The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-11-26

Chr 5nteIIiae,1eer
wIrEELINo, NOVEMBER 30, 1894.
nniihinr nna I.onn Assoela.lons.

Building and Loan Associations.
The arrest in Pittsburgh OF persons
conducting the Fidelity and the COL
umbia building aud loan associations
starts judicial investigation that will
be watched with keen interest. The
affair may for time hurt oil associa-
tions that come under this head by un-
settling public confidence in them, but
in the end only good can come Of fasten-
ing public attention on associations that
. are not properly conducted and weed
ing them out as fast as possible.
II the concerns that have got into
trouble be guilty as charged they can
not too soon be driven out of everv
field in which they operate. The gem
eral accusation is that the associations
raided by the Pittsburgh police have
been taking all they could get and pay
Ing out nothing. Stockholders desir-
ing to withdraw could not get their
money. II they wished to borrow the
associations would not lend.
II these things be true the associa-
tions were doing kind OF business very
far removed from the business OF
building and loan associations One OF
the concerns raided in Pittsburgh has
been doing business in Wheeling.
There seems to be some sort Of connec-
ton between the two. They both OPP
crate under Virginia charters, which
do not give to the shareholder such pro-
lection as he gets under the laws OF
Pennsylvania, New York, Nassachu-
sets and other states that look we'll to
the interests of the thousands who seek
this simple and wonderfully successful
form OF saving aud investment
In a few of the states examination is
provided for building and loan associa-
tions as for banks. The Pennsylvania as
sociations which are conducting lesit-
innate business will this year ask the
legislature of that state to provide for
such supervision. West Virginia should
do the same. The building and loan
association has come to stay. 1t has
made it's own place and fills it well. For
this reason 1t Is inviting to adventurous,
and should be most carefully guarded.
The pubic can protect itself by hav-
ing nothing to do with associations
about whose managers and manage
ment it knows nothing, but there is a
protection which only the state can
give. and this the people Of every
state should demand. one result Of the
stirring up in Pittsburgh will be to en-
phasize the demand for state supervt-
sion in Pennsylvania. The movement
in Pennsylvania and elsewhere will be
opposed by those only who have their
own reasons for preierring to operate in
the dark.
The United States commissioner OF
labor has Just issued very interesting
and valuable report on building and
loan associations in which it appears
that these associations number 5,S3S
and hold OF the peoples money the very
large aum OF s450,0OO,00O, The report
says Of them:
"a business represented by this
great sum, conducted quietly, with little
or no advertising. and without the ex-
perienced banker in charge, shows that
the common people, in their own ways,
are quite competent to take care OF
their own savings, especially when it is
known that but IS OF the associations
now in existence showed q net loss at
tho end OF their last fiscal year and that
this loss amounted to only $4,000"
Loss is reported from but one ma.
tional association, which was located in
Nebraska, and It's loss was but Sl,256.
The difference between local and ma
tional association is that the local con.
fines its operations to its own commu.
nifty, while the national operates In a
wider field. The report already quoted
says OF tho nationals that the prejudice
which has existed against them Is be-
ing overcome, land they are conducting
their business, us rule, with the same
integrity that the locals display in the
conduct Of their affairs."
Az there are Adventures in all Iiues
OF business so 1t is not strange that so
inviting II field as building and loan
attracts men who have nothing to lose
and everything to gain by abusing tho
public confidence; but careers OF this
kind are usually short. Persons who
desire to save and to got homes through
building and loan associations can
easily find associations in which they
will DO safe. Dishonesty managed
associations arc tho exception, not by
any means the rule.
--Gs--
YALE and Harvard have banged each