this loan.

0

Assuming that you convince yourself that your project
is necessary and that you are capable of properly servicing
a loan you now may have to sell someone else of need in
order to secure a loan. You have several sources to approach
for tlis loan and banks, I have found out, are net the most
conron source, but being a banker, the first one I will men-
tion is a bank. (Lost of the points that apply to banks

130 apply to small business administration loans).

f.)

 

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Just how do you so about approachins this character
who is alwa s portrayed as having ice water in his veins and

a filass eye that evinces more humor and sympathy that his

First of all, fio to the bank where you have your
business aecount--that at least is sufficient reason for
him to rive you consideration, and in today's tight money
market, many banks are making loans only to present customers.
Approach your banker with your problem and needs well
thought out and planned. One shortcoming of many potential
borrowers is a sort of vagueness as to the reason for seek-

ins credit and a lack of a program for repaynent. Vagueness

creates a poor impression as to your managerial ability and
ixrcdiately causes a shadow of doubt as to the wisdom of
your urofram.

If you haven't furnished financial and operating state-
rents at least yearly since you have been in business, take
alonr your statements for the past three or four years. In-
cidentally, I feel it to be good business practice to render
periodic financial and operating statements regardless of
vhethcr you contemplate the need for credit or not.

From your financial and operating statements, your
baiher will be able to see how your business has progressed
and how your earninrs have been. He will be particularly
interested in earnings and the stability of your business.
Keturclly, if your earnings do not show the ability to
Dronerly repay a loan, you will have a hard time convincing
his that these earnings will majically irprove as a result
of obtaining it.

Another thing your operating and financial statement
will show is your ability and willingness to retain part
of earnings to build up net worth. A business that is
be nc nilked of all profits, either isn't earning enough,
or the owner or stockholders are not prOperly providing for
luture expansion and replacement needs. This is an indi-
cation of poor judgment and management.

Go over your ideas concerning your needs and out-

line what you think it will do for your business and how

FJ
_ >1
.4

you will be able to pay it back. It will be best if you
have some of your own money to put into this plan--if it is
equipaent you need, you should be prepared to pay a quarter
to a half down and finance the balance. If it is modernizao
tion you should have some money to pay for part of it. This
will demons rate to your banker that you have faith in your
own ideas and don't want to shift all the risk to someone
else.

If your relationship to your banker hasn't been close,
he will have to do some investigation himself and here is a
word of advice--§ive his time to study your proposal. Too

many borrowers have an irritating habit of coming in to

borrow noney they have already spent the day before.

F. YOVR BAIKER'S APPROACH TO YOUR REQUEST.

Your banker is going to judge your request from the
standpoint of the three C's of credit-~Character, Capacity,
and Collateral.

Character to the banker means the reputation of the

 

firs or individual for meeting his obligations. It is the
history the borrower has established for himself in meeting
his promises and in the way he conducts his business. Is
1e above-board in all dealings or does he indulge in sharp
and shady practice? Does his place of business look clean
and orderly or is it dirty and poorly maintained? No matter
how small the loan requested is or how well secured a loan

right be, character is distinctly important.

 

17C:

The second fundamental by which your loan request is
roinf to be jud~cd is known as Capacity, and here is con-
sidered the ability of the borrower to repay a loan in
accordance with his promise. No matter how honest the indi-
vidual, or how rotthy he is, if his financial ability and
earnings are not creat enough to repay a loan, he does not
have the capacity to do so.

Under this characteristic I would include management
ability, which, in your business, involves the economical
purchasinr of unprepared food, having it properly prepared,
having it served in temptrng and proper portions at a price
that will yield a profit. Poor service, poor preparation,
faulty purchasin; and improper pretion control reduce gagg—
city. Inasxuch as 58% of all business failures are related
and attributable directly to poor ma.agencnt in the form of
(l) inexnerience in line (2) lack of managerial eXperience
(3) unbalanced esperience or (4) incompetence, capacity
therefore is an extremely important consideration.

