The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-11-23
BANK COMMISSIONER
GILKESON'S REPORT
Some Interesting Remarks Coucernipg
Loan Associations.
INSTITUTIONS IN GOOD CONDITION
1t is Recommended That building
and Loan Associations be Required
TO Register in the Department the
Names Of Officers. . r Oreign Institu.
tiOns should be Placed Under Re.
strictiOns.

Harrisburg. Pa, Nov. 22.-The first
annual report of the commissioner Oh
banking on the building and loan as
sociations of the state is in the hanus
of the printer and will be ready for
distribution about January l. The re-
port will show the assets, liabilities, re-
ceipts. disbursements, number of MEM
bers, both borrowing and non-borrow-
ing, number of shares in force at the
end of the year. admission fees re-
ceived, and number of foreclosures as
per reports to this department.. made
by the l,13l of the associations char-
tered under the laws of this state. The
assets amount to 500, 5l9 $3.50, includ-
ing loans of $90.15l, 525.23 and other
items, such as cash on hand and In
bank. real estate, dues and miscellan-
eous assets. The liabilities include an
item of sS4.694, ,993.5S, representing
amounts due shareholders and another
item of over 100000 earnings divid-
ed and undivided, The disbursements
amounted to s44,5O5. .361. .O3 for real estate
and stock loans, Withdrawals, salaries
etc. The whole number of associations
reporting is 1,13l borrowing members,
~, IA: non-borrowing members, lI4,l
number of shares in force at the end OF
the year, 1,796,Sll; admission fees re-
Ceived during the year. $llO,2O3.1l; num-
Der of foreclosures during the year,
S57.
For the first time in the history of
the state this information has been
collected. Commissioner GilkesOn says
that in his Judgment the financial con-
dton of the building and loan associa-
tions of the state Is sound. He thinks
the purely local building and loan as
sociation Is productive Of much good.
The proper proportion between bor-
rowing and borrowing members Is
maintained. Sixteen associations were
placed in the hands of receivers by
direction of the department.. several of
these were subsequently discharged.
ASSOCIATIONS SHOULD REGIS
TER.
Colonel GilkeSon recommends that oil
building and loan associations be re-
quired to register in the department the
name of the association and names
and addresses of the officers: that when
an association expires an affidavit
should be filed in the department; that
a printed copy of the annual statement
should also be filed; that the treasurer
should give a bond and deposit all
moneys of the assOcia tion in the name
of the same: that foreign building and
loan associations be required to pay
license fee in addition to the annual
tax; prohibiting the investment of
large sums of money in one mortgage
unless 1t be bona fide loan to home
builder or temporary investment of
otherwise idle money. He deprecates
the loaning of money by associa tiOns
upon such security as business blocks
or hall properties and recommends that
when building and loan associations
close out their business their charter
shall be surrendered and the depart
ment be given official knowledge there
of; permitting the merger Of one build
ing and loan association with another,
and providing that matured stock shall
be preferred stock, and allowing such
stock to draw regular stated dividends
until paid Off, and providing for the
retirement of the same. There is also
a report on the foreign building and
loan associations doing business in this
state. The statistical showing Of these
associations Is as follows:
Number of shares in force in Penn
sylvania, 262 1856: loans on real estate,
1885,, ,55525 loans on the stock of such
associations. S67.34S69: value or real
estate owned, 67,4S7.65.
Colonel Gilkeson reports what he has
previously said concerning these asso-
Citations, which Is not an endorsement
of their methods. He thinks if the leg
1slature authorizes the foreign assOcia-
tions to do business in Pennsylvania,
then there should be some method of
taxation. otherwise heavy license fees
should be imposed and restrictions
placed upon foreign associations so as
to prevent them from doing business In
Pennsylvania.