The Wichita daily eagle., 1896-12-16
INDIANA'S LATEST BOOM.

The indianapolis papers have, of late
years, commented literally, and not al
ways favorably, on the Wichita real es-
tate boom. Whether justified or not, it
may be admitted that they have done
so advisedly. None could know better
what they were talking about, for had
not indianapolis passed through just
such boom on a much larger scale ?
In fairness, though, they might have
treated ours as a boomlet, for the loss
entailed was as dimes to dollars COM
pared to the Hoozier craze of 1873.
Good form, if not just common mod
esty, however, might have suggested a
discreet silence on the part of those
papers. Occupying permanent quar-
ters in the proverbial glass house, their
stone throwing is fraught with great
danger, especially at this particular
time. Just now new danger menaces
the peace and security of the staid old
''city of concentric circles" Under
late act of the legislature commission
was appointed to look into the condition
of her building and loan associations.
The first report of this commission en-
braces not more than half dozen of
these associations, yet it makes disclos-
ures that set every holder of shares in
her 140 associations to breathing short,
and brings down upon them applica-
tons for withdrawal which they cannot
hope TO meet in two or three years, and,
in some cases, longer than that. Under
this state of things every shareholder is
on a keen scent for facts and figures,
and the disclosures have caused a verit-
able panic among them The commits
sion reports one association whose ex-
penditures last year were over $4,000
and the gross receipts less than $1,000.
Others show similar condition. vary
holders.
1t has been the custom with most of
these associations 10 pay exorbitant sal
aries TO their officials and. in some cases
TO even pay their directors handsomely
for their time. Such expenses, of course
cannot be paid out of the legitimate
profits of the building and loan associa-
tons. The weekly dues of sharebold-
ers furnish the cash To meet these sex
penses" and thus they are held up to the
extent of all excess charges.
Inquiry also reveals that many bad
loans have been made. The security in
many QoSec * iDaJenuo.o o,1 ,bo ,-,-
cling expenses hotel bills and fees to at
torneys and abstractors have consumed
the interest in advance for months TO
come. But the worst feature of this
branch Of Indiana's industries is that
men without credit or standing have
used it as medium for raising money
for private use. Many of these "associ-
ations" might better he named schemes
for raising money, with building and
loan attachment IL is said that parties
owning vacant lots, and having no
money TO invest in improvements. have
organized these building and loan asso-
ciations. opened their books for sub
Scrlptions and soon gathered funds suf-
ncient 10 build houses and. incidentally,
10 provide for themselves a comfortable
Income in the shape of salary TO officers
and managers. That such confidence
game could be worked TO the extent it
has been in Indiana is not compliment
AIRY to the business sagacity OF her peo-
pie The truthfulness OF these state
ments cannot be doubted. as IL Is CLEAN
ed mostly from the Indianapolis papers.
Further developments viii show the
extent Of this crooked business. but in
the interim the newspaper space used
in these exposures viii not be taken up
with lying statements about Kansas.