The third principle your banker will apply to your

request is known as Collateral and may either be something

 

of tangible value to pledge, to secure a loan or simply the
equity shown in your financial statement. Equity or net
worth is the difference between what you own and what you
owe. If this equity is sufficiently large, the loan may
be mtde on an unsecured basis.

After applying these three principles to your request

for credit, your banker is going to consider several other

 

things in relation to the restaurant business.

One of these considerations is the great number of
restaurants and the large number of failures. I asked one
older banker if he could give me a few tips on this speech
in refard to financina restaurant needs; his answer was
"Don't rake the speech."

What I presume he actually meant was, that it is a
field that by reputation has a large number of failures and
therefore loans are high in risk.

It has been estimated that the average life of a
restaurant is seven years and that failures run as high as
15-501.

Another source states that each year some 37,000 food
service establishments open for business and each year
94,000 close their doors for the last time.

Another consideration is that, historically, banks
supply short term seasonal credit to commerce and industry.
a bane receives funds from depositors for credit to check-
in: accounts that are payable on demand and funds for credit
to 8aV1nTS accounts that are payable by practice on demand
or very short notice. Therefore, a bank can hardly make a
larce portion of its loans for long periods of time. A
bank nust naintain a reasonable liquidity so that it may
always meet the denands of its depositors to who: it has
a pritary obligation.

When the proceeds of a loan are to be invested in

Fixed Assets, he loan is said to be a Capital Loan, i.e.,

140

the loan can be repaid only over a period of time and out
of earninfs. The number of these loans, in a bank loan
portfolio, has historically been small in number and dollar
amount although in larger cities there has been a trend
towa d making more of these loans on a term basis. Because
these Capital loans run for a longer period of time the risk
is ereater and if banks are to make them, they should build
up a larne loan loss reserve to safeguard their depositors.
Unfortunately banks are presently handicapped by laws that
restrict the practicality of setting aside funds for such
loan loss reserve except in small asount. Until such time
as a more realistic approach is made to allow adequate loan

loss reserves, tanks must restrict their lending for capital

Uniortunate.y, post of your needs fall into the
catajory of Capital Loais because the funds you need are for
Fixed Assets. If your request is reasonable, however, and
can be paid out of earnings over a year to two years, your

lanken gay irant it on a monthly payment basis. Loans of

this nature will norrally bear a 53 discount interest rate.

I
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1. Restaurant lquiphent Suppliers - apparently do
; lar e volume of the financinj of equipment on a direct
be is with tLe operator, after the Operator advances wlat

the supplier considers to be an adequate down payxent.

H
,L.

Twe supplier nay carcy the loan himself, if financially able
or he may discount it to a bank or finance company and "back"
the loan. sank rates will run 6: and finance corpanies say
run more (about double).

If the loan 'oes sour the Equipxent Supplier being an
exnert in the fiele, fenerally ca~ sell tne equipment an‘ pay

off the loan.

One disadvantare of this type loan is that you may

not be able to s op' for the sake of equipment you want.
Another disadvantage airht be that the operator allows
himself to be ”sold” instead of developiny his own plan an
determinin: his real leeds in advance.
a. Purveyor Financing - seems to be quite a general
practice in the trade. It is, I understand, alrost possible
for an Operator to yet corpletely set up in business through
purveyor financinr with very little inVestnent of his own.
This practice tends to open the field up to eneXperienced,
undercapitalized operators WQO often fail; tuis tends to give
a black eye to the trade as a whole.
It does limit the Operator to purchasing from the
nurvey rs who finance his; he gust buy their product and is
in no position to shop around for more economical sources.
One local ice creaa coxpany uses the $1.00 per gallon

annual sales as a rule of thumb to limit the size of the

loan. Thus, C?,500.00 would be a good sized loan in this

y. Landlords - if a buildin? is leased - are often

a wood source for assistance. lnasmuc; as leasehold ixprove-
rents should be considered carefully and in relation to
lenrtn of lease to allow write-off it may be necessary to
nerotiatg for lease adjustnent. Often a landlord will assist

if he is rroocrly aahr036hed-

.-

.5

A. Small Easiness Administration - out of 1290 loans
made free January 1 to June ?C, l956 from the publ shed list
I could deter ine that at least ten had been made to restau-
rants. Five of these loans were made directly to the opera-
tors and five of then had b—nk participation. These loans

anred in amounts fro: 44,000 to £90,000.

