Omaha daily bee., 1896-03-07
BILL PLEASES THE LOCALS
Measure for Controlling Building and Loan
Associations Passed by the Senate.
HEARTILY APPROVED OF IN THIS CITY
Its Provisions VIII Not Adversely Az
feet the Honest Iowa Companies,
but VIII Estcrmipntc Ma
tioDnl Competition.

There was a great deal OF favorable COM
ment upon the streets yesterday OF the
action of the Iowa senate in passing new
law for the regulation Of the building, loan
and savings associations. Local stockholders
have watched the progress of the senate
bill with great interest for the reason that
its provisions are so stringent as to entirely
shut out the so-called national organ-
cations from doing business in the state,
and when they read In The Bee that the
bill had passed the senate without any modi-
fcatlon they were in high feather.
mot SO much on account Of any Increase
OF business that will come to us from cut
ting of the competition of outside com
panies" said one OF them, but for the Sc
curity It will give patrons OF reputable or
ganizations. Local organizations have been
seriously crippled in their efforts to get
new business by the many people who have
suffered serious losses from failures OF rot
ten concerns incorporated under loose laws
In other states Scores OF these organizn-
tions have sprung into existence and are
scarcely known in the statessor even the
towns where they are incorporated and
originated, but they have secured their
chief patronage in western states /, 900 miles
from home. During the hard times they
have gone to the wall in great numbers.
Thousands OF their victims have been To-
Gated in Iowa, and 1t was owing to their
complaints more than to the concerted de-
mands OF reputable local organizations that
the Legislature was led to pass what is
perhaps the most stringent law that has
ever been called into existence to protect
the patrons Of this kind of investments.
There are no responsible local loan and
savings associations that will be unable
TO comply with the conditions of the law,
which requires the deposit with the state
auditor OF cash or unquestionable security
to the amount of 100000 before the com
panv can do business or continue In busl-
ness. The local companies can readily fur
nish this security, for they will only have
to put up that amount Of security once,
while the national companies will have to
add that much more to the already heavy
securities they have given to get the priv
Llege OF doing business In a number OF the
other states. There are very few IL any
companies strong enough to do 1t, and you
can put 1t down as settled fact that as
soon as the senate bill becomes a law there
will not be a national company represented
in Iowa
National companies have always offered
greater inducements to get business than
even the most liberal of the local compa-
nies could afford, and the consequence is
that they have piled up a business that
makes n great showing. This has been used
for all 1t ia worth to induce still greater
business The tendency has been to elimi-
nate all speculative features from local COM
panes, and they have been doing business
only with the more conservative classes
of people. The failures OF nationals have
hit multitudes of people very hard, and
have naturally awakened a degree of dis
trust OF all organizations OF the character
which has hurt us all.
II do not believe the new law will cause
the suspension OF single Iowa company
but 1t will prevent many Of them from doing
what they perhaps have had no business
to try to do, general banking busnesr
The Iowa companies are all in good shape,
and believe they are a unit In favor of
the new law. There is little possibility that
the house will not concur in the senate bill
or that the law will receive the governors
approval. The nationals have made all the
fight they will make"