The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-05

DDS in business transactions between each
association and The depositing and borrow
ing members to the end that greater conf
dence NAV exist and the very best results
to all follow their labors."
OLD OFFICERS REEF .ECTED.
The old officers of the association were
reelected as follows: President, c. A.
Booxwalter Indianapolis: first vice presi-
dent, T. B. Orr, Anderson; second vice
president, E. G. Henry, New Albany; secre-
tary, A. L. Gutheil, Winchester treasurer
A A. Young, Indianapolis.
The delegates elected to the United States
league meeting to be held in Omaha in the
latter part of July are follows: Judge
/. H. c. Royse, Of Terre Haute; A. L.
Gutheil, of Winchester; John J. Harrington,
of Richmond Judge z. G. Henry, of New
Albany; c. A Bookwalter, of Indianapolis,
and George w. Smith, of New Albany. The
new executive committee announced by the
president consists of M. L. Smith, of Laray-
cite; j. j. Harrington, of Richmond; A. b.
Epvin OF RushyllIei Ernest W; Gook, Oh
The association decided to hold its next
meeting liz this city at about this time next
year, although an effort was made to have
it meet in Fort Wayne.
Among the speakers of the day was Lake
w Sanborn. of Galesburg, Ill, president of
the United States League. His subject was
Local Versus National Building and Loan
Associations, a subject which he handled
national organizations. He described the
local association as being cooperative So
ciety composed of people of the same
locality who bind themselves together in an
organization in which they can deposit their
surplus earnings. "Show me d town." he
said, "in which there is live local associa-
ton and l will show you place that has a
steady and sure growth, full of good and
law-abiding citizens" Next turning his at
tention to the national association he said:
1.-THE so-calIed national building and loan
associations (Which is a misnomer, for they
are not building and loan assoclatlonS IN
the true sense) are not cooperative. They
are not formed by the honest wage earn
ers, the boys down at the shops. But they
are generally organized by schemers "a
fact which has been proven from sad ex-
perience by very many, who on account or
lax laws in several OF the States are al
mense authorized capital. Organized by
themselves, they fill the offices and board
Of directors. make their own terms with
themselves, branch out into the world and
with profuse advertising matter full of esti-
mates and tables to prove that they, by
transacting business all over the country
can make enormous dividends and, like the
klondike miners, make their shareholders
rich by maturing the shares from three to
four years sooner than our local aSSocia-
tions. But all is not gold that glitters."
THE NATIONAL FRAUDS.
The speaker said that these associations
lacked cooperation of their members, and
also supervision, economy of management,
and the confidence of the people. Many of
them have been proven frauds of the worst
kind and yet some of them are left. Con-
tinuing he said:
1.-The West has had its dose and our
friends East and South are getting touch.
All over the country the nationals are get
ting into trouble because of their fraudulent
methods. But the people are legislating
them out by the passage of proper laws to
govern and protect legitimate associations.
Thus their field of operation is being pro-
scribed. 1t is impossible for these associa-
tons to make any profit and that is what
the shareholders and borrowers are after.
Fl. F. Cellarius, secretary of the United
States League, was also present at the
meeting and spoke on the subject of the
advantages of state league. He said that
there was $500 600 900 invested In bull0lng
and loan associations in the United States,
and dwelt on the Importance of organization
among. the associations for their mutual
protection and for the advancement and
conservation of their vast interests.
H. A. Rosenthal, editor of the Co-opera-
address add ssw on Il the subiect Should Profits Be
Distributed Before Earnings are Received?"
He held to the view that an association
ought never distribute any earnings unless
they are represented by actual cash re-
ceived, that if delinquent fines, ETC., are
counted as assets and profits are distributed
time when the association will suffer from
it. He thought that all delinquencies when
paid should, after expenses are deducted,
be placed in the contingent fund, and that
the division of profits should be made only
upon the net sum of cash earnings in hand.
Thomas Orr, Of Anderson, spoke upon the
subject: 1.-THE Indiana Building Association
as a Financial Institution" He said: :.
indiana are now deUelnninr info the hest
savings bank system in the world; and the
succeeding Legislatures of the State will
watch over and aid their growth and ex-
pansion by the enactment of such laws
from time to time as will remedy existing
evils and defects, and assist them in reach
inc md nniN
the solid and permanent financial institu-
lions OF the State
checking unsafe and dishonest methods pur-
sued by state associations. He thought that
great care should be exercised in the selec-
ton of security for loans and that every
association should set aside contingent
fund for losses.
MR. THOMPSON'S PAPER
c. N. Thompson, of Indianapolis, read
paper entitled Some of the Practical Eff
fects of the Building and Loan Law in In
diana" He said that building associations
must meet the decline in interest rates.
Premiums will have to go and also the fines
in most associations. He believed that
where straight loans can be obtained for
or per cent the installment plan cannot
demand more than or per cent. In
speaking of the fine he said:
There is no reason for fine in an assoc
citation which does not put the dues into
the profit-sharing account until they are re-
ceived. The theory of fine is that it is
compensation for the members default, and
he is allowed to share in the profits as we'll
for the time of his default by paying the
fine. shown an account OF a few dol
lars that had been deposited IN an aSsocia-
ton several years ago, and, further dues not
having been paid, 1t was consumed by fines
and yet the member would not have re-
ceived a cent of profit on his further pay
ments until they were actually made. Such
fines are impositions, and building associa-
tions had better abandon the requirement
of them.
In closing Mr. Thompson said that the
associations will go back to their work as
builders of homes along the lines laid down
in the new statute. THE new law restores
these institutions to their original province,
and time will demonstrate this. Then the
confidence of the people will be renewed
Every association should carry ample
This is absolutely necessary under the law
for all deposits and pro rata profits are re-
turnable, and there must be some adequate
provision for losses. The omission to do
this might be fatal
NJ l.. Smith, of Lafayette, spoke on the
subject 1.-The Relation of the Secretary to
the Stockholders and Officers" He en-
phasized the Importance of the secretary
being a member of the state league, not
only because of the good resulting to him.
self, but also to the association of which
he is the secretary. New ideas on live
topics are always discussed at the league
meetings, and there is a feeling of kinship
engendered on those occasions that cannot
but help inure to the benefit of association
CAUSES OF FAILURE