The Indianapolis journal., 1891-10-18
BUILDING ASSOCIATIONS.
Safeguards Thrown About the Work la Ne

Safeguards Thrown About the Work la Ne
braska-Savings Society Festival.
Everywhere there is growing dlsposi-
tion on the part of building association
members TO have greater safeguards thrown
around their interests by the legislatures
of the different States. This disposition is
taking form in the shape of petitions to gen.
eral assemblies in such States as contain no
building association leagues, and In off,
cial action by leagues themselves when
ever organized. The State of Nebraska has
lust passed q law regulating the actions of
the savings societies that is both terse and
broad in its provisions. All foreign asso-
Citations wishing to enter the State must
submit to the banking board a statement
of their financial condition and copy of
the laws oil the State under which they are
organized. In addition they must produce
copies Of their charter. constitution and
by Laws. and satisfy the board of their
financial strength. A further examination
must also prove that the laws of the State
under which the association Is organized
are stringent as those OF Nebraska.
Hereafter all local associations organized
in the State must conform In constitution
and bylaws to the following points:
l. The associations will be required TO publish
reports of their condition.
State officials.
o.
see that unsafe associations are put In the hands
OF a receiver.
4. The State law Furnishes officers Of building
associations for making false reports or false en-
tries on their books
5. Their bonds and mortgages must be nego-
s. Their constitutions must contain pro-
Visions
(a) For the right to withdraw as prescribed in
Ibl For the right to prepay loans.
(c) For q rebate OF advance premiums when
loans are prepaid.
z. Tho shares must he non forfeitable.
3. The association must be cooperative, In
fact as well as in name.
8. The associations are restricted IN salu-
tary manner as TO the acquisition ana holding
OF real estate.
10. Their organization papers must contain
no unjust. inequitable or oppressive features.
IL. Their organization papers must be ap-
proved by the banking board, and cannot be
amended without its consent
All the above safeguards are guaranteed
by law. and are so manifestly Just and SEN
sible that they will stand AS guide to
other States in establishing regulations of
similar kind. Never in the history of
financial institutions has there been SO
stupendous system of popular savings
lnaugurated as in the building society
scheme. That the most absolute safe
guards should be thrown around the organ
lZaflon ana carrying on or these deposi-
tories OF the people is self-eyldent. and II IS
a source of congratulstion TO all friends of
the movement To see the State Legislatures
taking the matter squarely In hand
A few weeks ago the allied building as
sociations OF Cincinnati gave a ''cO-opera-
tive festival" at a beautiful resort near
that city. The speeches extolling the asso-
cIation idea were made by prominent rep
resentatives of the saving society interests
and the meeting IS said TO have aroused re-
newed interest in the associations and their
work. The idea could be protitably fol-
lowed out in q modified form every where
Association Notes.
The Etna assocl alton can make few
high class loans.
The Provident association. at 81 East
Market street. still has money TO loan TO
builders.
The North New Jersey street association
has all its funds out. and applications for
more than IL can supply.
The Alex. Metzger agency closed out the
entire Beatty addition this week at auction,
comprising eighty -four lots.
A number of new homes are being erected
on Pen 1syl ylvania street. near Fifteenth. al
most al of them being built with associa-
tion funds.
lie A. g. ,l.