The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-09-04
LOANS And LIENS.
Active Discussions Stirred
Up by the Association
Conference at
Trenton.
WANTED, A STATE LEAGUE
all Authorities Favor One--The New
Law to Protect Mechanics
is Ruinous to Home
Builders.

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is Ruinous to Home
Builders.
The members of building and loan as-
sociations throughout the county are in
tensely interested in the proceedings OF
the late convention at Trenton and the
proposition to form State league OF
building and loan associations appears to
meet with universal approval. / talked
with several well known building and
loan association men last night, all Of
whom admitted they had heard the mat
ter discussed by many and found no OBJ
jections. There is also general ap-
proval of the action of the convention in
condemniDg the Mechanics Lien law.
"The idea of forming State fedora
ton" said John w. Heck, lis good one.
Legislation on all matters pertaining to
B. and L. associations will then be care
fully watched by body which will nee
essarily have more weight on legislative
bodies than an individual or an ipdivid-
ual association.
"The action of the convention in con-
demning the amendment of the second
section OF the Mechanics Lien law con-
sider proper, as no doubt the tendency of
this amendment will be to prevent many
of the poorer members of B. and L. asso-
Citations from venturing to build homes
Its operation Is mainly restrictive on the
small contractor. who, as a rule, builds
cheapest for the building and loan MEM
bers. 1t will foster monoDolies to some
extent in the building line in helping the
large contractors to get all the work; at
the same time 1t makes all builders or
owners OF new houses practically collec-
tion agents OF all material men. In their
interest the law was passed"
THE LIST OF STATE QUESTIONS.
The list OF questions which the conven-
tion decided associations should answer
in compliance with an act passed last
winter was generally approved OF by Mr.
Heck. The object is mainly to furnish
statistical information to Chief Bishop. OF
the Bureau of Labor Industries. In ref
erence to the twenty-seventh question,
which requires all. associations to tell
what relation borrowing shareholder
holds TO an association and In what re-
spect, If any, he is considered member,
Mr.. Heck said:-
81 suppose in this connection borrow
ing member is looked upon as one who
has secured @ loan on his stock, or for
which he puts up his stock as collateral
security Some associations treat this
money lending the same as having paid
the shares in full in anticipation. and give
the borrowing member no further rights
or benefits as an active member, he being
considered as having received all he ever
will receive from tha association. and his
only relation is paying the stipulated dues
and interest. The associations, however,
based upon this theory believe are very
few in number. and are of the older class.
believe all in Hudson county give the
borrowing shareholder all the rights and
privileges of a non-borrowing share
holder, which, of course, is the full right.
| think it perfectly proper that any pc
culiarity of an association should be OBJ
tanned for the general good, as I certainly
deem considering q borrowing share
holder In any different light from nom
borrowing share holder to be 3distin-
gushing mark in an association"
MR.. COLE FAvORS 1T.
next saw Mr.. Frank O. Cole. who
represented the Phoenix Association at
the conference. He said that the forma-
tion of State league would protect the
Building and Loan Associations from hos
tile legislation, aud enable them to assist
each other by communicating ideas. AN
attempt" said he, was made at the con-
venrion to organize Immediately; but
after discussing the matter at length it
was deemed that this was exceeding the
authority of the delegates, and the mat
ter was referred back to the associations. ~
As to the Mechanics Lien law Mr..
Cole said:-"Its effect is injurious to B.
and j.. Associations because where any
| material has been furnished toward the
erection of a building, Notwithstanding
contracts notices and SO on, the building
may be liened and the owner compelled
to pay for the material. Why, already
| the Prudential Insurance Company, OF
| Newark, which employs some of the best
counsel in the State, has announced that
| it will make no loan on any building now
| in course of construction or upon any
building that has been constructed
| within the past year.
''The building and loan associations ara
| opposed to the law, because it will deter
the erection of new buildings and thus
prevent the making of loans. 1t will
have.a tendency to force all builders OF
small means out of the business, thus
centering the erection of new buildings
| in the hands of a few wealthy contractors,
venting the members of building and
loan associations, who are people Of
moderate means, from purchasing
BONES" AS to the questions the associ-
ations are obliged to answer in the list
adopted by the convention Mr.. Coils
thought some of them extremely foolish,
especially Nos. 81 and 22
when an application for membership
is received by the Phoenix association y
he said, 1--WE never ask any questions as
to sex, and don't believe any other asso-
citation does. These questions were sub
stantially framed before the convention
met, and the list adopted with few alter
atoms and revisions. Some of them
Chief Bishop. of the Bureau of Labor In
dustries, wanted inserted as a matter of
gratifying statistical curiosity, and we
gave in TO him.
A VIOLATION OF PRINCIPLES.
Freeholder Nelson, in reference to the
twenty seventh question, said last night
in the presence OF Vice President Brown.
ex-Treasurer Joseph Troll and other
members of the Excelsior Association.
that wherever a distinction is made be-
tween borrowing and nom borrowing
shareholder there was violation of the
principles of cooperation as inculcated
by the general purpose of all building
and loan associations. Mr.. Nelson was
not familiar enough with the Mechanics
Lien Law to express an opinion, but all
the gentlemen present agreed that the
object of forming State federation Of b.
and L. associations was a good one.
Weather Indications.
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