Omaha daily bee., 1896-03-08
CO-OPERATNEHuME BUILDING
nd
The Value of stateh Regulation Demon
strated IN Nebraska.
IOWA WRESTLING WITH THE PROBLEM
synopsis of n Mchstre Recommended
by n COMMITTEES bk the LeeisIn-
ture-LocnIi pand General
Associations Notes.

" AohNiy VhhHh w hhp oliiNN itNNtl VI
the statutes. They frequently permit danger
Gus latitude rather than provoke the critic
ism Of %oficlous supervision. No matter how
generously they c~onstrue the law or how
far they permit the managers Of a public
concern to go before an official check is
ordered. the charge of %oficious meddling in
its affairs is sure to be made. This criticism
serves the double purpose of venting the
wrath of the fellows brought to book and
enables them to shift the odium of failure
from their own shoulders.
An instance of the tendency to ~criticise
officials for performing their duties and the
subsequent jurisdiction of their acts is in
structive and points a moral. At the session
of the legislature of 1891 a law was passed
amending the homestead or building associa-
tion act of 1873. The law placed building and
loan associations under the control Of the
State Banking board. Local and foreign as
sociations were required to make annual re-
ports to the board. Certain fundamental
principles were required to be embodied In
the constitution and bylaws of every associa-
ton seeking business in Nebraska. Constitu-
tions and bylaws we're to be approved by the
board and a certificate to that effect was
made necessary before any association, home
or foreign, could legally transact business in
the state.
All local associations promptly complied
with the reasonable provisions Of the law.
But associations incorporated in other states
| paid no attention to II. Their annual re-
ports were made regardless Of the laws re-
quirements and their constitutions and by
laws were clearly v~iolative of the plain pro-
visions of the statute. For a year or more
no attempt was made to compel outside
associations to do that which home institu-
tions were required to do. Supporters of the
latter naturally protested against this illegal
nv, t~, . 49,, A-I asa Al.. 4 ,-., a ~
favors were to be granted they were entitled
to a share. They asked for a fair field and
no favors and rightly urged that competitors
from other states be made subject to the
state law.
After nearly two years prodding the State
Banking board decided to act. Foreign as
sociations were ordered to comply with the
law. Failing to do so within a limited period
the board, at a meeting in February, 1898,
refused to grant them certificates to do busl-
ness in the state.
This action of the board provoked sharp
criticism from interested parties. The mem
bers of the board were accused of shutting
out foreign capital and preventing the people
| of the state from securing loans on what was
falsely said to be Questionable terms 1t
was even charged that lodal associations were
Jealous of foreign competition and that they
| influenced the board in doing what the law
required. The locals plead guilty to the last
charge. but other accusations were shown to
be .groundless. for the reason that the STATE
was men to all associations comnlving with
| the Inv. aH;8I
The wisdom NJ nbe Notion NJ tho st,te
Ranging hoard three wears 400 has hosn re-
neatedJy demonstr, ted prior to that tive I,
Is estimated foreipIn 3 decorations securod
s2OO oOO in Nahr,sLa un,or faIsa nr,tanva,
" NnbaoLinr ,ha,r nnaratinn, "a ,en.nsu.
axcInding them tho hoard Rae saved The nos,
H. - tha s,.,a .anr ~ Kans,nas -, 49,.
va nrant;oaii,, nrotaetoSLth a -stata trou, an
Ana nciaI snandais snchsas Iowa Ilinois and
Minnesota exnerienced within recent tinas
TInconsciousiv tho hoard did more II nIacad
tho nmci st,mn of annrnvai IN Tho nrino,
Nc. ~ hnma thrift md ipdnstry and restoraa
nuh,ic canedance in Nahra s.a howe hniI1ins
inst;tn+ions orsaniyad and n,naaad bv lii
IONS of tha state ~ was an assnra, that
state srnnrvision would snnervise '""'
REGtII,ATIoN IN IoWA
Tho d.n,and for q iaa, ra,riotnn ,u,,a;,,
and ioan associat.cn. NV iosa d is n ena ou LILLE
the ,eeirl,tnre is mot ,iLaiv 70 isnore nh
foo, tbat ono association svocesssniI,, r,rotnd
citizens ~ tho state mt ~ conn mn ana iot.
hnt exc ooo of do,hts,, ssSats ~ sbon, sor -
and in addstion smcceeded in eImdin. nrn'
isbn,ant fcr swirdIina randars tba anae ~
of an adanuata low an i,nnera tive naoassitn
Warious h;iIa have has, irtrod,,oaa ~ 49,
tho emergenov and a Iuhr;coted ,obhu 10
an hana endsa vorina - d;uida tho ,rT;ong, 20
stata ra.,Iatior hn ing oo,sIc,jna %
uraa committees NJ tho acconbIy ba,
tatsn ~ Sont toa.nron 20 -. Eli naS
Snoad ~ ,noor,ar Ca r. Nv LIS nj. -
ruo ~ go ~ ,,h,oh ~ y" m
w. .ne pa''"eT mnon ~ 'omnii'.ee
leCoonnnninenus' III aeoiaies .hat an
Iorpoialiohs lormeu u iehu nIoney 10 mem
pel' upon seeui.ly II a ~ hho"n d puiu,
ing anu ,oah associaliohs, ina they shai
pe iorhleu ny not iess' .hah hVe persons;
h taaS tnUse lo dnmas Tn low ,ho IN IOWA snaii
p9 Known as uonestic anu tnose ASSOCIATIONS
OF other states DONG business there snail be
known as foreign ASSOCIATIONS. foreign as
soclat'ons snail pay 10 the AUDITOR the foliow-
ing ices: FOR ming appllcatlon TO DO busi-
ness, 800; for each certificate OF authority to
40 business and zach annual renewal thereof,
$50; for ming each annual statement of the
assets of the association amounting to $4,000,
SO; from 10000 to 100000, 80; from 500 900
to $3.50. 600, $40; from $3.50 900 to $500, 900,
$40; from $500 900 to $1,000, 900. $40; and
more than 1000, 900, $50. Domestic com
panies shall pay $25 for each certificate
and $40 for filing each annual statement,
but if the association does business in one
town only the fees shall be one-ffth of said
amounts. When laws Of other states dis
criminate against lowe associations, then the
same determinations shall be applied by the
auditor to associations Of those states doing
business In Iowa. Foreign companies must
comply with the provisions of this act within
sixty days.
Foreign building and loan associations Inv