Evening star., 1897-07-29
T0SEE The ST. CLAIR
Outing for Delegates 81 ! to Building As
sociation League Convention.
DISCUSS FINANCE II THE MORNING
Views as to What an Association
GO
Owes It's Members.
MEMBERS AT; LEGISLATURES

a1.E 81
MEMBERS At LEGISLATURES
DETROIT, Mich, July .29-Business was
resumed promptly at 10 O'Clock this morn
ing by the United States League of Build
ing and Loan Associations, with the in
tention Of making the days session con-
tinuous.
The object was to complete all business
by 3 p.m., so that the delegates could take
steamer at that hour for the St. Clair
mats, where fish supper was to be served
as the final feature of the convention pro-
gram. fhere was full attendance at
the second days session, and the reading
of addresses proceeded rapidly with no
delay and with very little discussion.
MIR. EldredEe's Address,
In an address entitled "a Few Notes on
the Management of Cooperative Rank"
d. Eldredge said:
The authority to make loans on the part
OF the secretary Of a cooperative bank
should be exercised with extraordinary
care ana great wisdom Affairs in this line
ought to be so conducted that If a Question
OF proposed loan reach the directors that
would be presumptive evidence that It has
passed the ordeal of the secretary's scru-
eAAJ eio Lie COuullltee examination. A
secretary. If he is good manager. will
only bring before the directors for their
action matters of superior Importance set
ting all others himself, but he should in
no case go beyond the limits permitted by
his directors The speaker gave his ideas
as to the routine management of an asso-
clatlon by its secretary; spoke of the bank
ing OF the funds. the discharge Of mort
gage, renewal Of Insurance. rental of prop-
erty, payment of moneys on withdrawals
and matured shares and many other ext
genctes In connection with the affairs of a
cooperative bank.
Paper by A. j. Duncan.
THE Rights and Duties of Building and
Loan Association Stockholders and Their
| Relation to Creditors was discussed In a
paper by A. ]. Duncan of Columbus, dep
uty inspector of Ohio building associations
and brother-in-law of President McKin-
| ley.
He said that the purpose of his address
was to stimulate among those interested
| in the maintenance of the original nrin
ciples upon which building and loan asso-
Citations are based inquiries as to present
rights and duties of members and their re-
lation to creditors. Such increased inter-
est, he asserted, with its ACCOMPANYING
broader understanding of rights, privileges
and duties, would be the inspiration of
more favorable legislation and the best de-
| Tense against inimical laws. "At no time"
said the speaker, has the public demanded
more stringent legislation and protection
against visionary and dishonest schemes
under the guise of building and loan asso-
Citations than at present.
Mr.. Duncan commended the simple con-
| tract provisions of the original Greenwich
building and Loan Society, organized in
lSoo as true test and reasonable guide
tor building associations. and one which
the courts OF England and America are dis
posed to recognize, in interpreting subse-
quent legislation and decisions on these
subjects.
Right of Members to Borrow
The right OF a member to borrow upon
his stock or receive an advanced loan upon
his shares might be called the corner stone
OF the system, and any departure from
this Fundamental principle was destructive
| of the whole scheme. The decisions Of our
courts were uniform upon the point that
the loan is an advanced payment upon the
amount of stock which the member would
receive when the scheme is perfected, and
to the payment of which stock the men,
Der is bound.
The general rule of allowing directors to
determine the amount to be paid to with
drawing member had been a stumbling
block to the associations. The Ohio law,
said the speaker, requires an annual dis
tribution to be placed to the credit of mem
bers accounts, thus placing the associa-
tions upon the same basis in this respect
as other financial institutions
Owing to the peculiar nature Of the build
ing association business, receivers had to
be allowed great discretion in settling
claims In cases of liquidation or insolvency,
and the line of action in such cases should
be modified according to circumstances and
the statutes of the various states. In con-
c!usion Mr.. Duncan urged stricter COM
pnance with the foundation principles of
building associations and closer observ-
ance OF state statutes relative thereto.
Influence of State Leagues.
"The Service and Influence of Our State
ca1 Tor, C1o,o
Of Philadelphia He spoke particularly of
the state leagues influence upon legisla-
tion affecting building associations, and
gave 1t as his opinion that every state
should have specific building and loan
law, and all societies be Incorporated un-
der it.
"Our aim in Philadelphia" he said, has
been to keep the associations purely, even
severely. local. that we might build up
system in which the local committees
would become interested, and thereby less
en- the possibility of failure. either through
defalcatfons or unwise investments"
He advocated the sending of at least one
frst-class building and loan man to every
session OF the different legislatures. Or
ganization by building associations for
legislative purposes was also suggested
Once judicious building and loan laws
are placed upon the statute books" con-
should see to it that no speculative hand
be allowed to alter or revise them for gain
or any Interior purpose"
ApportiOnment of Prohts.
Albert Barnes Of Decatur, ILL.,. treasurer
of the Illinois League. read a paper on
"Apportionment of Profits" He condemned
the practice of apportioning at any time
more profits than had been actually earned,
and showed that unless an association had
an ample contingent or reserve fund, the
shares in force. when loss is met. must
inevitably bear the, burden, not only of
their own proportion of the loss. but also
the additional burden of that part of the
loss which should be charged to maturing
shares.
Mr.. Barnes cautioned secretaries not to
hasten the time for maturing of a series,
on account Of importRnities of members
or for any reason, no matter what the
temptation to be able 20 announce quick
maturity of sharesss
Charged With1the tGullis Murder.
LYNN. Mass. JHiy 29.-Alfred C. Will
liams of Lynnfield Center was arrested to-
day on suspicion of being responsible for
the death Of John Guilis, a farm hand,
whose body was burned in his shanty on
the Phillips farm at Lynnfield, Wednesday