Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1900-02-23
nv nYsTANDHR PUB. co.
I. HARD AFTER THEM.
Remley Pays His Respects to Iowa
Building and Loan Associations.

Remley Pays His Respects to Iowa
Building and Loan Associations.
DIES MsxNks, Feb. 2l.-Attorney Cen
eral Remleys opinions regarding the
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 a
request from that body made over a
week ago. They are even more sweep
ing thsn has been expected. Accord
ing t. Mr.. Remley there are many cor
porations which may be classed under
these heads now doing business of an
Illegal kind in the state and swindling
the poorer classes of people every day.
Mr.. Renley does not point directly at
any particular corporation, but the
elemoats OF his charges are SO sweep
ing and Of such 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-
ion hat neither the state executive
council nor the attorney general has
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 dong business in
the state as to the larger associations
where stock is purchased in large
amounts by capitalists who desire to
obtain exorbitant 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 at the class Of
companies known as the farmers
nutuals, and some of the larger life
insurance organizations. Many of
these companies, according to Mr..
Remley, are conducted in decidedly
loose manner, thus bringing all the
Iowa companies into disrepute. The
recommendations of Mr.. Remley for
changes in the laws explain largely
the fault he has to find with the pres
ent methods governing these corpora
tons.
His recommendations in brief relat-
ing to building and loan associations
are as follows:
First The law should forbid any part OF the
principal paid in by the stock holder to be used
Tor expenses. Second. There should be o limit
upon the expenses Of the associations. Third.
AL guaranteed stock or preferred stock under
any and all names which receives fixed divi-
should be eliminated The power to impose
fines and forfeitures uTOn persons who fall to
pay the inStallmen,s on their stock ought to be
removed. Fifth. The exemption of building
and loan associations from the law CT usury
works . hardship which the former general
assemblies could not have seen, in Mr. ken.
ley's opinion. Sixth. The executive council
ought to be tven hensy lGoq
izing the association to do business. Seventh.
Provision should be made On which money
paid on stock by the party who has borrowed
as an absolute payment on the money Borrowed
together with the profits. II any, credited on
such stock. Eighth. Some provisions should
be made to. enable associations to go into vol
untary liaui laton, with suitable provision for
The pro cotton Of tie borrowing member. 1t
might b e well also TO authorize the asSignme mt
of loans made by the Ii Iuidating association to
some association of similar character, sub.
ject TO the rights of the borrowing member to
have the amount paid on his sock credited Oh
such loan, or to permit two or more assoc atloIs
to consolidate b. three-fourthS vote OF the
stock OF the respective as ociat1ons, on terms
which the exccu i've council or S me OH er OF
the tate should approve as equitable 10 all CON
cerned Ninth. HAPPIER 8 ofthe laws q the
twenty-seventh general assembly. should pc
repealed. It's effect was to make new and diff
ferent contracts for those affected thereby,
which has worked o hardship in many instances.
In regard to the remedies needed in
the insurance code, the following rec
are made:
First.-All articles OF incorporation of CON-
panies and associations Incorporated under the
laws Of this state, us well as those incorporated
in other states, should be submitted to the aud
1tor of state and attorney general FOR their up
prova1, and these officers be authorized to dis
approve all plans which do not provide proper
safeguards for the protection OF pc Icy holders
make assessments on the members. or by 50
called safety clause reserve the right to make
assessments, should by statute pc prohibited
from issuing so-caned paid-up policies. limited
payment policies and from accommodating 1und
TO be paid back to the members as dividends
distribution or surplus, or endowmentS in any
form Third.-Al forms OF policies should be
submitted to the auditor lor nus approval ana
which do not state on the face OF the policy ull
the terms. conditions or warranties by the
breach of which the policy Is voidsd and to re-
su1 With this provision. Fourth. policies
which require the payment Of q fixed premium
should be made non7forfeitable after two annual
payments. F1fth.-Any company or association
which publishes its literature with false and
misleading statements as to the nature Of Its
business should forfeit its right to do business
In the state. Sixth.-The section OF the code
requiring medical examination OF oil members
Of associations should be made to apply to level
premium companies. Seventh.--No mutual
comDany or association should be permitted. by
IN amendment OF articles OF Incorporation to
increase the premium or rate Of assessmcnts on
existing policy holders. Eighth. No stipulated
premium or assessment company incorporated
under the laws of another state should DC per-
mittcd TO do business in iowa II It uses greater
Der cent OF the premium or assessments for OK
penSes or soliciting new business than Is allow
ed TO similar associations organized under the
laws OF Iowa. Nintn.-Al associations which
have attempted to absorb any other assCci;-
ton, either by reinsuring or consolidation in
auy way which the attorney general contends
cannot b. legally done under the laws OF Iowa,
and have made assessments on the members
thus received should be required to treSt such
members as their own original members and
pay the same amount, in case OF death. as their
own original members receive.
FIX DATE FOR CONVENTION.