The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-07-30

or columbus, deputy inspector or Ohio
Duilding associations, and a brother-in-
law OF President Mckinley. He said
the purpose of his address was TO stimu-
late among those interested in the MAN.
.ensnce OF the original principles upon
which building and loan associations are
based, inquiries as 10 present rights and
duties Of members and their relation TO
creditors. Such increased interest. he
asserted, with its accompanying broad
er understanding OF rights. privileges
and duties would DE the Inspiration OF
more favorable legislation and the best
defense agains, inimical laws.
''At no time" said the speaker. has
the public demanded more stringent
legislation and protection against VS.
ionary and dishonest schemes under the
guise Of building and loan associations
than at present
Mr.. Duncan commended the somple
contract provisions OF the original
Greenwich building and loan society, or
ganized in 1872. as a true test and rea-
sonable guide for building associations.
and one which the courts OF England
and America are disposed 10 recognize
in their decisions on these subjects
The right of member TO borrow upon
his stock or receive an advanced loan
upon his shares might be called the cor
nerstone OF the system and any Depart
ure from this fundamental principle was
destructive to the whole Scneme. Inc
general rule OF allowing directors 10 de-
tern1;ne the amount TO be paid TO
Withdrawing member had been stun
ming blow 10 the associations. The Onlo'
said the speaker. makes an annual dis-
tribu.ion, TO De placed 10 the credit OF
members accounts. thus place,ng the
associations upon the same basis IN THIS
respect as other financial institutions
Owing to the peculiar nature or the
building association, receivers had 70 De
allowed great discretion in setting
claims in cases OF liquidation or insol-
vency and the line of action in such
cases should be modified according 10
circumstances and the statutes OF the
various states. In conclusion Mr.. Dun
can urged stricter compliance with the
foundation principles of building asso-
Citations and closer observation OF state
statutes relative thereto.
THE Service and Influence OF Our
State Leagues" was discussed by the
Hon. James Clarency. of Philadelphia.
He spoke particularly Of the state
leagues influence upon legislation ar
fecting building associations and give II
as his opinion that every state should
have a specific building and loan law
and all societies he incorporated under
1t.
1--WE have" he SAID. Ito keep associa-
tons 50 purely. even severely, local
that we might build up a system in
which the local companies would be-
come interested and thereby lessen the
possibility OF failure, either through de-
falcations or unwise investments"
He advocated the election of first
class building and loan man to every
session Of the different legislatures.
Organization by building associations
for legislative purposes was also sug-
gested.
Albert Barnes OF Decatur, Ill, treas
urer 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 anG 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 proper
tionate loss but also the additional bur-
den Of that part Of the loss which should
be charged TO maturing shares.
Mr.. Barnes cautioned secretaries not
10 hasten the time for the maturing of
any shares. On account of importuni-
ties OF members or for any reason, no
matter what the temptation 10 be able
to announce, quick maturity OF shares.
The league today elected the follow
ing officers: President. L. W. Sanborn.
Galesburg, H.: first vice president. Will
lam Bloom. Buffalo: second vice presi-
dent. Timothy R. Foster. Vicksburg.
Miss: third vice president, Thomas j.
Fitzmorris. Omaha; treasurer. William
z. Shepard. Grand Rapids: secretary.
Herman Cellar;us. Cincinnati: assistant
treasurer, George F. Kostmayer, New
Orleans.
Omaha WAS selected as the next place
OF meeting by reclamation. After few
brief remarks. the convention adjourned
IT, ISA