Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1897-10-22

THG ARGOS
Senator Case closed the discussion.
Greetings were read from the United
States League of associations, q let
ter of regret from State Auditor Gore
and other communications were SUBJ
mitted. In the afternoon the paper
Of j. n. c. Shumway, of Taylorville,
on 1.-THE Present Building and Loan
Law" was discussed BY Albert
Barnes, of Decatur, and Messrs.
Schrader. Ross and Stern, of Chi
cago. The main point of discussion
was on the authority of boards Of
directors to vote themselves salaries.
or whether under the law only the
secretary and treasurer were to be
salaried. There was also an ami
mated discussion on the section Of
amended law providing for the crea-
'tion of q contingent fund or not
less than l nor more than 10
per cent OF the dues capital
amount Of the dues accrued a.
each series Of stock by the associs-
tions to provide for losses which
may be sustained. 1t was held on
the one ha I'd that the idea favored
stability, and on this account it was
sustained, while on the other it was
contended that an association being
q copartnership. when q members
stock natures and he withdraws he
should be no longer responsible for
future losses. This was the view Of
Mr.. Sohrader, Of Chicago, but Mr..
Stern, Of the sameicity. looked upon
the small assessment of the profits
placed in q contingent fund as an
insurance against loss. 1t creates q
feeling Of reward just as does the
fire insurance policy to the man who
has been paying for 1t for years
without occasion to call for Its face.
Besides this Is the necessity of q
loss on loan that might have been
regarded as amply secure. Thus
property may depreciate and the
property holders of today would be
compelled to sustain loss that they
were not responsible for. He believ-
ed, therefore, that it was but Just
that the stakeholder whose stock has
matured, sustain proportion Of the
burden. The minimum of the con-
tingent fund assessment should be
larger.
The Trip on the River.
During the afternoon the Lone
Star with barge took the del egates
for ride on the river. going down
to the mouth of the Hennepin and up
through the locks. and after a little
run down as far a. Horse island, the
party returned to Rock Island at
O'Clock. Bleuer's Mandolin orches-
ira furnished music, and refresh
ments provided by the local commit
tee and served enroute added to the
comfort of the exoursiouists.
The league held its evening ses-
sion at the Office of E. II. Guyer in
Mitchell & Lynde building. A paper
was read by the secretary which had
been prepared BY c. 8. Wiley. Of
Charleston. on Estate Inspection and
Its Benefits to the Association Mem.
bers and the Public" The paper
was an argument In opposition to
state inspection % being insufficient
and affording no benefit to the asso-
Citations or stoc kholders. Fillmore
Willard, of Peoris, and w. r. Smith.
Of Chicago, led the discussion.
While instances we're related where
in inspection had been indifferent
and superficial, the majority of
those who spoke looked upon It as
beneficial, If the examiners were
competent accountants and under
stood their business.
A paper written by Hon. L. z
Emmons, Of Quincy, on General
Powers Of Building and Loan Asso-
citation" was read by the secretary and
G. W. Carr, of Chicago. submitted q
report on permanent plans, favoring
the amendment of the laws so that
associations may organise on . per-
manent basis-giving associations
the right to issue stock which may
not be Withdrawn except on the or
der Of the directors. enabling hold.
ers Of installment stock to convert
their stock into permanent stocks,
ETC., and also giving borrowers the
right to liquidate their loans before
the stock reaches maturity. in
amounts of 500 and its multiple
The changes proposed we're Of such 9
character that Mr.. Carr thought IL
would be best to revise the building
association laws instead Of seeking &
amend them.
After q brief, but lively discussion
the report was, on motion of n. r.
Baldwin, Of Quincy, laid over fol
consideration at the next meeting Of
the league. Mr.. Carr then secured
permission to address the league liz
Explanation Of the subjects included
In the report. There were numer
Gus Interruptions, however. ant
points Of order raised, and he finally
withdrew. H. N. Roseuthsl. OF Chi
cago. spoke Of the prosperous condi
ton of the associations Of the state,
whose business had increased 20 pei
cent in the past yesr, an impression
many had failed to grasp 80 the