New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-20
FAVOR STATE SUPERVISE,
LEADING BUILDING AND LOAN
WANT CONSERVATIVE LEGrsL,r,o.'
SHAREHOLDERS AND LEGITIMATE ,ssoo.
NEED PROTECTION MONEY. y,v,,.-
CONCERNS SAILING Under Burln
ISG AND LOAN coropo


TO draft a conservative bill for State s,ne., al:
building and loan associations failed o, n. ~s
! a. II fell into the hands - the officers ., 20
| psuedo building and loan associations vhn 1s
! posed 70 supervision because Their conc1rns =.
run for the mutual benefit Of the snarebol,,
Il cOnt' mp.dted IN the act which gives ,b"s
porliions NE but for the prof, 0, III 20 q
! Naturally they want no supervise hv ~ mo-,
, Tn'se men we've crafty enough 20 keep in ~ sst
ground. Few Of them spoke in iho c6nven,s s 20
thsN circulated SCARF story that tho .,,r.s Z
! were pushing A scheme 10 create Cffres ~ 20
selves at the expense % tho ass0-iatiors ~ ri Ia |
country associations swung into line agalns, ,9
vision ~
TIE resolution agans, further ee.se,. +
! carried by ~ votes against 3 A Number ~
scotia tiOns had TWO or more delegates W.
that IN reality this resolution cxprss.es 'ss',,
/ ments OF lcss than one-siXtn q the 3g 80
! lions I'm the State on the other hand ~ ~ 500
minority represented several associaiions. Pr
! Moreover. the convention ~. r.preser,s,aat
the officers. and not OF Tho stOckhoders W
| is the stockholders who need protection TIT
| veniion dd not ana couid NOT speak for iham
The feeling prevails among the eadinE igf,.
and loan men that state supervision IS SEW
| needed. and that II f. bound 20 come Ge,sN /
| the building and loan mon prefer the Geo.
! bill. as imposing no expense On the ssScoi,.
! but there IS a disposition among many ~
| legislators at the urgent solicitation ~ co3,.a
/ who are shareholders. 10 push he Bell bIl ~
fed SO as 70 require an eEam nation Q, 49,
| association every TWO year, This bil was At
/ and Introduced al rho request % the Ru,h,s
/ Mutual Loan Association. which bas been M ~
| cfSSfNl operation Tor thlFiN years.
| There being some fear that the eyamius,,.
! associations Will impose larg" expense On y
concerns. Mr. Bell Is willing 70 amend his M
| as 10 provide that the expense shall moi ~.
some DEFINITE amount, II is estimated a., s'' Z.
| cost Will not be over $50 This amount or s-s
! every TWO years. would be- q slight tax upo, !.
association.
! SUPERVISION NEEDED AND WILL cov
Elwood G. Harris. a wel!-known lawyer N Y,
! ark who has been prominently identified =, 4
! building and loan interests and who was uras.,
attend the convention AZ Trenton on Friiar :,
! pressed to a Tribune representative yeste-sy L
Newark. his disappointment AZ the action q I'll
convention. but said that. notVithstc ming the ~
! buttons adopted. an act would be- passed b III
present Legislature for State supervision 0! ~
Ing and loan associations.
Such an act, said Mr. Harris. was nees~,,
especially 20 protect the legitimate assoclss-, 4
from being COMPOUNDED with and injured ty :. +
speculative concerns got up 10 do business s,s (
the name of building and loan associations II,
had been for some years demand FOR such ,se,,
ton and the necessity for n vas never nors a +
parent than now. As FOR the need for State qs
sight Of the locals. that had cen sufficiently y
oustrated The Homestead Association. al Trsns
which had such disastrous experience By res,
OF the dishonesty OF a trusted man. whose or,
lions extended over period ~ years, vas a oss
point.
Mr Harris was IN favor ~ The Gueniher bm q
deprecated the plan OF the Bell 0iil By which ~
lar annual examinations are required At preset
Is optional for the associations 20 make a repor q
the State Labor Bureau These annual Fsprl
can be given TO the Labor Bureau 20 cali for -
cial reports whicn shall determine whether ens
nations snail oe made. Regular examlnarn
would also likely prove - Dc perflnciory By Il
Guenther bin only trhng expense would Z,
tailed the associations.
To show the impotency 4 the law Mr. Harris \
duced the case II the American Association "
iional con Germ in Newark which failed some nj
ago disgra cefilly. The Labor Bureau made reDeg
ed requests FOR ropor', ard received more Unit
year had elapsed ana then the report was g
character 70 warrant an immediate investigate
4 prospectus got ont by The company IN The 2 |
after the date OF the report wholly differed iroE
I'm the figures given.
