Bridgeton pioneer., 1900-12-13
NEW JERSEY
BUILDING ASSOCIATIONS
Commissioner BEETLE Says Too
Much Extravaganza.


port on the building ana loan associ-
ations in operation in New JERSEY.
The report is the first one to cover
an entire years control of these as
sociations by the Banking and insur-
ance Department.
The report shows that there are in
the State $50 building and loan asso-
Citations, an increase of two over last
year. OF the 800 associations, all but
one made reports.
During the past year, as the result
of examinations, four associations
were placed in the hands of receivers.
These were the New Jersey Building
and Loan Association of Newark the
Dime Savings and Loan Association
OF New Jersey, located at Jersey City:
the Empire Loan and Investment
Company of Newark, and the Mer-
chants and Mechanics Saving Fund
and Building Association.
The latter was "local," and it's
failure was due to bad loans. The
failure of the other three is attri-
buted by Commissioner BEETLE to ex-
cessive salaries and heavy expenses,
absorbing the earnings, and in addi-
tion, in the case of the first named
association, to the making of bad
loans.
The report shows that of the 800
associations in the State, 1926 are
'local, - II State and national
associations. In the 800 associations
there are 1875, 131 members, who. b Did
9S1, 893 shares.
This is an increase in members, for
the year, of 1916, and of 40, S32 in the
number of shares held.
The total gross assets of all the as
sociations is $51, 125, $50, and the total
net assets or present worth of the
outstanding shares is S47, SCI, 800.
The total numbers in the local as
sociations i 97,115, and these hold
637, AL shares. In the State associa-
tions there are 27, 764 members, hold
ing 218, 541 shares, and in the nat on
ais 4,232 members and 35, S21 shares.
Mortgage and stock loans constitute
80 per cent. of the assets of the
locals, rs per cent. in the State asso-
Citations and 81 per cent. in the ma
tionals. The ratio of borrowing
members is: Locals. 20 per cent. !;
State, ! per cent. nationals, II per
cent. Borrowing members hold 33
per cent of the stock in the locals,
l6 per cent. in the State and 20 per
cent the national associations.
The reports of disbursements show
that the ''locals" paid $4, 681, 3S5 for
matured shares and 81, ,O30, 338 on
Withdrawals of shares. The State as
sociations paid $416, 725 on account
of withdrawal of shares and nothing
on account of maturing shares. The
''nationals" paid $21S, 877 on account
of withdrawing shares, and but 81, 500
on account of matured shares.
In the report of the disbursements
it appears that the "locals' paid
Sl47, 099 in salaries and commissions
to officers and others, that the State
associations paid for the same pur-
pose S164, 347, and the nationals
S34, 29O.
1t thus appears that with nearly
eight times as much received in dues
and with over three times as many
members, and with nearly three
times as many shares in existence, it
costs the locals less for salaries and
commissions than it did the State
associations.
Fully as unfavorable comparison
can be made in the case of the ma
tionals, and this prompts Commits
sioner BEETLE to say:
'It requires buta glance at the re-
ceipt and disbursement items to show
the marked disproportion of expenses
OF management in the State and ma
tional associations as compared with
the local concerns. That reduction
in the expense ratio of some of the
former would be to the advantage of
the shareholders, and tend to enhance
the stability of the associations, is
obvious. Economy in administration
is a fundamental principle in the
scheme of the true building and loan
association, and were the opposite
conditions exist more or less injustice
to the members is the result. The
greater the cost of conducting the
business the heavier the burden i'm
posed upon the stockholders and the
smaller their returns. In no other
class of institution are costly methods
quite so indefensible and so entirely
unesSential to the attainment of the
object in view.
The position of the clothier, Just
now, is good one, as is that of the
coal man, who ever since the Penn
sylvania coal miners strike has been
in hard luck.