The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-09
B.ANDL.LEAGUEMEET'S
EFFORT TO ABOLISH EXPENSE FUND
DISCUSSED AND APPROvED.
to National League Meeting
Selected.

The Savings and Loan Association League
of the State held its fourth annual meet
ing yesterday at the Statehouse The event
of interest at the morning session was the
reading OF the annual address by President
Charles n. Thompson. The paper was
largely devoted to the attempted legislative
action in reference to the much disputed
expense fund.- Mr.. Thompson told OF
the action taken by the league toward hav-
ing the expense funds abolished only
about one-fifth of the associations reporting
to the Auditor last July had an expense
fund. He outlined the mode of operation
of these associations, saying that by the plan
now in operation, whereby the associations
collect one-tenth of l per cent. of the
par value of the stocks the officers of Those
associations have proprietary interest in
the money contributed by the shareholders,
ranging from Il to 20 per cent.
Their manner of increasing the expense
fund, Mr.. Thompson declared, is to make a
house to house canvass for more stock and
by promising impossible returns for the
investment, secure considerable money from
servant girls and mechanics. Then to get
the large earnings guaranteed, they place
their money in village and country prop
erty where values are very uncertain and
they meet with large losses. They pay
these from the expense fund and the result
is the association does not have assets
equal to the liabilities until the earnings
cover the deficit and If the same reductions
and liabilities continue it is uncertain
when the assets and liabilities will be equal
This condition OF things, Mr.. Thompson
argued, would soon bring all the building
and loan associations into dlsrepniei, IL
action be taken on tine matter, pat an
enormous lobby was organized 10 oppose
such action. and to this MIR. Thompson at
tributes the defeat of all attempts at legis-
lative action. He said the House was IN
favor OF such action and that the lobby
the success was better, as all measures
tending to restrict the building and loan
associations were killed.
He said that the public press had con-
tained charges of bribery in the Senate,
fused to investigate and he said that the
Senate owes it 10 itself and to the State TO
appoint an investigating committee 10 look
As to the investigation into the methods
of business of building and loan associations
'.rhe act of 1893 gave the Auditor OF
State authority TO. examine building and
q report filed with him that II Is doing an
unsafe or unlawful business. ! think THIS
eas strct sheuS as nj o he law Ths
are reports of associations on ME In his
office showing annual expenses IN excess .s
penses from 20 to IS per cent: OF receipts.
These reports were approved by ms pre .i..
expense charges be made In addition. to
the dues. 1t is the practice to deduct
Auditor refuse to approve a report where
the expense fund is not made in addition
to the dues. If the report does not show
league should further insist that the re-
poris furnished to the Auditor be printed
as an entirety. and not separated into parts.
liz may add little expense, but the state
would be justified ed IN doing . IT, oe,css
for the year. All of the present incumbents
were retained as follows: PRESIDENT, g, n.
Thompson. Indianapolis first vice president,
r. b. Orr, Anderson: second vice president.
ID. n Foster Fort Wayne; secretary. A. T..
C,utheil, Winchester; treasurer "A. A. Young,
Indiana polls; executive committee, j. ID.
Johnson, kokoino; !. II c. Royse. Ierre
G. A Bookwaloer indianapolis Fremont La
Jones, Fort Wayne.
G. ~ Thompson. president Of the league.
was reelected despite his protest. He an
nounced that he desired ~ retire from
official connection with the league. but the
delegates would not hear to ~ The after
noon was devoted to the discussion OF mat
ters concerning he operations OF saving and
loan associations Many of the members
were OF the opinion That the Expense tund
should be abolish he'd. but no definite action
was taken The question of taxation was
considered and the conclusion fenched that
a measure of this character would work
great injury TO the saving and loan sys-
tenn. One of the chief topics discussed was
the question or equalzing the supely and
demand for MONEY e ANOTHER ir,Por'qnt ieaf
premiums required on loans. The majority
OF the members contended that ne prem
rather than legislation.
Prior 10 adjournment YESTERDAY evening
delegates were appointed 70 the noetlns
League al Cleveland AS follows: Rev. Faith
err O'Donaehue Indianapolis; George w.
odell. Of sheibyyiis J sdI,,s x; II s Hort e,
bany: C. A. Bookwalter and &. y. Tbomp-