The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-20
SEEMING VICTORY
EXPENSE FUND ADVOCATES WIN
AN IMPORTANT POINT.
senate Building and Loan Associa-
tion Bill Recommittcd to the
Committee ON Corporations.

in prospect in the Senate yesterday morn
Ing brought out the largest and most dill
gent lobby that has been in the Senate
yet this session. The bill that was the
special order was the substitute for the
Newly bill which had been presented by
request. Senator Newly has been some
what annoyed at the number and emphasis
of the petitions and memorials that have
assailed the bill that bears his name, and
1t is not generally known that he had moth
ing to do with the drafting of it and did
not approve it's provisions any more than
those who are assailing it. The substitute
that was offered was drawn by the commit
tee on corporations, and Senator Newly was
its chief champion on the floor of the Sem
ate yesterday.
In advocating the adoption of the report,
which recommended the passage of the
bill. Senator Newly said that the opposition
Of the officials of the big companies to this
measure had enabled him to make the
acquaintance Of nearly every building and
loan man in Indianapolis. They had i'm
portuned him not to force the passage of the
bill. and as an inducement to comply with
their request he had been invited to come
in on the ground floor of some very tempt
ing enterprises that would langush if the
proposed changes in the law were made
The bill under discussion provided that
the officials shall render each year an
account showing every item of expense
the salaries of officials and every other ex-
penditure; abolishes the expense account
and makes paid-up stock taxable.
Senator Newly said that he had been
SHOWN the great profits of the business as
an inducement why he should accept the
invitation to come in on the ground floor.
The disclosures that had been made to him
had convinced him that the building and
loan business had grown to be monstrous
abuse, and if there were not legislation to
confine it within reasonable bounds there
would be a crash some day that would
startle the State. The bill that had been
recommended was necessary to protect the
shareholders He denounced the methods
in vogue in some Of the associations as no
better than three-card monte game, as
sisted by juggling of figures that even a
bank expert could not understand. Unusual
means, he charged, had been adopted to
prevent any hostile legislation at the hands
of this Legislature. A meeting of building
and loan men, he said, had been held at
which they had levied assessment of
$500 each to defray the expense of defeating
this bill. He did not charge that the money
was to be used corruptly, but it was always
oa 70 He ha he no
there in the interest of any particular kind
of building and loan associations. He did
he was determined the man VINO dug
in the soil, and who worked in the shop,
should have some protection from the men
who were organizing these associations
that some might draw immense salaries and
that others might have. a place to hide
that otherwise ought to be listed for taxa
ton. He agreed with Senator Vail that it
cessful manager Of a building and loan as
ISOLATION. 1t took talent that could con-
vince a man against his better Judgment
1t took a talent that could convince that
black was white. 1t took the same kind of
talent that it took to sell lightning rods.
orbitant salaries, Senator Newly stated
that it was shown that one of the GEM
panies operating In this city had an ex-
pense account last year of $43. 900, and this
company had had the magnificent mag
nanimity to turn over as unexpended the
they should not have kept the $24O and yet
they were claiming that the expense fund
Senator Vail was opposed to the bill, for
the reason, as he stated, that while the
penses sometime seemed out of reason, yet
when the amount of business that the large
companies handles was taken into consid-
Grafton the money of the investor was
handled more cheaply than through the local
Senator Shiveley in a short speech said
he was in favor of the building and loan
and managed, but under the present methods
1t had degenerated into a system whereby
immense salaries. There could be no. adj
vantage to the common everyday stock
off every dollar that was paid in the sum
of ten cents for the expense account. The
dollar deposit I Immediately dwindled to go
these institutions as a director A SUBJ
scriber. who had withdrawn came to him
for deposit of sioo He did not 1 under epo
stand it himself and had asked for ipfor-
the expense account had eaten up the diff
ference He Immediately resigned. not wish
ing to be in the way of the crash that was
plan. When any company took ten cents
from every dollar that was deposited. it
of a common steal. He believed also that
when a man paid down his money and got
transaction as when a man bought a share
Of bank stock and the share of building and
loan stock should be taxed.
Senator Wishard gave it as his opinion
that the Legislature should go slow in the
matter of changing the conditions under
grown up in this State. Radical changes
he stated might result in disaster and
earnings in these institutions, and the
country had too recently tasted of the
bitterness, of financial collapse and disaster,
to take chances on the destruction of the
building and loan institutions of the State
He was in favor of a law compelling the
count of all expenses including the salaries
to officials. and the subscribers could find
from these published figures whether they
were being robbed or not. In addition to
this the expense account should be abol-
ished and paid up stock taxed, but he
thought 1T would be mistake to go any
When the Senate met in the afternoon the
and the bill was ready for amendment A
number of amendments were offered. The
Kern proposing to limit the salary and
attorneys fees account to $780, Senator
Il orr lfaH