Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1900-03-01
HARD AFTER THEM.
Remley Pays His Respects to lewa
Building and Loan Associations.

Remley Pays HIS Respects to lewa
Building and Loan Associations.
DIES MoINEs, Feb. si.-Attorney Gen.
eral Rcmley's opinions regarding tho
existing evils in the laws governing
the building and loan and Insurance.
business of Iowa, and the needed rem.
edies therefor, were presented to the
Iowa senate yesterday, In reply to g
request from that body made over q
week ago. They are even more sweep
Ing than has been expected. Accord
ing to Mr.. Remley there are many cor
porations which may be clsssed unde'
these heads now doing business of an
illegal kind in the state and swindling
the poorer classes of people every day,
Mr.. Remley does not point directly AZ
any particular corporation, but the
elements of his charges are SO sweep
lng and of such a nature as to assure
the bringing out of many prominent
men in the state who are connected
with large associations Of the kind,
and who will undoubtedly refuse to
rest under the charges which have been
made. Mr.. Remley expresses the opin-
tOn that neither the state executive
council nor the attorney general has
the power which should be given 10
these authorities in passing upon the
business of the corporations involved
His criticisms on the building and loan
business do not SO much apply to the
domestic associations doing business il
the state as to the larger associations
where stock Is purchased in largo
amounts by capitalists who desire to
obtain exorbitaAt interest rates on
their investments and are thus crush
ing the poorer classes. the ones which
the law was intended to benefit and
protect. His criticisms on insurance
organizations are aimed ut the GLASS of
companies known az the farmers
mutnals, and some of the larger life
Insurance organizations. Many OF
these companies, according to Mr..
Remley, are conducted in a decidedly
loose manner, thus bringing oil the
Iowa companies into disrepute. The
recommendations of Mr.. Eemley for
changes in the Laws explain largely
the fault he has to find with the pres
ent methods governing these corpora
tions.
His recommendations in brief relat-
Ing to building and loan associations
are as follows:
Fist The law should forbid any part Of the
principal paid in by tho s ock holder to be used
ter expenses Second. There should be limit
upon the expenses OF the associations. Third.
AL guaranteed stock or preferred stock under
sny and all names which receives fixed diyi'
dead, whether profits have been earned or not.
thoEld be eliminated. The power to impose
Bnes and forfeit'lTes vpOn persons who fail 10
paw the tnstallments on their stock ought TO he
ia ina M nf
and loan associations from the law Of uSury
works hardship which the former general
Assem- 9iies ooulh not have seen, In Mr.. Rom;
ought TO ba given more plenary power, inciud-
ing the power 70 revoke the certificate author
ling the ossociaticu TO do business Seventh.
Provision should be made on which money
paid on stock by the party who has borrowed
theron, IN case Of foreclosure, should be treated
Rs an absolute payment on the money borrowed
toge her with the profits, II any, credited on
such stock. Eighth. Some provisions should
be made TO enable associations to go into vol
untary liquidation, with suitable provision tor
tho pro cotton Of the borrowing member. 1t
might b G well also to authorize the assignment
OF loans made by the lquidating association 10
rome RssoctauCn of similar character. sub
Jet 10 the rights Of the borrowing member TO
have the amount paid on his stock credited or
such loon, or to permit two or more associations
TO consolidate by three fourths vote OF the
stock Of the respective associations, on terms
which the executive council or some oftcee OF
the state should approve as equitable to all con-
ssrued Ninth. Chapter OF the laws Of the
tweaty-seVenth general assembly. should be
repe aled Its eject was to make new and dir
terent contrncts for those affected thereby,
which has worked hardship in many Instances
In regard to the remedies needed in
the insurance code, the following rec
are made:
First-AM articles OF Incorporation OF com.
psnIes 0nd associations Incorporated under the
laws Of This state, as well as those incorporated
in other states, should be submitted 10 the aud
itOr OF state and attorney general for their ap
prevail, and these officers De authorized to dis
approve all plans which do not provide proper
safeguards for the protection of pClcy holders.
Second--Al companies and associations which
make assessments on the members, or by So
called safety clause reserve the right to make
assessments should by statute be prohibited
from issuing socalled paid.up policies, limited
pawn ent policies and from accumulatiDg fund
~ be paid back to the El6lnbsTs as dividends,
dtstriUutiou OF surplus, or endowmentS ia any
form. Tbird-Al forms OF policies should be
submitted 70 the auditor for his approval and
he should be required to hSapproye I'll forms
which do not state on the fac3 OF the policy ell
the terms, conditions or wHrranuss by the
breach OF which the policy Is voidad and TO 10
woke the certificate Of any company not comply
ing with this provision. Fourth.-An policies
which require the payment Of O fixed premium
SHOULD be mode nOn-foifeit5ble after two annual
payments Ftfth.-Any company or association
which publishes its literature with false and
misleading statements as TO the nature Of It's
business, should forfeit It's right TO do business
~ Inc SLaUc- StALu-lnc SSCJlOu vi Lub
requiring medical examtnat,on OF all members
of associations should Ee made TO apply to level
premium companies Seventh.-No mutual
company or association should be permitted, by
sn amendment OF articles OF ineOrporat ion, TO
tncI else the pcemium rate Of assessments on
existing policy holders. Eghth--NO stipulated
premium or assessment company tncOrpOra ted
under the laws OF another state should be per-
mitted to do business In Iowa II 1t uses greater
per cent OF the premium assessments for ex.
penSeS or soliciting new business than Is Gllow
cd TO similar associations organized under the
Jaws Of Iowa. Ninth.--An associations which
have attempted TO absorb any other aSsocia
ton, either by reinSuriny or consolidation IN
any way, whicss- the attorney general contends
cannot b. legally done under the laws OF Iowa,
and have made assessments on the members
thus received, should be re 1uired &c treat such
members as their own original INT mbers and
pa7 the same amount, in case 81 death as their
pwD original members receive.