The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-12-20
Building AsaociafIons

1t has been felt for some time that
league of building associations should be
formed in this city. and a request has been
issued to a number of directors by Charles
N. Thompson, of the firm of Carson &
Thompson. attorneys. for conference at
his office, 10 take preliminary steps toward
q permanent organization. Mr.. Thompson
is the attorney for five associations. and b as
given the general subject considerable at
tention. Yesterday in conversation with O
Journal representative he defined the rea-
sons that made the immediate organization
of league desirable. In the first place."
he said. There are many national associa-
tions from other States dong a large and
constantly increasing business in Indiana.
OF the standing and reiia bility of these Or
CARNATIONS nothing is known. Under ex-
listing laws they are free to come and 90 at
will. They should at least be compelled
to deposit with the Auditor of State suf-
ticient securities to protect all their Ipdi-
ana shareholders. In Missouri law has
lately been passed requiring outside assO-
Citations to make q cash deposit of 800. 900
with the authorities. This Is. of course.
practically prohibition and too rigid. In
addition they should be required to
file semi-annual statements of their affairs
with the State Auditor after the manner of
the reports of the insurance companies.
This same plan ought TO be carried out
with the local societies. The secretaries
should file report every six months with
the State showing in detail the receipts and
disbursements of their associations The
correctness OF these reports should be at
tested under oath by ut least three menu
bers of the society, and penalty of at
least $500 eXacted against failure to make
such reports or 10 return false statements.
In the matter of foreign associations service
urOn any authorized agent should be
deemed service on the society.
IL am opposed TO the appointment of
State inspector. Snch an Official would
be OF doubtful value unless he
were trained expert. Such appointments
without regard To fitness. The appoint
ment OF u State inspector of banks has
been of doubtful value, and is certainly a
drain upon the concerns that are obliged
to pay him his salary and mileage. The
right TO issue paid-up stock should also be
determined by law. As the case now stands,
many of the societies find It profitable to
do this. The matter should be placed upon
legal basis. Certainly some legal restric-
ton should be placed upon.the proportion
ate amount that may be loaned upon the
value of the real estate mOrtgaged. 1t is
generally conceded that loan to exceed
66 per cent. OF fair value should not DO
effected"
ASSOCIATION NOTES.
The New Year ASSOCIATION is growing
steadily and now has twelve hundred
shares OF stock III force. There is q heavy
demand for loans.
The Northeast association will be four
years old IN March, and its first series is
expected to terminate in about eighteen
months from that time. Six series are run
ming aud all the money collected Is loaned
without tronble at n good rate of premium.
The German-A American association. or
gained a year ago. has 500 shares of stock
in force. many of them belonging to nom
residents. To date over one hundred loans
have been made. The conservative plan of
loaning only so per cent. of the value of
properties outside of this city is followed
with much euccess. By the time of the an
nuai meeting in January it is hoped to have
ten thousand shares in operation.
The Equitable Saving and Loan AssocIa-
| ton has sold all its available collections
| for over four months ahead. The society ia
now collecting about g. 900 . week, yetit ID