Loans nade by this acency to small manufacturers,

wholesalers, retailers, and service establishments are made
for 5x17axinin.<sf terxjwaars to:
1. finance business construction, conversion or

expansion

0)

. finan e the purchase of equipnent, facilities,

sunpli

3

{D
i-J

s o natcri

O
'1

e. to supply workin: capital.
See Pafe 148 of this appendix - Practical Credit
Requirefents.
See page 1430f tLis appendix - Inelirible Appli-
cations.

Sorrower must first seek credit from bank; if bank

is unable to rake loan, borrower may apply direct to 3.3.A.

In conclusion, it would soon to re tlat your need for
financin: should be a result of careful thourht and long
ranje planning concern n? soeethinr that will improve your
business. ibis project will probably 1 ave sosetlinr to do
mi 3 your Fixed Assets and will have to be repaid out of
earnin s. It should be supported by firures that will prove
to yourself and the 10308? tlat you have the capacity to
repay the loan. some funds for this project should be
furnished by vou Ollt of previously retained earninx3.

You Lay have to use some sources other than banks,
until such time as you have an establis :;ed record, and can
borrow on the “tr nets of your financial statement supported
by your proven ability as a sound businessman and manager.
inese other sources seen to be a n rally available; by all

W'. \ ‘~ ' p ~ w (W
Means use t:.e... ii you £01

('3

it prudent and to your advantage.
01? lsoln-unnf LOASIL} EXPERILHCE

1. Direct reouests have been infrequent, however.

(a) Can remember one loan of several thousand dollars
for expansion that was short term due to the
terrific seas«nal trade.

(b) A loa sade to purveyor on the strenztn of a
restaurant operator's endorsement.

(c) {ave several operators would five unsecured

credit if they requested it.

(d) fave made several real estate nortqages on

restaurant buildings owned by operators; all

but one handled satisfactorily.
2. Indirect loans throufin equipment dealer; installment con-
tracts turned in to us on full recourse basis. We know and
rely 0: dealer and he has ability and know-how to sell equip-
sent if loan goes in default. This dealer has volure approach-
in" one million dollars and 853 sales are for case. he tries
to carry tne 15f hinself for the incone it nroduces but often
is forced to turn them in to us; Le required 1/3 to 40% down
naynent and finances balance for 12 to 24 months.
?. flanker friend - non-customer (COCO) turn down - (non-
custouer).
4. Payroll loans -

0
3 Insurance agent - bur“lary, fire, comprehensive :eneral

.r’.

. 1
liability, business interruptions, worker compensation, tneft.

*4
J}

\ fl

- F".~-~1-"‘“ prev-r ~-.~-
inn-nu.T .)itfiolrzo

ROBERT LORRIS ASJOCIATL:

3T“

‘.' r) ‘ 7 .t‘ ‘ 1‘ '~ n‘r'
ten, eneeo on or aoout bece oer 31, 1939

,- r« ;“."T‘- ‘2. 7V -‘ y _ ‘ F. - l
Anvil aIAL ghDER CQ§0¢ 6 filTl & ALL
I \r-r - ~- ..., —- - r
ergo: Laos T;AN Less HAN SIZES
A . ‘ ...
r'lo :‘1 32(7)]..7 I

 

1n

jutber of Steterents 21 29

A A '-‘."‘In (W 1’ J y
n e“l; a a a
5., ...4 . -) [-4 f) I"?
f‘ '7 ‘v‘. A -~
VChSA 1L . ’12 20 D?)

