New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-18
DO NOT WANT SUPERVISION
BUILDING AND LOAN MEN OPPOSE Elk
ANIMATION OF THEIR AFFAIRS.
MINORITY MAKES GOOD TrGHT FOR TIE
PROTECTION OF Stockholders BUT
cLAoUE CONTROLS THE con-

Trenton Feb II (spsc.aD Representatives from
ten counties OF seventy % the - building and
loan associations OF New-Jersey net to-day In the
Assembly Chamber in A special convention caAed
by the State League Of Building and Loan Assoc
Citations to consider proposed legislation. the In
tention OF which Is 10 provide for State supervision
OF the building ard loan associations Edmund r..
Reed jr Of the Franklin Association OF Camden.
presided, and George r. Forman. Of the West End
Association Of Newark. acted secretary
Two bills are before the LEGISLATURE. one intro
duced by Assembyman Bell placing building and
loan associations Unde- the supervision OF tns
Commissioner ~ Banking and Insurance. defining
HIS powers and duties clearly. requiring annual
reports under q penalty Of Ego, and requiring An
annual examination Of every association az tho
expense of the association and more frequent ex-
animation Al the Comm ssoncr's discretion.
Assombiynan Guenther's Bill introduced AZ the
request Of twen;y-n'no Of the ffty-three associa,
tons in Essex, requires very complete eerNned
annual reports 10 >. made 20 the chief Of the
~, and provides for STATE examination al me er.,
pense Of the association IN case OF the failure or
any association 10 msk, the reqgFed report. OF og
ne stockholders of ary. association. Il also pro-
cause ~ uasats,seoiy 6,po,s ~ =, Re cnn
vdes that The expenses Of all assoc lions shan oe
paih ony rom me- ,nins atL 'Y, rom h
aimed against those eo-called MAJ ional sssocia-
tons vhicn deduct 81 par cent 9m every pay
~ the hearing those Bills before the Fouss
Committee on Corporation dozen consssry,aunss
representatives. 81 the leading associations declared
strongly IN favor o. STATE sGPerSi,,9n, sono s1s
ed by building and loan men; Others comoina..
jo9 Of me Two e an arses 'nS ~, ' nrosiion
which State supervision would afford aSainst Wild
s5eme '" Of sapeon W.. nesd to project he
savings II the thousands ~ poor people VINO are
shareholders In these associations
HOSTILITY TO STATE SUPERVISION.
were called by counties Tor the expression OF their
opinions and intense hostility 20 form % state
supervision was manifested. l. was alleged that
the law OF lsSl was sGhcent oLt an oplh'yh OF w
Gus speakers asserted NAT the proposition 81 stats
places for Themselves az the expense OF the asso-
Citations and ructed large and dreadtul-look-
ing bogy which they proceeded 10 buffet with
much fury. They said they were MOI IN favor 81 any
legislation whatever that the inspection %
the local auditors was quite sufficient that the as
socations were private concerns ana me Legs
lature had business interfering with them mat
the scheme was to roo tae p.or pe9pe OF zoe s,ae
10 pay oi- res 10 49, S,..9,,
was made even to tho fee Of s. 70 be paid on tho
These sentiments were heartily applauded by the
claque which had control O. The convention. When
represen atiyes OF certain ''Naonai' associations
against state supervision was most apparent The
caque was marshalled and Us opposition 10 the
erts and aroais The itger IN the ,goodoie'
SHOWED 'i I'D. head and ne was no, po,eiaH bur
the National man with 70 % per cent OF tho
shareholders money to fatten him and an nsatabls
desire TO be let alone in his cheerful work % gath
ering in the savings o. the poor without moes!s-
tionals' did not affect the representatives. % most
Of the larger locals bot IL was potent With tbs
whom II represented that State supervisioa
meant dreadful burdens imposed upon the share.
Was Freely used win eject
pS 81 me Of o: Xewa hana and c6a f. s
the New-Jersey Central. ~ Newark both NO,
reporter tia, their co.cerns and other staole MAJ
tona associations were not only ~ favor Of SUPERB
The CHIEF speakers asainst State supervision were
Frank O. Cole ex-Assemh'yman Goldenhorn. w.
". and f. Allen smith. Of Essex
WISER HEADS GIVE ADVICE.
George II. Forman explained the plan Endorsed
by the West End Association. OF Newark 20 COM
bine the Guenther sad Bell bills so TO provide
State supervision under the Banking and iusur.
ance Commissioner under the conditions specified
in the Guenther act. The Commissioners powers -
lion AIMED AZ the n1tionaIs' had no proper pisc,
in the bill. bur ought 10 stand or fan by hset In
George P i.sndrine OF Jersey CITY urged that
State supervision Was necessary 10 protect mo
bona-de associations and the poor people who were
the shareholders
grSphed that his ASSOCIATION was in favor Of con-
sentative State supervision az cost TO the asso-
Citations not 10 exceed $50 year.
WILLIAM { Cudlipp Of jersey ~, C.!y Ho,a zee Rob
erson. Of Bayonne Thomas f watson * Passaie;
Swift. OK Elizabeth. strongly urged the practical
necessity Of State supervision such as safeguards
panies. Only IL this way. they urged. could share.
Wildcat concerns and public confidence be secured
for honest associations. but T. Was Gear that the
meeting was representative of the officers rather
than the Stockholders. and that the national
claque vas IN control
DO NOT WANT FURTHER LEGISLATION.
A. T. Zabriskie OF the Fourteenth Ward ASCOT
alton Of Newark said 20 be the second largest IN
" \.
sense OF the meeting that the existing laws we're
ample and sufficient for the protection OF building
and loan interests and that any further legislation
at the present time was unwauanted and I'M
g. A. Bourgeose Of the Atlantic Association Of
Atlantic County. offered substitute that the act
onye the aling Of reports Within sixty days after
the close OF the assoc atoms nscal year under pen-
a the apS aS Of he Governor Necessary TO
N eX4minstio2. so tnat ne Cnief ot me b s
it advisable ana declaring that no further iesis-
J. p Lardrnc said that neither resolution was
what was needed and he was Immediately choked
sci self u 10 the subject under debate.
The substitute was voted down, snd after fruit,
offered an amendmeni that il the legislature shall
deem that The public interests Te9iire more sups,
along the general Lines Of the Guenther bill
the original resolution by Mr. Zabriskie Was adopt
ed by a vote OF ~ 10 l3.
,. s56nd be amended so as 70 proyde that the es
penses OF associations should not be paid out OF IN
stalmenis or dues paid by shareholders. and mat
the officers should publish reports FOR the Informal
ton OF stockholders This WAS ruled out ~ order.
MIR Cole hoped that the minority would abide BY
the decision 81 the majority
Mr. Cudlipp said that while he represented tho
minority ne was heartily IN accord with the ma
jority. .. -
neved In standing his ground and ne minority was
right in this
CHANCES OF THE BELL BILL IMPROVED.
After adjournment NJ. Forman compiimented ths
claaue on the way IL had handled the convention
WITHOUT speaklng only boy using It's hands" and
he gave to Assemblyman Bell the dlan % a bill
combining the Bell and GLenthor bills indicated
above
Alr Bell has already introduced supplement- 70