The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-03-07
AFrEkNooN SESSION.

loan AND BUILDING ASSOCIATIONS
The bill II. r. 299l to provide for build
ing, loan fund and savings associations com.
ing up as a special order
Mr.. MCINTOSH called attention TO a pro
viso in Section 4, which seems to declare
forfeited money paid In because the whole
subscription is not paid in; also, in Section
-. pIoYidirg for further f0rfsltures.
NJ. MAGE understood Section 4 TO mean
that the money paid in was to be held As
sort OF security for the payment OF install.
ments, bat did no. think forfeiture would
work without proceedings in a court o. com-
petent jurisdiction.
Mr.. CAMPBELL OF St Joseph: This bill
comes under almost all objections to usury
bill; besides, preferred stockholders may
hold 90 per cent OF the stock. Then these
corporations may mold almost unlimited
property A cursory glance al the bill iudi-
Gates that Il should receive a careful. con.
siceladon. THIS seems TO be, boiled down,
vicious legislation.
Mr.. BlLLiGASS: There is similar lev
on our statute books, commencing with
Section 3, l0l OF the code. This bill gives
greater latitude than the present law. There
can be no forte ture EXCEPT by borrower,
The bill gives the association the right TO
loan TO outsiders, and does not interfere
with the law as il now stands. he had
known many men % acquire homes with
the aid OF these associations by paying but
little more than rent would cost FOR five six
or seven years. There can be n I'M 1stice
growing out of this bill, bat 1t would be pro-
ductive OF good
Mr. DAVIS: am very strongly in favor
OF the building and loan association la X as
IL stards. This bill is not subject to the crit
icism inside by the Senator from st. Soseph.
These associations never charge more interest
than the law allows But there are such Sc.
rious objections to this bill can not support
H.. IL proposes some radical changes TO
which am opposed. The section proposing
TO make preferred stockholders is all wrong.
There also are objections to Section
Mr.. OVERS rREET: IL is said the present
Jaw has worked we'll aud done much good ;
then why not leave il alone? This bill pre-
scribes that no premiums shall be deemed
usurious. 1t is dangerous bill, and ought
not TO pass
Mr.. WINTER has been a manager of a
Building Association for mary years, and
by the aid OF such associations many have
acquired homes who otherwise would not
have homes. This bill is an insidious
Legitimate purposes by allowing the mana.
gers to reap a rich harvest from outside 3.
There is wrong about II under the pres
ent law, but this bill would allow usurious
intert st of the worst kind. As now operated
they may be called the poor mans bank
Under this bill a small minority OF the stock
holders would have all the profits, with bat
few exceptions.
The bill was rejected by yeas :, nays SO.
HIGHWAY DISTRACTIONS.
On motion by Mr.. MCCLURE the bill
H. Il 1l0l IN relation to the removal of
distractions from public highways, was
read the second time and passed under a
disptnsation of the constitutional rule by
aye and nay vote, and finally passed by
yeas 81 nays 0.
BUILDING AND loan ASSOCIATIONS.
The bill a. r 1911 for the Incorporation
Of building. losn fund and savings essocia-
tons, special order, was read the third
tine.
Mr.. BAILEY: There has been no law
upon our statute books that has d0ae so
much for the welfare OF the people as this
law. They encourage people to save their
earnings. In this city these associations
hsve become more and more popular. They
have built up hundreds of homes. They are
mansged so economically that the percent
tge Of losses is exceedingly small. There
would be no danger of making continuous
assoc alton. These associations have had an
influence IN lowering the rate of interest
Losns to persons outside of the associations
have been allowed under the present law.
Most OF the associations receive only per
cent. while the law allows them per cent
Mr.. CAMPBELL, of st. Joseph As this
bill now star ds IL is, in my mind subject 20
great criticism. see in 1t only a scheme to
OTgsnize q corporation, With the power to
have q million OF dollars of stock, and under
the nsme of premiums loan il a. a usuri0Us
rate OF interest, as il provides that loans may
be made NOT only 10 stockholders, bat to
these outside. and premiums or bonus be
taken as consideration for such leans being
granted. There is no reason why such power
Of Usury should be given to these associa-
items any more than that such privileges
should be given to savings banks. As the
/ bill now stands IT Is vicious and dangerous
Mr. DAVIS: believe the question has
/ been fully scussed. The Supreme Court OF
Pennsylvania has decided that taking preml-
ums for priority OF loans is not usury. 1t has
| been decided this way in Indiana. The
workings OF these associations have been ban
ehcisl. The objection OF their being associa-
tioDs with large capital IS not valid, when
We understand that the funds Of the associa.
tons al put out in mortgages, samll loans,
etc.
Mr.. WINTER: The contemplation of these
associations Is that, at FIRST, the man who