The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-01-09

ernOr Odell of New York
was one of the most practical and
business-like state papers ever sent to
an American legislature, and a care
full reading of the message confirms
this judgment. Mr.. Odell laid his hand
on well-nigh a hundred places where
extravaganza prevails in the use of
state funds and showed just how this
could be stopped. 1t is estimated that
to exceed s1,000,000 in little leaks We're
pointed out in his message. but in its
treatment of more general problems
the message is equally efficient. The
governors reference to certain abuses
connected with some savings and loan
associations will have pleasurable in
terest for many local victims:
On the part OF some Of the savings and loan
associations in the state, among those which
are classified as nationals there has been
Il tendency to engage in business which brings
disaster. Beside the payment OF extravagant
salaries to their officers and waste of money
in maintaining luxurious offices at a large cost
for rent, abuses OF the gravest character obtain
in some of these associations. Real estate owned
by officers individually is purchased by such as
sociatons at prices advantageous to the manage
ment, but ruinous to the institutions Specu.
ative dealing is undertaken In real estate, which,
even where the intention is honest, is almost
sure to cause loss and embarrassment Asso-
Citations are given over to the control Of few
men by agency contracts under which all earn
ings above an agreed percentage are taken by
the officers in lieu OF salaries; and it goes with
out saying that the managers realize their pro-
portion regularly in cash, while the share
holders generally get only paper profits. With
drawals are paid upon a basis destructive to the
hopes and interests of the persistent members
These and similar methods which, when not ac.
tually dishonest, are at least unwise and unsafe
cannot but wreck any institution which persists
in employing them, and the record for the past
year shows that several associations were sacr.
feed to them, having gone into liquidation
through a receiver or otherwise, and subiecting
many innocent investors to losses which mean
embarrassment and hardship. Such practices
ought not to be possible under the law and
legislation is recommended which will serve to
prevent them.
There is also a reference to public
utilities and how to prevent their
overlooking with bogus capitalization
which reads as If it might have been
written with the Scranton Railway
company for it's text:
During the last few years there has been con.
siderable discussion in regard to the municipal
ownership Of public utilities, UndAlbtedly cities
have been benefited in the past from competi.
tion between private corporations. which for a
time had the effect OF lowering prices which
competition, however, usually results in a com.
bnaton of such competing interests Then
prices are raised again in order that dividends
may be made upon capitalization far in eX-
cess OF that warranted by business possibilities.
Then it Is that dissatisfaction arises and the de-
mand for municipal ownership is most urgent.
This unsatisfactory condi,.on could have been
avoided had the power TO authorize the for.
nation of a new company been LOGGED in some
| competent authority. This subject Is one de.
| serving the wisdom and attention OF men who
may he specially charged with the duty OF I'm.
| vestigating the desirabilty for the creation Of
such corporations, as well as the question
| whether they are created for the purpose Of
threatening or attacking existing corporations OIL
| created in their interests. The Railroad COM
| mission, II charged with this duty, could readily
| determine whether there was a necessity for an
| other company, or whether the desired result
could not be accomplished by enforcing a re-
| duction Of rates or compliance with other rea
| sonabe requests Of citizens recommend
therefore. that gas and electric lighting com
| panes and the questions relating to their or
| ganzation, administration and control, shall b,
| placed IN the hands Of the Railroad commission
| care being taken TO provide such limitation or
| their discretion as will secure due regard to th,
| wishes OF every locality and prevent the commits