The sun., 1897-02-28
THE LOAN ASSOCIATIONS.
SUPT. KILBURN ASKS FOR MORE
POWER IN DEALING WITH THEM.
Tho Local Associations, re says. Have
Doae Mach Good and Deserve shs Hest
Encouragement. hut the "Nationais " Are
Prom ising More than They Can Perform.

Encouragement. but the "Nstionals -" Are
Pro"'sass More IMAM fheS Can Perform.
ALBANY, Feb. 27.-An interesting report on
the operations Of the cooperative savings and
loan associations for the year 1896 was made
public to-day by Superintendent Frederick d.
Kilburn Of tho State Banking Department
There are 36s savings and loan associations and
2S building lot associations operating in this
State; Of tho latter q are In Monroe county
or the loan associations there arc So in Eric
county. 80 in Kings. ~ in Monroe, and s5 in
New York. In his recommendations covering
the supervision Of the building and loan associa
tions, Superintendent Kilburn says:
81 think some action ought to be taken which
will give the Superintcn dc MT Of this department
adequate power I'm dealing with the sociations,
and which win make Il impossible for them 70
incur the large expenses In which many of them
indulge, and which will insure to as great de-
gree as possible the protection of their members
| I respectfully suggest, therefore, that the law
be 30 amended as to require that the liability Of
any association to It's members can never be less
| than tho amount paid by them In dues and that
whenever appears that the assets OF an associa-
ton are insufficient to pay this liability It shall
| be deemed insolvent and the Superintendent OF
| Banks shall report the fact TO the Attorney
| General who shall then institute such action or
proceedings against such corporation as Is now
authorized In the case Of insolvent corporations
81 further recommend express statutory
prohibition restraining all associations OF this
character from scaling their liabilities to
| their shareholders for the purpose OF creating
| condition Of solvency, except upon the consent
| and approval OF the Superintendent Of Banks
| The lodging OF larger powers in this field with
| the Superintendent Of Banks would in itself
| conduce to greater prudence In management OF
| tho associations, and would be a source of
safety TO the shareholders. The practice OF
members handing dues to their Secretary
.hou,a M, he nerr,,,.d An .Yam,na,ion y,
one of tho associations disclosed that the
| Secretary was n defaulter for several
| Thousand dollars and that his dcfoult yns
...,,Danr .,"a.s.,a ~ ;.sa ..h,, y, .oas,,,na
the dues from members at any time at their con.
| xenionce md MT other than IN, regular n,cet.
inss. The fact of having money in hi, possession
| led this man. who desired to be honest, to spend
more chan ho could AFFORD; and speculate with
the fnnds IN hand. ana then MS disgrace ana tho
"As 90 mncb ~ tho business NJ an ,ssoc,a,,on
l.. -. - ~. ..S...,..s, :, ~ - y. ~. w ,s",.
s done oy comparatively ie" OF It's members IN
| the matter OF receipt OF moneys, control OF in.
yc.tments &c 7 deem II csncciaIlv essential
..s."..'' o., uoon .spoes ~ ee'oh'i1 h
the books Of the Shareholders should % be called in
and compar,d with tho books OF the dissertation,
and heartily concur with the recommendation
to this effect made by the state League OF
buiiuins anu Loan Assoo'a''ohS at us last
annual meeting.
..,,n. ,u ,h,. &C.. ... g. oa- oo, auI -,
.ha ,."as a",s,Sa~. sss ,so o. r,.
the local associations S3o,4o.,slI. 1hc ma
tional associations have sI3.s5s.l2l loaned on
bond and mortgage and the local associations
f3l,75o.2+O. The amount duo shareholders
from tho national associations is Sl4. ,2o8
and from the local associations ss2,ot7,os7.
Inc national associations nave si,o'3'Ilo IN
undivided earnings and the local associations
have g., ,O3S 339. The national associate ions had
local associations had 81 ,ies. .sa7. '"'' anu '"'
Under no law now in force do I regard
the proper supervision OF these associations. II
an unauthorixed manner, the smperintcndent
has power to tako Immediate possession OF 1t,
and In this way protect its creditors Not NO,
where he is limited to directing discontinn.
ancc OF illegal or unsafe practices or IL he finds
II unsafe or incxpcdicnt for them 10 continue
business, to report that fact to the Attorney
''rGa "Just what the situation with reference to
building and loan associations requires in the
a e and S f % TS
original idea or these Institutions TO promote
saving and frnGaiity by the working classes and
most praiseworthy. and. believing that the great
majority of them are are honestly and economically
they wero established, | am SOLICITORS not 10
suggest restrictions which might unIustly rottcr
yet feel that something ought to bo done max
Ing Il practicable to summariiy check abuses
when they occur.
| There are two classes OF building and loan
associations, known respectively as 'loculs' and
'natIonals The former conAne themselves in
radius OF hfty miles OF tho home office, limit
payment OF salaries to one or two individuals in
. | TO each other and in touch with Ihc manage
ment, substantially all participate IN tho hIs-
All this conducos TO a freedom from abuses, and
there ia little complaint OF extravaganza, avoid
able losses fayoriii ISM or injustice by the local