F
'3
<
ll
:3
{-1-
O
s
6 4
(_..
a»
O
f‘\
{‘0
KO
O
R)
U:

All Other .20 .90

Total Current 23.55 47._l
Fixed Assets not 65. 5 42.53
All Other 10.9“ 10.27

Total IanharentTfi.44 52.79

 

Total Assets 100.003 100.00»
LIASILITIES t ;

Due to Bank 9.96

Incort Caxes 2.07 8.08
1:11 31).")."8 801\ 6'85

Total Current
Due to kunaslony‘fiar; .84- .
6.53
3.36

Other Lonx Zbr It. I. eb t l 2‘: . :31
Total Debt 45.49
66.64

 

Net Worth 54.51
100.00%

(3
O

C)
C)

Total 10‘

Curren.

'.' ‘ /"‘% ‘
tortufi/ ;' ..Xf.’ 1

J

. {‘I
r—i

[- J

t

i
C 1')

'T‘
‘

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I

VortV/Debt

.2051!"

ended

a?"'\ I‘ l
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O
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itatenents a

.1". ties, /;‘itceivab1€> ( 2 )

Cost Sales/ In-

_-4, . C
‘v' )1. DJ 15:. (1‘)

Sales/Inventory

T ' ‘
\_al esr/suoi't;:

Trofits/Worth

'WC'v‘n fin -~

'1 4H P4 I‘ A

-u “...-utk .s-LA
(IT r. "- j
LJL:\. ...u u..

01";

LLD
525

a

CI {1'}
i

or 8001

145

l
54
—q

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U

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f. —. .
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gidDUUIr‘.4LAJ
“\ ry‘ " " \
LoiL'ulXLu)
Deceber

71
j-L!

RETAIL TRADE

v".

1955

s 3:; .3-
LEss TH

-;,1 0:3":

I"

hi;

179.00
157.00

200.00

5940.00

1305.00

3238.00

707.00
451 0 CC

17.53
300.00

r7“
{ C

11.

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\TTifla FIVE ATC'TT ”£1310 IP‘IIO“ PAlT ICIPATIOL

 

 

 

Cl nv‘7'V111 e , Drive- in K- . i :3 Q: 25/:
Indi and

r‘v— 7 ' 1 " F ‘ 4 '2': " ”P"
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Deerborn, Res a rant F!,;Qt Lirect --
Iic Assn

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Herbs, Cafe 0, LL Direct --
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Ohio

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lirinar ~rjort a-trii -ra 1, tanuary i990, series
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‘-\ _ a m .-‘ .“ ‘ ‘ ...
“stall -re 0 area _ta istics, . 1. III.
0

Y‘._ ‘
:vrio‘icrls

 

 

 

 

 

;i]1 _rthor" J blislin“ Cor oration. 3330c TanaLeCent Survev
of ‘ugin' Torcr, Last Ltroudsberg, Pennsylvania, Fay
70, 1‘56 ~dition.

.tanfiar‘ late ené Data nonvicc, ICC. ConCUCcr Iarket Guide,
avinston, IlJinxir, lfifi c: ition.

Cvnfererces

 

2"‘llfll‘fflljlfi, Stet-inn 0., Bic-s maKrtc 1: Lansing f'icHr-rano

"Division E", The

if]

irst

i-' . . .
z'r‘p'tf‘.“ '111‘:(‘ (V
_/-_..4\ '\.i , 4 K‘ A- . O ,

E‘

Ihther , 'UI“'I., Vice Tresident, Fidelity lank and Trust
Co nany, Inaiana“o]is, Indiana.

Tie“, '. 3., Frecident, Last Lansinf Etatc Jank, La st Lansin3,
icki~an.

art, C. 2., 'icc Fresiccnt, gast Lansin . State Bank, East
Ian" n“, ic”i“€r

To?t”trfiton, C. T., Loan Officer, inrchants fictional Bank,
Ind. iana f‘IO 1 i s , Ina": i an a .

, Vice Pvcsidcnt, Azerican

(3

Tostcr, Joseph E. tate Bank, Lansing,
‘icLi‘an.

