The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-07-22
Cooperative BANK FOLLY.
,.vsrcCrSSEiL EFFORTS TO GET Rt-
vrDyI LEGISLhTTON.

u,,,rt ~ Suprrintendent Kilburn
",.Iicl by the Collapse ct the nercnn-
~ r,.,prr.tIy. Bnnk-Prssidcnt Pet
Dcfcnds Ills Land Speculation.
.,r,,s. VI tho Mercantile Cooperative
,,l,h n deficit estimated by the State
n'nriro p.par.ment to 10 about S30O.OOO,
all. attention to the wildcat building
to,, associations which 90 along I'M
"..,..d by law carrying on all kinds OF top
~ financial .rhcmes. state Suierintend-
-, Ranks Frederick u. kilburn tried last
"a yet legislation to curb these mush-
,, hanks" but their promoters were In
,Harv As thick ns dies and defeated him.
i.,smblyman Slater would have succeeded In
.,,i,o n compromise measure through had
Re" ~ nanLinG department disapproved Of
~. aim Of freo withdrawals OF deposits. ON
nv -, legitimate building and loan nssocia-
w., doiug a neIghhorhood business. favored
W.. huIs proposed Among the most vigorous
Wv any restrictive legislation was
~, hank" which now shows w with deficit
OF s3UOOOO
Ch,r,.. Edward Potter. the President OF tho
,,.,,,ntiop. who sren, S275.000 OF its dwin-
a,,ro funds in April. three weeks after becom-
W., p,..bIeu,. for 10 acres OF marshland and
'nJ,rb between West Chester and Pelham
nv Park. with an Improvement" scheme in
III, head. spent YESTERDAY at the banks" office
d, Vast Twenty third street telling all in
~ ni,r erS' that his rslham View Park was all
right; A,,p won't lose five cents on that
land. he SAID with an air OF confidence Not
.gverent piece Will 1t lose. Negotiations are
Pf :55 way '2I Know s rhn snSh 0'f h eeSs
his APPRAISAL Of tho property -25 acres on the
iosd. s4, 600 an arr" - acres OF upland $500
az ara acrii hS az vsS,3'o9. FeIhHm View Park
i Sal al right. You can bank on that"
""Whut's the tank going TO do"
7, lie last eighteen months our loans have
been practically nothing and Our expenses
.h. These tull4inG aud loan associations are
built on loJ-r, tsr.to. paw Paul plan. and
they've got to wind up sooner or later. Yes.
rompanies are all right in England. where
tenple arc honest, but here everybody is Try;
ibr to do some body else case OF swinlling nj!
audited the banks books was reporting re-
cepts Of - 800 day, when the bank didn't
take in more thah ,n,fH -, OF IN tna5; ISe pre-
showing thut our deficit is Al. o45. "a. as IL 10
impossible to realize the book value on real es-
tate loans. The Banking Department makes
" Superintendent, Kllburn smoke very strongly
against the methods Of these association In
ri do not believe that merely speculative
purchases were within the concentration OF
he LEGISLATURE. They certainly do not accord
with the principles npnn which these assoca
zion, are based Where an association has
conducted il business for many years along
vpl.derned lines and obtained subscriptions
10 It's stock on the understanding that 1t Is a
financial institution. ii cannot In any event,
be considered safe or eKpsdient that 1t be sud
denly turned into corporation dealing In In
cJmherel real estate OF n merely speculative
value at the cap-ce, or worse. OF its directors.
H. seyrra' of the instances referred TO there
has been too much reason to believe that these
,aes % real estate wore cCllusics and that
some ct the officers Of the associations were
directly or indirectly interested in their con-
summation. New names have by come means
suddenly appeared in the lists of officers with
out notice to the shareholders. the names OF
men ~ them strange and un known. while the
old o1lcsrs have as suddenly deserted their
posts IT, associations that have engaged In
these operations have.been with few excep-
tons th0s. al7sadv nearly ruined by past mis
management. Al times there has seemed to
be some evidence that band OF wreckers had
been formed for the purpose OF proving upon
the remnants Of associations already upon the
verge Of dissolution. II this he so. IL Is to be
hopeh TINT sons vi them may yet meet with
their IA. le5-rts ] believe that Il is the i'm
pera.ive duty Of the Legislature to Immediate
" pHss surh an amehdmsnt'to the Banking
law as will prevent speculative dealing In real
Wtate IN The future.