Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-02-27
TO EXEMPT THEM.
Movement to Exempt Building and
Loan Association From Taxation.
SAID IT WILL HELP THE POOR MAN
Committee Will Soon Take Up Buchan-
ANS Building and Loan Bill-Lit.
tie Doubt But That 1t Will
Pass the Legislature.

ans Building and Loan Bill-Lit.
tie Doubt But That 1t Will
Pass the Legislature.
[From Fridays Daily.]
Des Moines, Feb. 23.-(Special Core
spondence.)-It is probable that with
in a few days a bill will be introduced
in the house providing for the eXeinp-
ton from taxation of building and loan
and savings and loan associations. This
question was brought up for discussion
in the house building and loan com
mittee recently in connection with
building and loan affairs. Several bills
regarding associations OF this kind
were referred to subcommittee, and
the remainder of the session spent OH
the question of exemption. No action
was taken, but one of the members
of the committees after the meeting
said he expected to offer a Measure OF
this kind in the immediate future.
He argues that as the building and
loan associations are operated primar-
lily for the purpose of aiding the poor,
or those in intermediate circumstances,
it is not right to place a tax upon the
associations, thereby frightening the
time in which the investor may realize
on his Investment. The people who
take advantage of the building and loan
associations use their earnings to buy,
first, a lot for building, and later to
erect a house upon that lot. As soon as
purchased taxes are paid or the lot,
and as soon as built taxes are paid on
the house. The advocates of the ex-
emption idea claim this is something
in the nature of a double taxation.
Their strongest claim for exemption is
the fact that associations of this kind
were exempted in the levy of the in
states make no provision for the tax
The committeeman making this argu-
admit there are a great many associa-
lions which are a fraud and not OPP
Grated according to law. However, the
local associations generally thruout
the state, are certainly a great benefit
to the poor people, and should be cared
for. / realize that when 1 offer a
all over as a representative Of the as
sociations, but Verify believe my prin-
ciple right"
Buchanan's Loan Bill.
Three bills are before the building
and loan committee, and all have been
referred. Two of these bills are prac-
tically the same, and will be combined
into one substitute and reported for
passage. One was offered by Stewart
of Polk and the other by McGinn of
Clinton. They provide for the repeal
Of that section of the code which re-
quires that building and loan ~associa-
tons shall report to the auditor the
amount, number of shares, and value
of stock held by each stakeholder. 1t
is held by the gentlemen who offered
the bills and by a majority of the COM
mittee that this requirement. is merely
placing a needless a III the associa-
tons. 1t is held that the information
in no way is of value to the assessor,
as the stakeholder invariably informs
the assessor that he has a loan against
that stock. There is a general feeling
of distrust regarding loan and trust
companies in the house, especially
since Attorney General Remley'sb pin-
ion has been circulated, and it is al
together probable that the bill will be
opposed, and defeated when it comes
out of the committee.
The third building and loan bill is
that introduced by Buchanan of Wa
pello. 1t is expected the subcommittee
will devote a great deal of time and
study to this measure, as it is of great
Importance. 1t is thought a majority
of the building and loan committee
fovnr Tho Hill in {hn rooin h,yf 4ho,o
are several parts Of it that are liable
to undergo a change. The bill pro-
vides for the creation of a department
ment Of an inspector. 1t takes the
auditors Office and places it on an
Independent footing There is some OBJ
lection to this feature, altho not
it passes muster. The examiner is given
practically entire control of the build
ing and'loan interests of the state. He
is required to inspect each company
at least once a year. In the event of
his discovering a company of which he
is suspicious, he examines the books,
and If his suspicious are correct 80 no.
titles the board of directors. In twenty
days if the condition has not changed,
the examiner takes charge. He appoints
a %iquidating committee, composed of
three stockholders. This committee
winds up the affairs of the association,
and is given but eighteen months in
which to do it. Every month it is re-
required to report to the examiner.
This is the most Objectionable part of
the bill, and at the same time n of
the most commendable parts. 1t is
thought by some that eighteen months
are not enough in which to close up
the association, and that more time
should be granted. On the other hand
the year and a half provision certainly
does away with the slow process of
theft, which is nearly always the ac-
compartment of a receiver appointed
by the court. The Buchanan bill also
provides that two building and loan as
sociations may consolidate. At present