The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-17
A NEW B. AND L. REPORT
MOST MISTAKES DUE To ASsoCIA-
TIONS THEMSELVES.
State Commission Supplements Its
Finding of n Few Months AgO-The
National Unions Affairs.

building and loan commission appointed by
Governor Matthews, composed of John III.
Holiday, James E. Mccullough and Bel
lamy Sutton, filed it's report with the Gov
ernor, a few months ago, this report was
very severe upon some of the associations.
So much objection was raised by the Off
GERS of various associations that further
Investigations were made, and the board
| yesterday filed the following supplemental
report with the Governor:
In the report heretofore filed reference
was made to two tables thereto appended,
containing data touching assets. receipts,
earnings and expenses of forty associations,
of which twenty were expense-fund asSo-
Citations and twenty were noneXpense-fund
associations. These tables were compiled
from the official printed report of the Au-
ditor of State. AS that report appears, the
tables were correct with the exception of
one clerical error. This error occurs in the
case of the Indiana Mutual Building Loan
Association, in the item of expense, which
is stated in the tables to be S3l,2lS.4S, where
as it should have been $50, 219. As. Since the
former report of the commission was filed
it has been claimed on behalf of some of
the associations mentioned in the tables
that the tables were not correct in fact as
to such associations. The commission. after
hearing explanations from representatives
of some of such associations. and making
such examination. as it was able to do in
the Auditors office, IS satisfied that some
of these claims are well founded But, as
above indicated. the inaccuracies in the
tables do not grow out of any mistake in
compiling them from the Auditors report,
neither do they grow out of any mistake on
the part of the Auditor in compiling his
report. They grow out of the failure on
the part of the associations themselves to
properly classify in their reports to the Au-
ditor the different items which the law re-
quires such. reports to contain. For in
stance. in the case of the Indiana Savings
and Investment Company, an item of
81 ,109.93, which, as explained, is a with
drawal of stock, instead of being placed in
the report to the Auditor under the head of
withdrawal of stock, is placed under the
head of miscellaneous disbursements. and
so tabulated in the Auditors report.
I'm the case of the Plymouth Savings and
Loan Association, its report to the Auditor,
under the head of receipts from interest.
shows 1894. 90 only, and under the head of
receipts from premiums, fines and forfeit
ures, respectively, shows nothing, and is so
tabulated in the Auditors report. Under
the head of profit and loss, the latter asso-
ciation shows interest $40, 1S1.7 70. premium
loss account is never contained in the Au-
dltor'S official report.
MISTAKES IN REPORTS.
1t will thus be seen that the tables used
by the commission. compiled as they were
from the Auditors official report. would
naturally, and did, show the expenses in
case of the Indiana S. and I. Comnanv
too great and the earnings in the case of
the Plymouth S. and L.. Association too
small. Mistakes of a similar nature,
though not so easily ascertained, have oc-
Cured n the reports, of other associations
TO the Auditor: that is to say, mistakes in
failing to classify or place under the prop-
er heads the items embraced in the re-
port. On account of these mistakes i'm q
au1noer OF associations the commission
ilnds,, on investigating the Original reports
in the Auditors office, that it would he
lrnpracttcable if not impossible. to compile
correct.
I'm order to do so it would require an in
Vestlgation of the books of a number of the
ASSOR12t1nnS While a. -
referred to were taken from the official re-
PORT OF the proper officer of the State,
justified in relying son that official report
as it did at the time the tables were
made. yet the tables being inaccurate
In point of fact, and on thai account pos
sibly working an injustice to some of the
associations mentioned, and having a. ten
dency to mislead to those who NAV have
to deal with the matter hereafter. it is
proper, We deem, that the commission
should state the fact that the tables are in
accurate.
These tables were appended to the former
report Tor the purpose mainly of showing
the dlfferef!ce in the ratio of expense be-
tween expense-fund and nonexpense-fund
associations, and while the commission rec
ognizes the fact that the tables are mac
curate as prepared, for the reasons above
given, it still insists that the reports of
the Auditor, when consulted, furnish abun-
dant evidence of the fact that the nom
expensc-fund association is by far the less
expensive and more seryiceable to it's stock
holders, and that the law should prevent
NliS dCAitlS llOIl lIIS luuuS pdlu III mon
ey for expenses, but require expenses to be
aid from earnings only.
And while the tables appended to the
former report do not furnish that clear and
accurate evidence that they were originally
intended to furnish. the inaccuracies oc-
curing in them emphasizes the m
dation made in the former report as to re-
curing reports to the Auditor and
the publication thereof in such II way
as that they would be of value. 1t is poor
ly worth while for the State to go to the
expense of publishing statistics concerning
the building and loan associations, unless
they are prepared in such a way as to be
accurate and reliable"