The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-10-15
ROBBERY CHARGED.
Lively Times at the B.
& L. Convention at
Trenton.
NORTH VS.. SOUTH JERSEY
"
Assemblyman Eisele Says Hard
Things Against E. Amber
Armstrong; Association.
NORTH VS.. SOUTH JERSEY
Special to the Jerscu Cttv Meas.

TRENTON, Oct. Is, 1S94.-The Building
and Loan Associations held their semi
annual meeting in the Assembly Cham
Der of the State House Saturday to
consider the bill they some time g pre-
pared for Introduction. President Dewitt
Van Buskirk Of Bayonne called the meet
ing to order, and about seventy delegates
answered Secretary Forman's roll call.
Chairman w. B. Smith stated that the
bill had been prepared carefully to meet
all the requirements, and it had been
afterwards GRATED by the Leagues Ex-
e~cutive Committee. The purport of the
bill was to place all associations on a
uniform basis and regulate fines, for
FIXTURES, premiums and methods of d.
viding the profits equitably. 1t aims to
prevent moneyed men from obtaining
by means of proxies. 1t differs from the
present system, which entities each share
holder to as many votes as ne has snares.
Under the proposed law a shareholder is
given the right to withdraw from any
association upon a reasonable notice with
out losing any money as they DC now.
THE TROUBLE BEGINS.
Ex-Judge Armstrong of Camden was
opposed to the bill, and it soon became a
question between North and South Jer-
sey. When the seventh section was read
the storm broke. The section specifies
that every association hereafter incor-
porated shall consist of president, treas
of 1t least six members; that the presi-
dent, vice president and at least one
third of the additional members of the
board of directors shall be chosen annual
ly at a general n regular meeting OF
the shareholders of the association; that
at that electiontno shareholder shall be
entitled to more than one vote, but no
proxies shall be allowed; that not less
than a majority of the whole board of
directors shall be citizens and residents
of this State; > that the secretary,
treasurer and other Pituitary officers
agents shall give bonds to the associa-
ton for the faithful performance of their
respective duties in such sufficient sums
of money and securities as shall be deter
mined by the board OF directors, and shall
renew the same annually; and the Of
ices of secretary and treasurer shal not
be held by one and the same person."
A dozen delegates were on their feet at
once with as many amendments. But
Judge Armstrong was recognized, and ne
began to explain that he enactment of
this section would mean ruin to the Cam
den Association. He said, men put their
money in building associations the sama
as in any other investments, and with
this section on the statute books one,
hundred men, with one share each, could
control the management of the associa=
ton. Then the provision to have the ma,
jorlty of the directors would abolish all
foreign associations doing business in
this State"
NORTH JERSEYS INTERESTS.
Assemblyman J.. C. Eisele took up the
cudgels for the North J~erseymen, ana
insisted that it was proper and just, as
it would protect the people from. being
robbed by Nationalist" and sin sim ia as as
section was adopted. The next section,
empowering shareholders to elect their
own ~boolSkeeper was stricken out after
an hours bitter argument. The tenth
section, providing when any unpledged
shares of any series reached the ma
tured value specified in the constitution
or certificate of Incorporation, all pay
ments of dues thereon shall cease, and
the holder thereof shall be paid out of
the accumulated funds of the assocla-
at an annual rate per cent. prescribed
in the constitution, from the time of the
maturity to the time of payment; pre-
vided, that at no time shall more than
one-half of the funds in the treasury
be applied to the payment of such ma
tured shares without the consent of the
board of directors, and that before pay
shall be deducted" stirred up another
argument, and the South Jerseymen. de-
clared no loan association could retain a
delegates became warmed up, and E. p.
Reed of Camden moved to lay the mat
ter over until the regular annual meet
ing. c. A. Cook of Montclair objected,
and he introduced the following:-
"Resolved, That it is the sense Of this
League that the present laws provide al
the safeguards THAT are AcCSSSdl " Pi.O-
teet the interests of the shareholders"
ROBBERY DIRECTLY CHARGED.
Ex-Judge Armstrong moved for its &C
ceptance, and he was backed up by his
fellow South Jerseyites. Chairman Smith
of the Executive Committee, SAT- that
the passage would be a slap at the
Legislature, which had requested the
League to agree upon some law, when
would place the association under the
control of the State. Mr.. Cook could not
agree with him, and Mr.. Curley of Cam
den sided with Mr.. Cook. Assemblyman
Eisele arose, and pointing to Mr.. Arm
strong, said
"something must soone or later be
done by the State to take supervision OF
loan associations to protect the people
for some of them are nothing but rob
berry. The Legislative Investigating Com.
mittee his year found out that one Of
the associations with which Judge Arm
strong is connected was robbing the PEG
pie. Why, sirs, they are charging the
poor working man IS per cent. interest.
isn't that robbery"
Judge Armstrong replied that he was
connected with half a dozen associations,
and had never. before been accused OF
open robbery, and he would not take 1t
as a personal reflection. Secretary For
man said it was a Philadelphia concern
Mr.. Eisele was speaking of.
A vote was taken, and amid much ex-
element Mr.. Cooks resolution was
passed by a vote of 2S to II, and the
meeting adjourned.