The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-17
THEY HAVE HELPED THE CITY.
MIR. DoRsETT SAYS A WORD FOR
BUILDING AND LOAN COMPANIES.

Is for the Directors of the COM
pany I'm Which He Is Interested to
Write Letters TO Representatives
and senntor-In Twelve Years the
Local Companies Have Doubled the
Size of savannah.
Protests from local corporations against
the passage of the tax bill reported to the
Legislature are becoming manifold and
vigorous. There has been some activity
towards securing the defeat or amend
ment of that section Of the bill that has
regard to the taxation of the capital stock
of corporations. but scarcely sufficient, It
would seem, certainly to stem the tide that
bears the bill towards its passage.
There is no doubt about the fact that
vigorous and determined effort must be
made TO oppose this feature of the bill.
The gravity of the situation cannot be
overestimated, said a Savannah business
man, nor is 1t safe to trust TO the sense
Of justice of the House and Senate, with
out qualification. There is more than
bare chance that if the bill is suffered to
go unoppOsed, or even to go with weak
opposition, to Its passage or defeat, there
Is little reason to prophesy that it will
be one rather than the other. This is the
firm conviction of the clear-headed bust
ness men who have investigated the ques-
ton and thought IL out for themselves.
The building and loan associations are
perhaps as much affected as any other
class of corporations. With some other
corporations it may be that not all their
capital stock is invested In taxable prop
erty, and that hence in their cases il will
not be double taxation in it's fullest mean
ing. But with building and loan associa-
tons the very purpose and object of their
incorporation require the investment of
their capital and those of them that are
best managed, and therefore most deserv-
ing of public patronage and support, are
those that have the money of their stock
holders at work. These. it will be, then,
that are most seriously affected by the
passage of the bill.
Mr. C. H. Dorset, president of the Peo-
pies Savings and Loan Company, and
vice president of the Chatham Real Es-
tate and Improvement Company, gave to.
a representative of the Morning News a
clear statement of the effect that the pass
age of the bill would have upon the class
of corporations In which he Is chiefly in
terested. When asked what action il any,
was being taken by the officers and direc-
tors of the local building and loan compa-
Mr.. Dorset said:
Il have not thought IL wise to call
meetings of the stockholders nor to take or
advise any action that would have the
! appearance of organized corporate effort
l am rather afraid that such corporate
meetings have the same effect upon some
of the members of the Legislature as a
red rag shaken before the eyes of an en-
| ragged bull, and that these legislators are
able to see in these meetings and their
| resolutions nothing but the strivings of the
| grasping and rapaclous money power to
| gather TO itself more ill-earned or un-
| earned pelf, at the expense of the down.
trodden agriculturist Wherefore, 1 have
! sought to avoid even the appearance of
evil
My plan has been this: I have writ
| ten to each of the directors of the COM
pany of which l am president, asking that
| he will address letters to the representa-
tives from this county and the senator
| from this district in the general assem-
| bly,, asking that they will give the bill
| their serious attention and suggesting
some of the evils that will flow from its
passage. I have suggested further that
| the directors write to such other members
of the House and Senate as they may
know personally on this subject. 1 have
strong hope that this plan will be of some
avail.
Il have myself" Mr.. Dorset continued
written to Representative McDonough a
! long letter In which have stated our OBJ
! jections to the bill as fully as I could.
After urging the consideration of the fact
that the general effects of Inc bill viii
| be absolutely Ubiquitous. double taxation
in its worst and least endurable FORM and
| that the passage of the bin would drive
| from the state much of the capital now
| invested here and prevent the coming or
other capital, l called Mr.. McDonough's
further attention to the defects of the bill
| with special regard to building and loan
associations"
SIN the first place, there is a current
| opinion that the holdings of these coppoF-
| atoms have been bought at a very low
| price and are held for sale at an exorbl-
tant profit This is far from the true fact
of the case. Most of the real estate is
| bought in by the company at public SALE
! when It is willing to give more for it than
| any other prospective buyer, after II has
been forced to foreclose its lien upon the
| property of a defaulting stockholder or
borrower. Whenever we foreclose II means
a loss to the company. and we never do it
| except as a last resort and after every
other means of collecting the loan has
failed"
I'm the second place. the companies are
not declaring enormous dividends. 1t is
only by the exercise of the strictest econ
omy and the most careful attention to the
details of the business that we are able
to declare dividend of per cent to the
stockholders. who, moreover. areNnot usu-
ally nor for the most part of the wealthy
class. There are no officials with fat sal
aries or gorgeously appointed Offices. Our
method Of doing business is extremely
plain and unassuming."
"Then," said Mr.. Dorset, 81 called Mr.
| McDonough's attention to the fact that
these corporations are really benefcent in
stitutons. A few years ago, when the
| banks refused to lend money upon real
estate, we took their place and made loans
| freely. We were enabled to do this because
we had good credit with the banks and
| we lent the money to the same parties and
upon the same security that the banks had
| refused. BY this means we made many
| moderately well-to-do man the owner Of
his own home. who would otherwise be
| occupying a rented house.
an Savannah these companies base in
creased the city TO twice its former size
| within the last twelve or fifteen years We
have populated the whole southern Sec