The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-02-18
Representatives Of State
Associations Discuss Pro-
posed Legislation.
THE OFFICIALS DISAGREE.
Some Think Present Laws
Sufficient and Others
Want Supervision.

t6pepldl TO Inc Jersey LILY News. J
TRENTON, Feb. IS, 1s99.-Seventy of the
1923 local building and loan associations OF
the State were represented here yesterday
at a meeting called by George H. Forman,
of Newark, Secretary of the State League
of Building and Loa Associations.
The meeting was held in the Assembly
Chamber, and was presided over over by
Edmund G.. Read, of Camden, Mr.. Forman
acting as secretary.
The sentiment of the meeting seemed
to be much opposed to any proposed leg
~isiation, which is in striking contrast witt
the expressions of the conservative lead
ers of the big local associations, who ap-
peared before the House committee hay-
ing the building and loa bills under con
sideration. These gentlemen favored
State supervision, a majority OF them
supporting the Guenther bill.
The first speaker was Frank o. Cole, OF
Hudson, who took a decided stand against
any legislation further than is already
provided for in the act of 1890, which pro-
vides for the making of an annual report
to the Bureau of Labor and Statistics. Mr.
Cole spoke at some length. and when he
had finished it was decided to have a roll
call of the counties represented.
Atlantic and Burlington counties repre-
sentatiyes stated that the associations
they appeared for were against any fur
Their legislation on the subject Ihey
thought the present law, together with a
proper performance of their duty by local
auditors. would afford all the protection
necessary to shareholders.
City Solicitor Godfrey, of Atlantic City,
thought that it would be more ~advantag-
eous to amend the existing law so as to
more strictly define the duties of auditors
and secure a better supervision on their
part of the financial operations of their
associations.
city Solicitor Bleakley of Camden, was
opposed to any legislation. but as the
lesser of two evils, he would prefer the
Guenther to the Bell bill.
Speaking for Essex county, MI. For
man said it seemed to be conceded that
State supervision of some kind is sue to
come. and that 1t would probably be wise
to decide Upon what kind of a bill was de-
sirable. He thought there should be a
combination OF the Guenther and Bell
bills. He was opposed to annual exami-
nations of the associations, and as to
whether the State supervision should De
left with the Department of Banking and
Insurance or the Bureau of Statistics,
was for the delegates to determine.
Secretary Forman thought that in case
Of examinations. If they were called Tor
the officers or shareholders, the expenses
should be borne by the association ex-
amined. but if made by the State authori-
Ties upon their own v~olition, then the State
should bear the expense. He vigorously
onposed that section of the Guenther bill
which provides that the expenses of all
associations shall be paid out of the earn
ings. He believed in supervision as a
proper blow against the methods OF ma
tionar, associations, but thought it ought
to be accomplished by separate Legislation.
Thomas w. Jackson took the very oppo-
site position on the Aforementioned clause
of the Guenther bill and made a strong
plea in support of it.
Isaac Goldenhorn, of Jersey City, made
a lengthy speech against any legislation
He could not see where anything was to
be gained by taking the matter out of the
hands of local auditors and putting it in
the hands of State auditors. He ridiculed
the idea that everybody should assume
some law was to be passed, and said it
would be more reasonable to assume that
the Legislature would respect public sem
timent. and not pass any law. If it was not
made plain that al aw was wanted.
At this iuncture an adjournment was
about to be taken, when a motion to levy
a tax of fifty cent per association repre-
sented, for the benefit of Secretary For
man, was carried.
AT the afternoon session, John P. Lam
drine, of Jersey City, made a speech in
favor of State supervision, in which he
said the association ought to be willing
to protect the poor shareholders. There
had been several failures, and a State SUI
pervision would prevent a recurrence.
William G.. Cuddlippe. of Jersey City,
followed in the same. line, calling atten-
ton to the failures of two years ago in
Trenton. when hundreds of poor people
suffered through the s~peculations of Peter
w. Grocer. The latter was treasurer of
two associations and wrecked both by
misrepresentation about 5000 % of the
funds.
De Witt Van Buskirk, of Bayonne, sent
a telegram favoring supervision, the ex-
animation not to cost the association
more than $50.
Horace Robertson, Of Bayonne, said he
represented an association that did not
need any State supervision, yet ~ be-
lieved such supervision would be a good
thing. The fact that an association
would have the stamp OF approval Of the
State upon 1T could not fall to do the as
ISOLATION much good.
william T. Tuttle, of Jersey City, mad
a redhot speech against supervision. The
Bell bill, he said, was Extremely crook
ed and he saw no reason why every as
ISOLATION In the State should be subjected
to . supervision, simply because the peo-