Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1899-01-26
Building and Loan Associations Are
Profit Sharing and Not Bound
to Legal Interest.
GATHERING OF INSURANCE MEN
Fifteen Accident Insurance Com
panies Will Confer at Des
Moines-.Other Notes at
State Capital.

XII CtiAASlA SSSl0AAE NlAAO PASAAANAAAS 80
building and loan contracts are
usurious, but that the enabling act
curing them passed by the last legis-
lature is valid. The law as passed pro-
yides that the building and loan assoc
Citations might assess and collect dues,
membership fees and fines and inter-
est on loans even though such assess
1nents fines and premiums amount to
more than legal interest. A clause i'm
serted also provided that all previous
contracts should also be exempt from
the usury law. The case was entitled
the Iowa Savings and Loan association
against Lawrence Heidi and others,
shareholders.
1t will be remembered that the last
Iowa assembly passed u law giving
building and loan associations the
power to assess and collect dues, mem
bership fees, fines, premiums and in
terest on loans in accordance with it's
articles of incorporation, even though
such assessments, fines and premiNms
might amount to more than the legal
interest. 1t also inserted clause
making the above exemption applica-
BILE to all contracts between associa-
tions and members entered into prior
to the passage of the law.
In the case at bar the Legislative act
is questioned OH the ground that it is
class legislation and unconstitutional.
The court holds that in theory such
institutions are profit sharing.
Amounts directly paid for the use of
money go Immediately to benefit
stockholders through increasing the
value of their shares. Thus, where
loans gre confined to shareholders,
there is good reason for exempting
such associations from the usury laws.
So far as the retroactive clause is con-
cerned, the ruling is that subsequent
legislation is not to change the agree
ment between any association and
shareholder, but simply to remove
bar to its enforcement, and there can
be no objection to the entering of a
decree in conformity with the law as
it now exists.
Insurance Men to Meet.
The most notable gathering of ac-
cident insurance companies that has
met in Des Moines will convene jan
uary ~ and 2s. The meeting is being
arranged by F. Z. Haley, secretary OF
of Iowa State Travelling Mems associ-
alton. 1t is the second annual meet
ing of Trans-Mississippi Mutual Acct
dent underwriters, at which will be
represented some twelve or fifteen
companies of the leading accident com
pallies of the middle west.
G. B. Fldgg, secretary of the U. c. t.,
is expected to be present. The Illinois
commercial men will also send repre-
sentatives. Among the companies to
be represented will be: Equitable Mu-
tual Accident association, OF Omaha,
Neb.; Iowa State Travelling Mems as
ISOLATION, Des Moines; Woodmen Acct
dent association, Lincoln, Neb.; Wood
men of the World Accident association,
Omaha, Neb.; Western Travellers Ac-
cident association, Omaha, Neb.; Trav-
elers' Protective association, st. Louis
Mo.
State Will Pay.
Adjutant General Byers said yester-
day that the state had decided to pay
the armory rent incurred i'll various
parts of the state when many of the
state troops We're organized in com
panies last summer before coming to
Camp Mckinley. The state is not le-
gally bound to do this. 1t ordered the
companies when through with the
armories to send their stuff into Dies
Moines and stop the arsenal rent. Many
of them did not do this, and claims
came in to the state for the rent. which
continued. The state did not at first
see fit to pay the bills, but has now de.
cided to do so. They will amount to
something like $4,000 for the two regi.
ments which have been mustered out
The armory rent of the new guard
companies will of course be paid by
the state.
Knoxville All Right.
Ex-Governor Larrabee and Hon
John Cownie,of the state board of con
troll, returned from their visit to tho
Knoxville home of the blind. The
board says there is nothing in Tho
charge against Superintendent Gull
bertson, which is being made in petit
tions circulating in Knoxville, asking
for an investigation of the superin
tendency of the home. Haines, who is
circulating the petitions, is said by til,
board to be misrepresenting matters,
that Haines was discharged from the
Institution for good cause and the
board knows why he is now seeking tt
make trouble.
Atlantic Mill Burned.