Arizona republican., 1899-07-27


Citations. He believes that the associ
atoms are. as a matter of fact, in bet
ter condition. and with the continued
employment of the people and theil
increased ability TO save. they will be
gin to grow and soon assume their for
mer popularity.
The total number of associations in
the United States is 5,576, with Il total
membership of 1,617,S37, and aggce-
gate assets of 5000, 49, 39.
! The continued depression in real
estate has given all associations more
or less concern during the past few
years. and the item Of real estate held
has, as the official figures show, been
gradually increasing. The &c
per cent of real estate held
by local associations is 16
per cent. lower than that held by the
nationals, a rather startling and dis
astrous showing for the latter. Aud
| this leads me TO the observation that
the oId-time nationals, with their al
| Turing prospectuses and eXtravagant
promises, their enormous expense
funds-created by deduction from dues
payments of their members and used
mainly TO pay high-salaried officials to
conduct the business for their own
benefit-are being gradually driven
from the field, because the public has
become familiar with their methods
and practices and has withdrawn its
support The ruinous experience which
nationals have met in loaning money
On real estate scattered all over the
country, dpending on the judgment Of
appraisers very often interested anG of
whom they know very little or moth
ing. is compelling the companies which
are still surviving to restrict their loan
ing territory, and to make other radi-
cal changes in their method of con-
Quoting the business. As a matter of
fact, the old-time nationals are rapidly
being forced out of the business and
are being succeeded by what are
known as state nationals" mainly on
account of the severe restrictions made |
against the former by the courts ana
legislatures of the several states
1T may be of interest 10 review !
briefly the provisions of some OF the
states which have enacted laws FOR the |
regulation and control of this type of |
associa tons. AIassachusatt e:-cludes /
them entirely while New York, Dido.
Indiana. Illinois, Missouri and Ken |
lucky require a deposit in cash or
bonds of 100000, Which. from the ma
ture of the associations securities. alb |
solUteIy prohibits them from doing
business in these states. Iowa re
quires a deposit of $4,000 cash or
mortgages or Iowa property; WiscOn-
sin. 100000 cash or mortgages; Mn
nesota. Oregon and Washington. $780,
Geo in mortgages deposited with any
state department or trust company;
California and Colorado require a $50.
OO0 deposit of mortgages taken with
in their state: New Jersey, 100000
cash, bonds or mortgages on New Jer-
sey property; Maine, $4,000 in cash
and 10 per cent. of the receipts taken
in the state: Montana, SO, 600 in mort
cages and fhe deposit of all mort
cages taken within the state; North
Dakota. $4,000 in money or securities
subject to taxation; Kansas. $4,000 in
cash or bonds, or the bonds of some
surety company in equal amount con-
for the performance of its
with its members in Kan
sas. Before entering New Hampshire
100000 assets. Michigan imposes a
franchise tax of one-half of one mill
upon each dollar of the authorized cap
tai stock of the foreign association
Nebraska compels the foreign associa-
ton 10 conduct its business IN pre-
ciseIy the same manner as its local
associations are operated. So it will
y observed that the desirable build
ng and loan property in which ma
ional associations can still do bust
less unmolested has been materially
and each year finds other
rates imposing similar limitations, so
hat it Will not be long before there /
viii be but few states remaining which 1
Will not have enacted some sort Of re-
trictive legislation for national asso- 7
cations.
In New Jersey the operations of fbe
We're so fragrant that during a
he past year the Union county grand !
ury was compelled to take cognizance )
i
rial to the court.