Omaha daily bee., 1896-11-29

Il
outset paid Withdrawals with reasonable
| prorhpttude, but toward the close OF the
| campaign even these were Obliged 10 restrict
Withdrawals to one-haf the monthly re-
ceipts. This wise provision Of tho state
law proved exceedingly valuable in tho
emergency, as It's enforcement carried many
withdrawing applications beyond the scare
period and enabled associations 70 meet
loans contracted for. Now with election
fears bauished applications to Withdrawals
are allowed to lapse and feeling OF buoy
ancy pcrvadcs association offices and officers.
AN IMPORTANT DECISION.
Tho supreme court OF Illinois rendered
an important decision, involving the rights
OF an association doing business In Illinois,
but Incorporated In Missouri Some time
ago the Missouri Savings and Loan company
brought suit In the circuit court OF Madison
county. Illinois, to forccloSo two mortgages
agEregating $4,000. A decree was obtained
for this sum- plus accrued assessments. dues
and fines An appeal was taken the plea
being that the association was guilty OF
usury, and the supreme court now revcrses
the lower courts decision and holds that
the decree should have been given only for
the sum actually borrowed, with legal in
terest.
The court finds that tho Missouri company
sold paid-up stock, which entitled the holder
thereof to participate in all the profits OF
the company and to receive dividend OF
6 per cent per annum on the amount payable
thcrefrom, payable semi-annually out OF the
profits accruing to such stock, and paia-up
participating stock which pays dlvi-
dend of per cent, was also issued, and the
court says corporation which has author
ity to derive its revenue by these means
Is building association only in name-it
is merely money-lcnding dividend paying
corporation. The court says the scope OF
the Missouri Saving and Loan company Is
not authorized by the statute of Illinois, and
1t does not come under the true measfng
OF building associations, but through 1t cap
italsts may invest thousands of dollars and
draw 13 or II per cent on the money In
vested, as did the association in the present
case, and such a plan of realizing funds
by a building association, the court says is
in no way recognized by Illinois laws.
Many authorities are cited sustaining tho
courts rulings in this case and the court
says the Missouri association should have
been given a decree only for the sum
actually borrowed, with legal interest
AS all or nearly all building associations
in Illinois issue paid-up stock this ruling
is of deep interest to capitalists and bor-
rowers.
PAYING MATURED SHARES.
The plan recently drawn up by Seymour
Dexter of Elmira, n. Y. which sets forth
the best method Of paying matured stock in
building and loan associations, is well liked
by many officials of such organizations The
plan. as suggested by Mr. Dexter, is as
follows:
When each free share reaches its matured
Ndlue Ine payment OF tne uueS thereon Snall
cease and the holder thereof shall be paid
out of the funds of the association the ma
turcd value thereof, with such rate of in
tercst as shall be determined by the by
laws from the time the board of directors
shall declare such shares to have matured
until paid. but subject nevertheless. to the
following conditions and provisions namely,
that when the association shall be indebted
upon matured shares all receipts into the
treasury of the association shall be divided
as follows:
One-third for the payment of matured
shares, one-third to borrowers and one-third
to Withdrawals of non-matured shares but
in the event there shall not be a demand for
the one-third set aside for borrowers or for
the full amount thereof, any remainder left
after all the demands for loans are satisfied
shall be applicable TO the payment of ma
tured shares and in the same manner il
there is no demand for the payment OF with
drawals OF non-matured shares or sufficient
TO absorb said one-third of the receipts any
remainder shall be applicable to the payment
of matured shares. The holders of matured
shares shall file their notice of desire for
payment of the same and they shall be paid
in the order of the filing of such notices
ASSOCIATION NOTES.
The Kentucky statute requiring foreign
building and loan associations to pay 2
per cent of their annual gross receipts into
the state treasury has been sustained by the
state supreme court.
II,
related by the Detroit Free Press, ought to
result in the passage of law squelching
speculative concerns, doing a lootng busi-
ness under the masking Of building and loan
associations
The first annual report of the condition of
building and lean associations in Missouri
shows 2SS associations, with assets aggregat-
ing S26,352, 954. The total membership is
given at 5S,O24; number of shares in force,
2S9 663; number Of shares borrowed on, 1O9,-
mn, lar 20 h,,rr
port says: with few exceptions, the as
sociationS are solvent, most OF them are
prosperous. many of them are highly sue
cessful. When this country again enters
upon an era of prosperity and again en-
joys the blessings of confidence and pro-
grcss, building associations will be infused -
with new life; their business will be in
creased many fold; they will build homes,
encourage thrift and scatter blessings far
and wide"
The superior court of Indiana holds that
building and loan associations are exempt
from taxation on their stock in that state.
As in Nebraska, individual members alone
are taxable
The right Of the banking department of
New York state to compel building and
loan associations operating under the law
OF 1851, Of 1887 and OF 1892, to submit for the
approval of the superintendent any and all
amendments to their articles OF incorpCra-
tion has been questioned by a number of
association officials and attorneys. Since
the enactment Of the law of 1894 the banking
department has sought to exercise a strict
over the matter of bylaws and
MT infrequently the associations desiring to
change their constitution have met with
opposition from this department
The collapse of the Granite State Building
and Loan association of New HAMPSHIRE
caught the people of Greeley. Colo. for from
$4,000 to 1000 People of limited means
who send their savings away from home for
investment generally get the worst of the
deal
SOME RESOURCES OF FAR ALASKA.
Gold Mines and Seal Herds Make tho
Eerrifarx i.I, IN.