The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-30
B. AND L. ASSOCIATIONS
PAPERS READ AT LAST SESSION OF
THE UNITED STATES LEAGUE.
Omaha Chosen as Next Place of Meet
ing-L. W. SanbOrn. of GaIeSburg,
Ill, Elected President.

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 object
of completing business by p. m, so the
delegates could take the steamer at that
hour for the st. Clair flats. where a fish
supper was to be served as the final feature
OF the convention programme. There was
full attendance at the second days ses-
sion and the reading of addresses proceeded
rapidly with no delay and with very little
discussion. The committee on resolutions
reported adversely on a proposition to leave
the fixing of the date of the annual meet
ing with the executive committee. The
proposition originated in the Louisiana As
ISOLATION, which desired to get the annual
meeting for New Orleans. The present date
for holding the convention is unsuitable for
that city for climatic reasons The adverse
report was sustained by the convention.
On recommendation of the resolutions COM
mittee vote of thanks to Hon. Fred c.
Bader, of Ohio, was adopted for his serv-
ices in behalf of building associations in
fighting the stamp tax in the last Con-
gress. Omaha was selected by reclamation
for the convention of 1898, after Cincinnati
feeble efforts to secure it.
The following officers We're elected: Pres
ident, Lake w Sanborn, Galesburg, ILL.,;
first vice president, William L. Bloomer,
Buffalo, N. Y; second vice presi-
dent, Timothy r. Foster, Vicks-
burg, Miss; third vice president,
Thomas j. Fitzmorris, Omaha, Neb. treas
urer, William c. Sheppard, Grand Rapids
Mich. secretary, Herman F. Cellarius, Gin
Glnnau; assistant secretary, George f.
Ksostmayer, New Orleans. The members
or the executive committee were then elect
ed, one member from each State.
At the opening of the session D. e. Ell
drldge OF Boston, gave few notes on the
management of a cooperative bank. The
authority to make loans on the part of the
secretary of a cooperative bank, he said.
should be exercised with extraordinary care
ana great wisdom. Affairs in this line ought
10 be conducted so that if a question of
proposed loan reaches the directors, that
II VIII be preSumptiVe evidence that it has
passed the ordeal of the secretary's scru-
Ilhy ana the committees examination. A
secretary, If he is a good manager, will
only bring before the directors for their
act1on matters Of superior Importance. set
tllng all others himself but he should in
no case go beyond the limits permitted by
ms directors. The speaker gave his ideas
as TO the routine management of an asso-
cldton by It's secretary, banking of the
ae 10 lI.e dlscharge of mortgages, renewal
% insurance, rental of property, payment
OF money on Withdrawals and matured
snareS and many other eXigencies in con-
necJon with affairs of a cooperative bank
Ihe rights and duties of building and
Ioan association stockholders and their re-
lauons to creditors was discussed in a
paper by A. j. Duncan, of Columbus den
uty inspector of Ohio building as
soclations, and a brother-in-law of Presi-
cent Mckinley. He said that the purpose
interested in the maintenance of the orig
NAL principles upon which building and
Ioan associations are based inquiries as to
present rights and duties of members and
tnelr reIatlon TO creditors. Such increased
interest he asserted, with it's ACCOMMODATING
broader understanding of rights privileges
ana duties, would be the inspiration of more
favorable legislation and the best defense
against inimical laws. AT no time" said
the speaker has the public demanded
agalnst visionary ana dishonest schemes
under the guise of building and loan asso-
clatlonS than at present"
Mr. Duncan commended the simple con-
tract provisions of the original Greenwich
building and Loan Society. organized in
foO9' as true test and reasonable guide
Tor pudding associations which the courts
or england and America are disposed to
recognize in Interpreting subsequent leeis-
Iation and decisions on these subjects The
I!snI OF member to borrow upon his
stock, or receive an advance loan upon his
snares, might be called the cornerstone 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
payment
amount OF stock which the member would
receive when the scheme is perfected. and to
the payment of which stock the member 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
trlhution to be placed to the credit of mem
bers' accounts. thus placing the associa-
lions upon the same basis in this respect
as other financial institutions Owing to
the peculiar nature of the building assOcia-
uon business, receivers had to be allowed
great discretion in settling claims in cases
OF Incubation or insolvency, and the line
or action in such cases should be modified
according. to circumstances and the statutes
OF the various states. In conclusion. Mr.
Duncan urged stricter compliance with the
foundation principles of building asSoca-
ions and closer observance of State stat
uteS relative thereto.
The Service and Influences of Our State
Leagues" was discussed by the Hon James
CIarency' Of Philadelphia. He spoke partic-
ularly of the State Leagues influence upon
legislation affecting building associations
and gave it as his opinion that every State
should have specific building and loan
law, and all societies be incorporated under
1t. our aim in Philadelphia" he said, has
been to keep the associations purely, even
severely, local, that we might build UP a
system in which the local committee would
be interested in and thereby lessen the pos
sibility OF failure, either through defalca-
tons or unWlse Investments" He advocated
the election of at least one firSt-class build
ing and loan man to every session of the
different Legislatures. Organization by
building associations for legislative pur-
poses was also suggested. 'Once judicious
building and loan laws are placed upon
the statute books" concluded he 1.-THE
State Leagues could see to it that no spec
ulative hand be allowed to alter or revise
them for gain or any Interior purpose"
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 a 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 opportunities of men,
bers or for any reason, no matter what the
temptation to be able to announce quick
maturity of shares"
Charles Kolb. of Philadelphia, who was
down for paper on The Interest Reduc-
ton Plan" had prepared no paper but
made a few remarks upon the subject
"A Good Title was discussed by Samuel
S. Gleason, Of Watertown, Mass, after the
election of officers tho convention adjourned
sine die.
Movements of Steamers.
gTDr Tpf M