State supervision l. necessary" said Mr.. Hars /
and they must come 20 u. The hes, Interests
building and loan associations demand this pro,S |
ton Tho GUcnfher bin was adopted by repre"T
atiyes OF the associations IN Newark only after n
careful discussion ~ Two meetings, and With
krOwlolg" Of the situation and OF the effect y ~
bill | am sorry that the convention fd not see u 4
matter IN tie same light
THE NATIONALS" MAKE \ LAW NECEssAR1
John 7. Landrine a wsl.-known citizen OF n
seq CITY. who has been largely interested IN buE
ing and loan matters had this 10 say yester1
concerning Bills pending In the New-Jersey LessX
AS there is over y90O invested in the Id
associations In this city II appears n1tssar
have some restrictive law by which they may
honestly governed and the stOckholdcrs pIoteus
from fraud Some safeguard rs demanded ior FL
interest Of the people ana eipec.amy LOT We
lection Of the poor people. who comprise ~, Ne, ~
ioritv Of the stockholders IN these associa'ions
This was made more imperative by me Gs.,
ization OF National building and loan associa..,s
a number OF which have sprung up IN ms "a ~
obtaining patronage by promises neSer ,u ,.r.
and nutting out agreements which never MaA.
peonte who have been nveigel into these e
Germs have lost In many cases an the Hiu"el
put in. Really the local assocAtons are ~ r.,
need OF any avs 70 govern them or reRuiate y.
business but there should be a law either % a.
t,rely exclude these Nationals or 70 maAe 80
conform TO legitimate methods ne IN mo sor h.,
bills introduced In the Legislature HaI 'o ASA
object an examination Of the BOOKS OF 'ns ,rss
tions the expense of which they were requ'"
THE convention held last week seemed %
quite favorable 10 the Natonal oTgahlLa',O ~,
It showed majority which y not op, PM, -
favor would not ask FOR law 10 res''cs 49, I
The local associations are an IN eoSu 1o-s,r
and prosperous. hut the chet OF ne ,,s srt
Industries has not sufficient power 70 r-ilsmi,,,,
that the Nationals In tho same cohIIsuy..,
10 take any coRnizance or their uoli'sss ,"ssf "A
In view OF this lack Of power u vas tnos,io,.
by many connected with the local assocssuTIsa, ~.
take measures TO have law passed y! ~ "a M
lature which would provide a I'3,a contro1r /
end this convention was cal'd. ~ and ~.
OF the Nationals were there IN iorCe, s az, ~
upon the local members the arguln as,,1rs be.
was movement in tn interest OF poH,i s,,ss, {
that II would be an unwise law anu - - M
loot an Increase OF officers and salaries. ,,sssg
s,rer"ouslv denied insisting that It was a."s sss
TOO small a matter for the politicians " so
With that there could be- only one or '"O
einEgs%yyrrai " OF these %atona associatCn'
sprung up In Hudson County, Only a. IN g,t1
pisces but not until they udH ~" '' 80 s4yee \
poor people's money. for which thry nrsvoors@
account The State IL becoming t0, ",oorls Il
with these fraudulent concerns WIZ, aver ~
nav - per cent but instead th'N 40" rnercsrlr 1
back the money put In. let aloh' ~ rlge
These National schemers have WI Soni ~
~ the door of the state PRISON. THE ~ L
what saved them from getting lnsngg' ,ose,hs, =
~ the local associat lions Is % i.Hu IL AZ,
the benefit OF all while n ~" : W., me - (
lowed 10 90 on without any rr@ul a., oor be'.5 +
~ a hulldlng and loan association WIZ hat ~ l.
a bvword I'm the community. IL j. u - VOID
was no, for the Nationals no legsl't,os ~air. 81
roodaI hut under the existing state "l Sots-,N1 1
necessary 70 have law for genera p'U O,rprs $
The convention wa. called ioi ~ r,egssfst
evolving some bills for passage pY ..hn,,g 4 ~
hut adjourned wlthou; doing any lhIns rhk ~
showing bad faith 70 the Lfgl'a' noor,,,e,hrg ~
nocted something 10 come from IT, nv me ~
Is wanted 20 safeguard The MONEY " =.
people ran Resented 81
Guenther Of Essex would ue sutlo,'r, me siis,s
ali that IS desired II provides tnI Willing -
q, oil III" mutual loan homestead ana nS shss
Citations now cr hereafter incoi po',S sssoci's.,
n"id only from the earnings of s"' L. pag
and not from the instruments on =.
stock by stockholders 90. every sch.Ss
The door is now left open forI link the =,
to come I'm and gull the people. In for :.
ventIon made a mistake In not A sn - our 81
which would be credit ana no,,t'rs and s"'
and a protection TO the ASSOCIATIONS
holders.