The intelligencer. [volume] (Lexington, Mo.) 1887-1891, 1889-06-08
FOREIGN BUILDING AND LOAN
ASSOCIATIONS.

One of the best things the thirty
fifth general assembly did was the re-
curing of an indemnity fund from for
eign building and loan associations.
Until now these associations were
under no responsibility whatever to
this state. While many of them are,
no doubt, solvent and good business
companies, others are very Tar from
being so. These came into the state,
established agencies in almost every
county, certainly in every town of any
Importance, prOiessed 10 be organized
under some national law, To be there
fore saler than home building and loan
associations, and asserted that because
Of their larger field they could pay bet
Ter dividends to stockholders, at the
saIne time if the stockholders desired
loans these could be made at lower
rites of interest. Ga these representa-
lions a great many subscribers TO the
stock of these companies were obtained.
To protect them from possible i'm
position and fraud the legislature has
very properly passed Il law, which,
after specifying how many persons il
shall require TO form Il mutual saving
fund, loan or building association,
no mutual saving fund, loan and build
ing association or company, aSsocia-
ton or corporation organized under
the laws Of any other state or territory
to carry on a business of like character
TO that authorized by this article shall
be allowed to do business or sell their
stock in this state, without first having
deposited with the state treasurer the
sum OF $500, 900 as a guaranty fund, Tor
the protection and indemnity of the
citizens of the state of Missouri, with
whom such companies, associations OF
corporations shall do business-the
sum so deposited to be paid by the
treasurer to the citizens of Missouri
only, and not then until, upon proofs
filed with the treasurer, he shall ne
satisfied that the claimant has sustain-
ed some loss by reason of his having
done business with such foreign COM
pany, association or corporation. ANY
person or persons who shall be found
III this state as agent, or in airy other
capacity representing any such foreign
company, association OF corporation
which has not complied with the pro-
visions OF this section, shall be deemed
guilty>of a misdemean0r, and upon
fonyfeflon shall be punished by a fine
0kreeding 81 900 or imprison-
fhe county Jail not exceeding
44}49S5ths, or by both such fine and
imprisonment"
This law will exclude from the state
all wildcat companies, at the same
time that 1t need not bar ont any solv-
ent and reliable ones. If the sound
ones prefer to deposit 300, 900 with
the state treasurer as an indemnify
iuuu uSdiIot lOSo " CltlZcnS OF Mis- |
souri, they may do so. If not, they can
very easily incorporate under the laws
OF Missouri which will only cost them
the tax of $50 tor The first $40, 900 or
less of their stock, and S. OH each SUBJ
sequent $4,000. Many may prefer
to do this, and certainly none should
complain when the requirements are
only those 10 which home companies
of a like character are subjected.
In the mean time, whether or not
they like the law, persons who think of
doing business Tor such associations
without complying with its require
will do well to examine it a
little carefully, AZ the penalties pro-
vided are not only somewhat seriou 3
but very apt to be enforced.