New-York tribune., 1899-02-08
6e Ne~$;eI|N |Ne~qegey
FOR STATE SUPERVISION.
BUILDING AND LOAN MEN HEARD oN
PROPOSED LEGIsIATION.


Trenton Fob. HpeciaD.-There was nearing
ot noon to-day before the House Committee on
Corporations on Assemblyman Bells bill requiring
annual reports the condition Of all building anu
loan associations It the close Of the calendar year
and placIng them under the supervision of the
Banking and Insurance Department Inc Dill pro-
vided that the affairs of each ASSOCIATION shou'u
no examined each year at tho expense OF tho as
sociations.
Assemblyman Gucnther in behalf Of the Newark
associations last evening introduced a bill pre-
pared 10y q committee representing forty three OF
the hfty-nine associations in Newark. and having
the lndorsemcnt of twenty-ninc of these assoch-
tions II places the associations under tho super
vision Of the Bureau OF Labor Statistics. when
now receives reports from these associations. ana
provides that each association shall submit sucb
n report is required by the Bureau within sixty
days after the close OF the fiscal year Instead OF
an annual examination by the State. this bill pro-
vides that there shall be such examination at the
expense OF the association in OF It's failure TO
make a report required in case the annual re-
port is unsatisfactory. In case OF complaints as
any associations method Of doing business or at
the request OF the directors or stockholders. The
Bureau may make examinations at other times at
the expense Of the State. The bill also includes
section as to the so-called National associations
forbdding the OF any part Of the dues of mem
bers pay the expenses of the associations These
associations take l6 per cent of the payment OF
members for expenses. while the locals use onN
/ per cent Of their Income for this purpose.
\ number Of building and loan men appeared ne
fore the committee They agreed as to the wis
dom and necessity OF the State exercising super
vision over all building and loan associations, FOR
the protection Of tho people and the suppression OF
wildcat" and fraudulent concerns. All honest as
sociations. they said wanted State supervision but
they thought the State ought to bear the cost Of
compulsory examinations. except provided In
tha hnr hill The associations do
whether the supervision is exercised by the Bank
ing and Insurance Department or by the Bureau OF
La Dor Statistics
They did not deem annual examination neces-
sary. nineteen out Of twenty Of the association
are purely local existing I'm little community.
shareholder They praised the Bell bill, especially
In IFS definitions OF the powers or supervision 70 oe
exercised. and thought II might be harmonized
with the Guenther bin. To this end they asked for
postponement Of action on the bills until after the
convention Of building and loan men TO be held in
the Assembly Chamber on February II. 70 take ac-
ton on this question The 326 associations in the
State have all been asked send representatives
The committee will defer action until this con-
The particulars in which the Guenther bill dif
fers from the Bell bill were discussed al length
1t argued that the annual reports would be
sufficient, the State 10 have full authority as to the
form Of the reports and the information to be fur
mis- he'd and that then II any report was not salts
factory, examination could be made into the af-
The argument against placing the cost of super
vision on the associations was that they were not
their own homes and TO pay off their mortgages.
It was also urged that TO examine every associ
alton every year would entail great amount of
II Would cost the state s$2 900 II paid for by the
associations IT would be a burden TO the smaller
ones
Those who appeared before the committee were
Roseville Association. George H. Forman. Of the
Of The S,afe LeagIe Of Building and Loan Assoca-
tions, Horace Robertson. of the Centrevlle Assoca-
Camden and Economleal associations, of Camden:
n. J. De Witt. OF the Eighth Ward Association OF
citation. OF Jersey CITY. and ex-Assembyman Dun.
Mr. Robertson was asked to draft a separate bill
the protection Of shareholders from the iniquitous
contracts by which their payments are eaten up
in case they withdraw.
BRUDERs BILL TO BE ALTERED.
The Committee on Towns and Townships has de-
cded that il will have to alter Assemblyman Bru-
der's bill authorizing the voters OF Harrison.
Kearny and East Newark to hold a special election
70 determine whether they will consolidate or not
and v,dng that II a majority so vote then
city With fqli municipal .5 PAL ,a goyernment shall be
other counties Moreover the bill does not respec:
will be amended so 70 be constitutional and so
70 prevent the consolidation unless each town
votes for H.
THE BAYONNE SEWER BILL.
There was lively hearing before the House
Committee Municipal Corporations on Assem-
blyman Benny's bill 10 enable Bayonne construct
trunk sewer. For this purpose the Central Rail-
road Of New-Jersey has conveyed to Bayonne
free right Of way through its property a distance
Of 300 feet and has built the portion Of the sewer
Counsel Joseph Benny, Councilman Robertson and
De Witte Van Buskirk appeared for measure.
W. ". Anderson In behalf OF two property-owners
whose property drains into a private sewer. made
Nehcment attack on the OIL he said the city