Omaha daily bee., 1893-11-12
REGULATIONS Thai DO NOT REGULATE
The Vsgaries and Isesnsasncnct-s Of the
state Ranking Bsard-tm.rsi &--Oeta-
tlons Given Otnrial -an~rtiun-Speci-
GcArsonr Of n SHfn Game.

ole were ABen N ana neab-y pllckeu-
This they could not aE5rg o. DO. Is il in
VOWED the loss Of perqlisiSes 50 attractive
10 the managers. They dia not withdraw
hastily, however. Several agents lowered
about the capitol whLe the Legislature was
II session. watching for al opportunity 10
nullify the INV.
Previous 70 the decision OF the board the
Law was q dead letter Although specific
rules were laid down for the organization
and government Of building and loan ASSOC
Citations. the board became Indifferent, aad
permitted al ki-ds 30 invade the state. The
reform i-naugurabed n January, therefore,
was hailed as a triumph for genuine cooper
alton. Later on the determination Of the
board to give vibaIty 10 the letter ana spirit
Of The law was affirmed The Bankers
association Of Omaha applied for a Ger
tltcate. ana Med articles o. Incorporation
and bylaws. A protest was fled By the
] State League Of Local Building and Loan
Associations against certain Textures OF the
Bankers plan anu the objections we're sus-
bained by THE oourd. Tue chief objection
able features were the collection Of q sepa-
rate expense fund and the issuance o. paid
up stock, both OF which were ordered
stricken out. The rulings Of the board were
regarded as establishing Important pre-
cedsn1s tor the future, and gave substantial
effect 30 the building association law.
A suocessluI pun.
Foreign associatlons chafed meanwhile.
The restrictions imposed baf1ed their Efforts
for a time. Ii remained for an Iowa rusJIer
TO blaze a pIInway anu introduce. with the
I approval OF the board. al the objectionable
/ features Of foreign NATIONALS ind the precise
( provisions which were stricken from the
original papers Of the Bankers association
The Iowa Central of Des MONIES WIS one
Of TIE excluded which sought admission
/ Mr.. John Gibson 4 Cres5on banker. and
John A r HILL member Of con-rass, chief
/ plshers for the Des Moines concern. made
several pilrriTuages 30 Lincoln. They re-
-arded Neareska as u rich field Of operation
and sighed for i chance 10 handle Nebrask1
money al i SING percentage. Finding nc
objection 10 an assOcIatlon lncUrD0rabed II
the Stale, they organized the NeorasGa Ma
Ii0nal and secured d certificate on May l.
without any Of the restrictions imposed on
other similar organizations. The pull Of
Hull and Gibson WIS effective not only III
TIRE start but II NOW seems Of a s1esl-rITebeu
calber thai ce1es Attack.
Keep 1t Dark.
Soon after the issuance Of the certificate
the State LeaEle called the board : attention
10 the fact that the Iowa. alias Nebraska.
concern had Incorporated feabures II lis
plan which the bnare haC u few months De-
fore pronounced Illegal What action The
hOard bOoE on the protest WIS hedgad In
with much secretly. and al efforts by mail to
learn- definitely whit action, If any. WIS lad
were f-ruil1ess. The president Of the State
Len-ue called At the state house, Friday Of
last week. ana was assured by Mir. Igwuleg,
clerk Of the board. that some alBera rions
w-re ordered IN the plal. Among other
chanres ordered, ne said, WIS the reduction
Of the expense fund TO 10 per
cent The issuance Of paid I'D
STOCK was permitted, but without
Z EaaranGas Of specific profits, The con-
siiBuIi0n and bylaws, which ara usually on
file In TIE Office. had been taken away for
the purpose Of changing the name, anc an
Z u-u-wrnnrIrn .nF IL my TlpHIfIT JRn pu.4m not
be had
IrrecuacisabIe ta1emrnts
subsequently an agent Of the association
positively asserted THAT no changes had been
ordered and none made. The only change
made WIS the substitution Of the word
-Cenazal" for National II compliance
with orders from uhs comptroller Of the cur
rency. Here were statements that could
not De reconcl-ec. The ratio Of fiction 10
flcL could not be ESLa Without further
proof. A letter dispatched 10 the mann
Office N LinUDla brought in response Z copy
OF the revised constitution and bylaws,
as well Us some interesting literature. a
comparison of the revised" constitution
win one issued May last c0ufrms the asser-
ton Of the agent. Not a section or 4 Line,
or Il word has been changed, with the Ak
ception Of the Title.
Dsd The sLaIe board order any changes In
the plan Of the Nebraska Central Building
and L0an assoclatiUu2 II SO. whg nave they
not been Incorporated N the assOciatlon' 5
prin ted mat1grR The association sho VeC
much UronpUTude IN complying with the
request of The national banking denArtIneut
ana has since issued printed matter with the
changed atle, but the orders Of the Ne
braska's onnking board il any were issued
? appeAr 10 be Of no consequence.
A PtueKIng Plan.
? The Iowa concern Incorporated in Ne
braska OperaJes the oroadesU kind Of
= n-aIianal plan continuing ~feaIures which grl
unjust and oppressive auu unauthorized D.
law. IL is not a whit better than the con
securiye pond plan against which the stati
= board numbered a few weeks ago There il
nothing IN The building and loan law author
iZing the issue Of paIa up stock Thai sEs
TEN though largely favored, has heretofore
been frowDed upon By the ooura. When al
c Omaha association not long ago sUugnE b
Y Issue paid Up stock Attorney General Has
q ungs advised the secretary JnAI such actor
would be illegal The Iowa capitalists IA,
no difficulty IN securing privileges denied !
home Institutions.
c a snug Raks-OE
c The odious feature Of the Nebraska Cen
q ural plan Is tire coleCtlOn Of an eXpeus
G fund Local assaciatlOns IL Nebraska haV
L persisuenulY fought this tenure because il I
r robbery IN the Euse Of cooperation. With
0uT the separate expense fund auriOnal assu
Citations could not compete witt mutual asso
~ciarlons. The lAIters eXpenses. rurely q
ceedlng / per cent Of the money handled, ar
: puid OUT Of the pratrs. The former Ink
, from 10 10 20 per cent Of monthly install
C men1s and rarely accounts for il. On ID
) remainder a ing Of blg profits is made 1
u tickle detuded patrons. Ia the Aebrask
plan IL is expressly provided tnat the e.
pense fund is 10 constitute No part Of Tn
capital stock The monthly payment On
share Of stock Is go ceuus-5D cents lie tn
loan fund ana 10 Genus 10 The expense funl
One-siXIh Of al payments 70 lnbo the NAM
" gers pockets and constitutes no part Of Ia
- capital stock Besides buis snug rake-s
Is there Is an Initiation fee q 81 per shars
According 10 the associations semi-ann1a
statement A,437 shares were IN force OctI
Der 81. and N eq1al RuDDHr OF dollars role
= into The managers pot. No mention Of Ii
initiation fee or the expense fund is made /
= the semi-anu1aI report n Is claimed !
jusfi6caLlum Of the expense fund ia this cas-
thai The unsxpen0ec balance vii De carrie
into a surplus fund for The benefit o. shar'
= holders. But how The bylA gs provide
- This surplus FIND shaA not De app0rri0ne
anul the InstALmeut STOCK first written
n about 10 mature II that Time Il stall De cor
: EerIed into the treasury as profits Of the a
: sDcla1Un
: How Il srkA.
Experience shows that IN the best ma