The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-22
NOTWITHSTANDING BILL.

n
There seems TO be a feeling in the Leg
islature against Building and Loan Asso-
ciations It cannot be determined yet
whether or not this feeling IS shared BY
the majority Certain ii Is. however, that
there is a disposition on the part Of some
OF the members to attack associations Of
this character.
For years Building and Loan Associa-
tons have been favored to some extent
by the laws Of the state. The theory on
which these laws are based is that the
people ought to be assisted TO build homes.
And 1t can be truthfully said that these
associations are powerful agencies In
home building. The state has been the
gamer, because a vast amount OF prop
erty has been added TO the taxable values
by means Of them.
Now 1t Is proposed in the pending tax bill
to tax not only the homes In which the
money Of Building and Loan Associations
Is invested, but also the capital stock of
the associations. And not only is It pro-
posed to do that, but a bill IS pending, in
PRODUCED by Mr.. Hardwick of Washington,
to declare these and other corporations
insolvent when they fail to show that their
assets are worth per cent. more than
their capital stock-that is, Building and
Loan Association, whose shares at par are
worth 800 each, is to be declared insol-
vent If its shares fan below $1O7 each In
value.
A drastic feature of the bill is the one
hat aaIr 49, IltrfI Nd
Loan Association, or other corporation, re-
sponsible for money paid out in violation
of the third provision of the bill. That
provision says that the total amount APP
propriated to annual expenses shall not
exceed 10 per cent. of the amount actually
paid in by the stockholders on shares of
stock during the year in which such ex-
penses shall arise. Any stockholder can
sue the directors, or any one of them, for
the amount of the excess so used for ex-
penses over the 10 per cent. The only de-
Tense allowed a director is his written pro
test, in the minutes of the association,
showing that he voted against the illegal
use of the associations funds.
With such bills as the Tax Commission
action of the Legislature, it begins to look
as if the days of Building and Loan AS
sociatons in Georgia were numbered.
People of moderate means in the towns
might as well begin to think of getting
together their belongings and hunting
homes outside of this state, or of trusting
themselves to Building and Loan Assoc
Citations of other states where there is still
some consideration for associations of this
kind. 1t is certain that no good business
man-no man having something at stake
in tn community in which he lives-would
act as a director OF Building and Loan
Association, If Mr.. Hardwick's bill should
become law.
1t is possible that in order to satisfy
some person OF persons that wish to pun
ish particular Building and Loan Asso-
citation this bill has been introduced into
the Legislature. 1t is difficult to see on
what ground it could be of benefit TO the
stockholders of associations of that kind.
If the bill should become a law 1t would
not be long before Building and Loan AS
sociations would be things of the past
The bill should be entitled a bill to pre-
vent the building of any more homes fot
the people, and to promote the interestsaot
dwelling house landlords and out-of-the,
state money lenders. 1t is difficult to UNI
derstand the spirit which dominates the
members of the Legislature. They seem
inclined to pass measures calculated to
cripple the state. Bills that would for,
ever destroy the reputation of the state
for wisdom, justice and moderation appear
to be regarded with great favor.