.rsnt, '1108, Vice Trcsiaent, fic:i an Iational Bank, Lansin3,
'ichi":r

a,s, An;xe.s 7., Vice Trcsidont, Axerican State Bank, Lansins,
Z.ichi 122

Y'urlcy, Frank and 3611a , Richard, Loan Cificers, Indiana
"tion°l ‘ink ndianepolis, Indiana.

a 3.. Loan Officer, imerican Fletcher Rational
sank and Trust Company, Indianapolis, Indiana.

Tinich, Elva rd P., Ass stant Vice Pres i<ient, {ichifan Rational
wank, Larsino, Lichican.

2., Assistant Jice President, Tank of Lansing,
. ,, fi

log

.k)

Steele, inn, 2., j. is ant Tice President, The Detroit Bank
(my? Trust Co:;M¢q,, Detroit, LiCLija
TLarp, Carter 5., lssistan Cashier, Anerican Fletcher Rational
Tani in; T"ust CO“oaLv Indian*;olis, inuiana.
lls, Jo‘n .., Jr., Assistart Cas‘ier, Rational Bank of
Detroit, Eetroit, Liehi”an

waxtor,

")
. h «23'1".
.'.C LDt‘j-\A~ hull

‘ ‘
Ifi .'
L~r.. .

“ational
Deceiber

liner:r, erry
CO.:~QI‘I:

? 4 T n

l a: bald, ll 0 . o ,
"] V 9 .r‘-
- LC- 1 LL11

A 1.. ' , . !
-kCn, .thg: a.
I
Lan"-n?,
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~~OC\TI‘1+" q:.&:’
m‘ f‘ n
-‘ ,r
\-11-_ (L110
An” -v r- _
L. l , n.(

‘ r'.
V \‘, .
'- O A a L .. 5.. . ’
r\
I . t V‘. i L
A- .2 -~ 0 ,
'1 ’ r‘
K—w- r V- - ‘1 LT

\

EJLVJ‘F"”
tAC

11CL1’”

(A;

9

.estnuraz
’ 4
1 ‘4 tln up

I'ichi {an .

letters

0
, Assistant Cac2 ier, "Divis 0ion 2", The First
innr, 3;ie:‘o, Illinois; Lovezber 2 anfl
A 1f.;2 a
, _/ _, O

L., Vice Ere
Iruiiortifm)li:~

ioent, Fidelity
Inoiana;

Trust
1956.

‘
ERG

27,

Bank
LOVCXbCP

.ico ;re"ifie:t, “Wericen State sank, Lansing,

. 3111:! 11’, 1 5

., Vice freeiflent, Arcrican State Bank, Lansinj,
, farc‘ L, l :T.

“onweth and
'0, Illinois

ornath,
October

accountants and
00 1956.

L../’

C?

7&Ft3r?
s
J-

9

, ifiSiStant Tice President, flank of Lansing,
r-r'
iCYi“1n, Elly P6, 1935.

 

AUC‘PESUC Soggier, “"erican Fle tcher Rational

Trust Co natr, Indian"oolis Indiana, August
0

tr., nosist’nt Cashier, Rational Bank of

Lrtroit, icfii an; &CCOLD&Rle' the letter -
_2ary n ”lostsgraxt Lenein"".

Paellaneous ’
'., Fin“nein instaurant Toedc, addressed to

 

..L
.KJ

Lseoeiation
gzzi ver Si t3; ,

‘Conference at
February 5 l

v,

Kellofii
saw

/./io

Center

:‘3 ‘ )(1‘ t1

,-_)‘.'.. m I f‘ f.
v‘ s A. 0.‘ . Ls; L)

A - ., ‘ ,
; .n J. e 2.» :2

-c
, _ .
2 (”IT-"13""
‘ra‘vo‘u Q1 ’

1 (I
001:;1‘1‘522, "TJ'dt‘lJ‘

l ‘ 1

40.2.;

 

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HICHIGRN STRTE UNIV. LIBRRRIES

 

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