Omaha daily bee., 1899-07-02
BUILDING ASSOCIATION NOTES
Coming Convention of the National
League-Matters of Local and
General Interest.


Officers of the United States League OF
Local Loan and Building Associations have
completed arrangements for the seventh an
nual convention at Niagara Falls, July 26 and
81 At the convention held in Omaha last
wear the chief topic of discussion was postal
savings banks, Judge Sterns Of Chicago TAX
ing the affirmative and Judge Dexter OF
Elmira N Y, the negative. This year the
question of state supervision Is scheduled for
discussion between Hon. F. d. Kilburn, su-
perintendent of the banking department OF
New York state, and Hon. William Bruce OF
Chicago. Seven additional papers on various
features of the home owning movement are
on the program, among them being Ne
braska State Law and It's League" by Judge
C. j. Phelps of Schuyler.
The Nebraska delegation to the conven-
ton consists of Hon. c. F. Bentley OF Grand
Island, G. NJ. Nattinger d. II. Christie and
T. j. Fitzmorris of Omaha.
In Chicago last Thursday the last act in a
conspiracy against reputable, solvent build
ing and loan associations was brought to a
close in the criminal court Last October
Edward Owings Towne and John l.. Mowalt
we're convicted of conspiracy to wreck the
Iumberman's association The jury fixed
their punishment at imprisonment in the
nenitentiary and a fine of $1,000 for the
former and a fine of 81 800 for the latter.
Towne is a lawyer and Mowalt an ac-
countant. They formed a partnership Tor
the purpose of throwing associations IN the
hands of receivers and wrecklng them' lhelr
plan of procedure was to circulate raise re-
ports about the condition OF an association
thus frightening a sufficient number of timid
shareholders into signing an application tor
a receiver. If a court granted the request
Mowalt usually became receiver ana
naturally appointed Towne as attorney. In
n number OF instances the conspirators eN-
torted money from associations on threats OF
receiversbip. But they tackled the wrong
crowd when they went against the managers
of the Lumberman's association. The lat
fer halted the hook, drew from them de-
mand of 81, 900 hush money, and with written
evidence caused their arrest and prosecu-
ton, resulting in conviction after trial
lasting three weeks. Sentence was passed
last Thursday.
The successful prosecution OF the con-
spirators was splendid victory for Illinois
associations. 1t puts an end TO the iootlhg
OF associations under the cloak OF law ana
furnishes an example of unbending back
hone for other managers to follow when as
sailed,
The remarkable activity OF home build
ing in Omaha is evidenced in a striking
manner by the report of the Omaha associa-
tion for the last six months AT the begin
ming of the year the association had cash
surprus of $4,000, which was Increased TO
500 900 before the building season opened
An that has been absorbed, as well as the
receipts since then, in loans on homes, and
a majority of the loans were for the con-
struction of homes. In six months the as
sets of the Omaha grew from s23174l TO
s262, ,5I1: net earnings, from SS,4Si to s9'4ssi
increase in shares, 97l, making the number
now. in force 6.744. Out OF the net earnings
So 400 was taken for a per cent seml-an-
nuaI dividend and $1,000 was credited to
the surplus fund. The fattering condition
OF the Omaha reflects the prosperity OF other
associations in this city and in the state
and marks in a decisive way their strides
to the heights OF Easy street.
"since building and loan associations were
first organized in the United States-in Phil
adelphia" says the Public Ledger OF that
city, sit is estimated that at least sl,5O0-
OOO. 600 has been returned to members in
matured and withdrawn shares. II is quite
sure that very little Of this vast sum OF
money can be recorded as having been
wasted 1t Is certain that a large percent
age Of this money has gone into property