Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1901-12-19
RAKEs LOAN ASSOCIATIONS.
Banking and Insurance Commissioner BEETLE
Scores the Delinquent ones in
Annual Reports.


Scores the Delinquent ones in
Annual Reports.
Building and loan associations which
fail to comply with the requirements OF
the law in conducting their business came
in for a severe scoring at the hands OF
Banking and Insurance Commissioner VIM.
BEETLE, whose report has just been submitted
to Governor Voorhees,.
The total number of domestic associations
in the State is 364, as against $50 last year.
There were II organized during the year,
while 10 ceased operations, reorganized
under the laws of another State and were
dropped from the list upon its being ascer-
tanned that they were corporations of a
different class.
GROSS ASSETS $50, 891, 594.
The several associations of all kinds in
the State have combined gross assets
amounting to $50, s91, 594, which is an in
crease of 81, 766, 544 over last year. The
stock subscriptions paid on the shares out
standing aggregate 500, 5s4, 2s4, an increase
of 81, 81, $40. Other liabilities show a
total of So, 1877, 973, an increase of 1854, 1913.
The total profits or surplus apportioned
and unapportioned, are $9,57 ,357, which
IS 500, 791 less than last years figures.
Adding together the stock subscriptions
md profits or surplus gives $40, 1853, GAL, as
che total net assets or net worth of the
associations, the increase being 81, COL, Sal.
There is an average increase shown in the
items of real estate owned of $3.50, 031.
The per cent. of real estate held by the
''local'' associations remains at 5; that of
| the Estate" associations shows an increase
from Is to 10, and that of the national"
concerns decrease from to 6. The total
number of foreclosures reported is 80, or
80 more than last year. In the ''locap'
associations the per cent. is %; in the
Estate" 8, and in the national 20.
The serial plan associations number 298,
or about 1877 per cent. of the total, being
four more than last year. There are 80
permanent or perpetual associations, de-
crease Of three, and ten terminating asso-
Citations, being also decrease of three.
The gross premium plan is in use in 185,
or 81 per cent. of the associations. Last
year the number was 1872. The INSTALL
ment premium associations number 134, or
80 per cent, being an increase of five
associations. Nine operate both plans, an
increase of one, and thirteen the same
number as last year, have no premium plan.
The report is of especial interest at this
| time on account of the recent developments
in connection with the Washington Co.
operative Bank, of Newark, for which a
receiver was asked last Friday week. The
report shows clearly how such conditions
may be brought about when inscriptions
persons gain control of an association.
| Among other things the report says
DUTIES OF ASSOCIATION.
"Chapter 100 of the laws of 1899 makes
it obligatory upon all building and loan
associations to return to unbalanced men,
bers, on withdrawal, the full stock paid by
| them, less fines and their proportionate
share of any loss, but without deduction
for operating expenses; and, after one
years membership, a reasonable share OF
the profits, in addition to the gross stock
payments, must be paid to the withdraw
ing member.
'In enacting this law the legislature
placed its stamp of disapproyal upon the
practice followed by some associations of
using for expenses portions of the moneys
paid in on capital account, which enabled
inscriptions managers to profit at the
expense of the shareholders and become an
;ntolerable abuse.
THE practice b. TO has not been
abandoned altogether, however, as should
be done. Some associations still continue to
make expense deductions from payments
on shares taken prior to the date of the
approval of the act of 1899, upon the
theory that it is not applicable to contracts
of membership previously entered into,
and, while this may be the case, every
association should observe the spirit, as
well as the letter, of the law, and entirely
discontinue such deductions from payments
now being made on both old and new
stock. No association can afford or should
want to stand in the position or adhering
to methods that the law condemns"