The San Francisco call., 1896-10-21
Meeting of the League of Mutual
Building and Loan Asso-
Citations.
THE MORTGAGE TAX DISCUSSED
A Proposition to Have the State Pay
the Commissioners Who Super
wise the Association.

The annual meeting OF the California
League of Mutual Building and Loan As
sociations was held yesterday in Assem-
bly, Hall in the Mills building. Frank Otis,
president. presided, and Charles F. Nay
lor, secretary, called the roll of delegates:
The following associations were repre-
sented:
San Francisco Loan, Cosmos Loan, Metropoll-
tan Loan OF Los Angeles, Encinal Building and
Loan of Alameda, San Francisco and Oakland
Mutual Loan, Granite Mutual Building and
Loan, San Francisco Home Mutual, Inter-Nos
Building and Loan, Eintracht Saving and
Building Verein, Peoples Building and Loan,
San Diego Building and Loan, Fairmount
Loan OF San Francisco, Mission ana Home
Loan, Italian-Swiss Mutual Loan, Bor-
rowers' Mutual OF San Francisco. Mutual
Building and Loan of Pasadena. San Jose
Building and Loan, San Luis Building and
Loan, Pacific Coast Loan OF San Francisco,
California Building and Loan OF Alameda,
Santa Clara Building and Loan, Commercial
Building and Loan, Alameda Building and
Loan. Citizens Building and Loan of San
Francisco, Home Security Building and Loan,
Homestead OF Berkeley, Southern California
Loan, Home Mutual of San Francisco.
President Frank Otis presented his an
nual report, very lengthy document.
He drew attention to the reports of the
commissioners of building and loan asso-
Citations, which in the past year had driven
which had entered the State. The asso-
Citations, he said, during the year dis
bursed to members in loans and for can
celed shares $s.471, 497 10. The associa-
tions have a membership OF 80, 0,150, and
were instrumental in building 9343 homes
within this State. The profits on with
drawals by local associations amounted to
36.08 per cent, by the nationals 1852 per
II ~ o
cent, while the cost to borrowers in locals
has been 1886 per cent, nationals lilo
per cent and in cooperative banks 10. II per
cent. The associations paid last year for
taxes about $230,000 on their mortgage
loans.
He dwelt at length on the sub ject
whether it would be wise for the associa-
tions to take part in politics. He took
occasion to declare that on the financial
proposition IL was eminently proper and,
indeed. Imperative that the associations
should place themselves on record. They
sought to do business on business princi-
pies. and in carrying out this policy
it was necessary that they should
financial honor and honesty of the
country. He cited numerous exam
pies to prove that the prosperity of the
world was practically confined TO such
countries as had gold standard, the re-
verse being true OF those laboring under
the disadvantage of a silver monetary
system. He had every confidence, how
ever, that the good sense of the American
people, as shown at the coming election,
would forever put at rest the anarchistic
theories and schemes OF the unthinking
advocates OF the proposed new order OF
things.
He then said that all loans of building
and loan associations to their member
were made under the present monetary
standard, and asked if it would not be un-
fair for borrowers to pay back in depre-
ciated currency. He added "The prop
osition that full and unlimited legal ten
der will relieve the debtor Is clearly
confession of it's iniquity, for, by that very
relief, it will rob every creditor, no matter
how small may be the debt due TO him."
He closed by arguing the fostering OF
building and loan associations.
Secretary Naylor called for the indorse-
ment of the following resolutions that
were adopted at the convention of the
United States League of Building and
Loan Associations on the currency ques-
tion held in Philadelphia:
First-That it is the sense of this meeting
that the interests OF all shareholders of build
ing and loan associations in the United States
demand tnat the present standard OF values
upon which our monetary system has been
based since the resump ption of specie payments
in 1879 shall remain inviolste.
Second-That we believe that the in terests of
every class in the community, aud especially
: those OF the great wage-earning class, impera-
lively demand that every dollar in circulation,
whether coin or paper, shall be equal in pur-
chasing power, and therefore equal in value to
every other.
Thlrd-That patriotism demands that the
dollar bearing the mint mark of the United
States shall be equal to the dollar OF the most
advanced nations and entitled 10 the full faith
and credit all over the world, and to that end
II must be maintained free from all suspicion
OF debasement or repudiation.
The resolutions were Endorsed by
unanimous vote.
A. Sbarboro read a paper on Estate
Supervision, +" in whicn he said that the
building and loan societies had reached
such magnitude that it was deemed ad-
visa bic by the league to have State Com
mission appointed to inspect aud super
wise the societies. He, while speaking
favorably cf the supervision, thought the
tax on the societies to maintain the Com
missioners is very heavy, and offered
resolution TO the effect that the Legisla-
Iure continue the Commissioners and pay
them from the treasury OF the State.
0. K. Cushing read a paper on the
"a Adjustment of Premiums" He said
that premiums are not a fundamental
principle of the associations, and that
they are not feature OF mutuality, be-
cause at one meeting a loan may be at a
low one. He urged the abolition of this
feature.
George G. Wright read an interesting
paper on Mortgage Taxation He re-
ferred 70 the introduction of the system,
and stated that be had at first been in
favor of the proposed amendment reliev-
ing the lender of the necessity OF paying
the mortgage tax, but further investlga-
ton had caused him to change his mind
At the afternoon session there was dis
cussion on the mortgage tax. One men,
Der was of the opinion that there was no
good reason for the abolition of the mort
gage tax.
Mr.. Sbarboro said it was wrong con-
ception of the matter 10 hold that the
mortgage tax was the cause OF reduction
of interest on deposits.
D. Henderson, banker of Santa Clara
County, said a formidable obstacle would
be presented by the repeal OF the mort
gage tax. It would not, in his opinion,
reduce taxation. The repeal, he thought,
would result in double taxation and be
great hardship on the borrowers, who are
generally people of very limited means.
= hot If the a.