Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-03-13
Senate Committee Today Re-
ports a Bill Regulating
Business.
THE VOTING MACHINE.
House Committee ON Elections Reports
Favorably Bill Providing for Their
Use-Treasurer Herriott For.
wards an Explanation.


Des Moines, March 9.-(Special Cor
respondence. )lThe senate committee
on building and loan this morning re-
ported in that body a bill to amend
the laws regulating the building and 4
loan business. On account of the fight
which has been made against this bus
mess in the last few months and es-
pecially since the opening of the pres
ent session, and especially in view of
the late opinion Of the attorney gener-
al in which these associations We're so
bitterly arraigned as robbers of the
poor, the measure as reported from
the committee is of especial interest.
The bill begins by repeating chapter
IS OF the acts of the twenty-seventh
general assembly, the present building
and loan statute; then it proceeds to
enact substitute measure. 1t pro-
vldes first that no guaranty, paid-up
or single payment stock shall be issu-
ed; but on payment of the par value
paid-up stock may be issued limited to
an per cent dividend; but such stock
shall not be entitled te<yote.
Expenses shall be paid from profits,
and shall not exceed 25 per cent of the
receipts from premiums and interest
during the first two years, and there's
after not to exceed rs per cent; ex-
cept that when a new association is or
gained the expenses may be paid the
first year from the money received for
stock, not to exceed per cent of this
amount. Money thus paid in the first
year shall be restored to the credit of
the stock paying it., during the second
year.
No fines or forfeitures shall be inn
posed for failure to pay dues as pro
yided. nor shall fines be collected ex-
,ceeding per cent per anfum during
the time of default. On withdrawing
the stakeholder shall receive not less
than he has paid in, unless losses of
the association have wiped out the
profits, in which case the withdrawing
member shall be charged with his
share of the losses. and no more.
Money must Me loaned to members,
at not to exceed 6 per cent annually;
but i'll case outsiders offer better rates,
they may be given loans, secured by
realty of double the value of the loan.
In case of foreclosure, the borrower
shall be charged not to exceed 8 per
cent interest, and shall be credited
with the total of all payments on his
stock; but if the. association proves
losses which have impaired the value
of stock, then the borrowers equitable
share of such losses may be added to
the judgment against him
The bill provides in detail plan for
liquidating or consolidating associa-
lions. Three-fourths of the stock may
vote to liquidate, in which case its
mortgages may be assigned TO any 9TH
er organization willing to carry them.
In case the stockholders are unable to
agree on the details of their liquidat-
ing plan, the book value of each share
holders stock shall be computed, and
the distribution made in proportion
to these several values; and in case of
loss, the loss shall be distributed in
like manner, pro rata. In case of con-
solidation, the guaranty stock may
vote to consolidate the details of their
plan must be approved by the execu-
tive council. After being approved by
tA0 GACSutlSO SOuuSlls lnC pau llluSu
be approved by three-fourths of the
stockholders of the consolidating as
sociations. In case of consolidating a
company in the hands of receiver,
the receiver shall act as directory
board, and the plan must be approved
by the court. All associations now
doing business in the state must amend
their articles. in conformity with this
law. In case 4 building and loan as
ISOLATION reduces its interest rate be-
low per cent, then all borrowers who
have borrowed previous TO the change,
shall be entitled to the reduction just
the same as new borrowers. An asso'
citation falling in ninety days to amend
its articles shall be closed by the at
torney general. The executive coun-
ell shall have power and it shall be its
duty to revoke the certificate of auth
ority of any association to do business,
if its plan shall be deemed unjust OF
oppressive. The state auditor shall
in his report publish detailed
statement of expenses and salaries, in
GLIDING the names and salaries of the
several officers. No association in an
other. state shall be admitted to Iowa
unless its plan conform to this law
Any person soliciting or selling stock
in a non-authorized company or asso-
citation shall be fined from $50 to 5000,
and committed to the county Jail til
the fine be paid. Section IS is as fol
lows:
All loans, contracts and mortgage!
which are affected by the repeal O.
chapter As, laws of the twenty-seyentl
general assembly, are legalized SO fal
as to permit recovery to be had there
on for interest at the rate of pc
cent, but at no greater rate, and moth
ing contained in such contracts shall
be construed as usnrions so as to worl
| a forfeiture to the school fund.
The bin has a publication clause at.
tached, so that if it passes it will be
| the law as soon as published. 1t i
considered a drastic measure in many
ways; YET the provision that associa
| tions may consolidate is Il concession
for many have absolutely opposed this
The present law allows interest a
high as IL per cent to be collected b.
/ these associations; this is cut to s pc
cent, but the building and loan peopi
claim the IL. per cenS law has been o