Los Angeles herald., 1892-02-27
LOAN ASSOCIATIONS.
The National Concerns Sc
yerely Criticised.
Several Los Angeles Institu-
tions Hauled Over the Goals.
Report of the State Bank Commits
sioners to the Governor.
The Imputation Made That the Induce
ments offered BY Certain Build
ing Societies Are De1u-
sion and a Snare.

Associated Press Dispatches.
SACRAMENTO, CAL, Feb. 26.-At the
last annual convention OF the state
league Of building and loan associations
a resolution YVES passed authorizing the
bank commissioners to make a thorough
investigation of the purposes and prac-
tices of building and loan associations
working under what is known as the
NATIONAL" plan. 1t was further re-
solved that the result OF the investiga-
tions should be reported to Governor
Markham, and yesterday report was
filed. 1t contained the following Sec
tions:
'The Fidelity Savings and Loan asso-
citation of Los Angeles claim that shares
will mature in seven years, and that the
profits in that time will about equal the
amount paid in by members, which, in
our Judgment, is a very alluring induce
ment, and it remains to be seen whether
or not these promises will be verified at
the end of seven years. 1t appears thas
the expense fund, as usual, is the best
part of the business. The majority of
borrowing members are deprived OF
any voice in the management of the
association.
Whatever advantage the National
Building and Loan association of Los
Angeles offers to its patrons is shown by
the amount it costs to maintain the
company, which foots up the neat sum
of 1884, ,767. This is only for six
months. 1t appears that the manage
ment receives annually $4,000, and
under the circumstances, the question
arises, what's there left for the investor?
1t is evident that the public is being
deceived, and yet all moneys are being
handled in perfect accord with
complain, as virtually they are doing
is their ignorance of the National sys-
of furniture which cannot be deemed as
which it is claimed is $381 $50, may be
bility that loans aresoad, but admitting
that they are good, this association has
not sufficient assets to meet its
liabilities. The monthly receipts are
$40, ,705, and as long as these continue
prise that absorbs -25 per cent in ex-
penses must, in the end, work injury
upon it's contributors.
"The report of the Imperial Savings
and Loan company of Los Angeles was
received after repeated requests. From
the figures given it would appear that
this company is Using about twice as
much borrowed money as it receives
from it's members. Nearly one-fourth of
it's membership is delinquent, which
is remarkable, when it is generally be-
lieved that prompt payment is an es-
sential feature of bank and loan associa-
tions. Fines and withdrawal penalties
are more or less similar to those of other
national institutions, which,appears un-
fair, in alleging unreasonable expenses,
and yet promising to investors greater
returns than are obtainable.
"While the so-ealled local building
and loan associations offer to their pa
irons the advantages of cooperation, the
so-called Nationals, although identical
in their purposes, seem to deprive their
patrons of the very objects for which
building and loan associations were or
.,ganized."