The Montgomery advertiser., 1901-08-20

| hara eoatruo(s kAvs beso ma1d6 61 then, and that nnany C thom hav1 koue under by reason c u1GmanA0o- meut. 10 thse any reason Nhy VI shcuidl condemn the banking syDtomg It c the same way with other inDtt~ tutions, with land companies for tu. stance. Some of them heve ben mls- managed. yet you do not condemn the good because of the evil produced by some.
 we should not condemn an instttution of such vast importance as these are shown to be. It is now the question what will be the effect of your aetion here? What is going to be the sffsct and who will be affected by itf Why, we have in the State from twelve to fifteen local associations. There aro
 three In Birmingham. two In the city of Montgomery. one in Decatur, two n Selma, one In Cullman, one in Beese-
 mer. one In Tuekesce, one in Avonds1e, and perhaps one or two of other smAll institutions in the State. The people
 invested over . million dollars in these
 institutions, and this act in this Con-
 stitution absolutely Abrosxtes every
 one of the institutions. They are
 bound to 90 to the wall; they cannot bs maintained, and the system is such that if this act is passed, they are bound to up. Take now an instance where tho assets in this State amount to over c
 million dollsrs in that way. There h
 In the city of Birmingham one institu-
 tion which has In force SLeoeOoo. one
 of these local institutions. They have
 made total Ions of 3l,too, 900. They
 have members who have cancelled their
 loans to the extent of over t7oo.ooo. and
 In cash paid members In savings proilts and matured stock of over e10o.oeo. end have aided la building hounss for tho mingham. but the company has ope. rated in different towns of the State. and have aided the people Of AlabAuaa to January lst, 1901. to the extent of q, 100, 900 In loans for buiidink hosnee and paying or existing mOrtgAges, and through it's aid, members have paid for
 their homes to the extent oe e1eo. .oo0. and in Jefferson County alone last year this Association furnished money for build. ing over Sl6o,ooo In homes. Now, that is one of the institutioAs you are called sage of this section to this Article. and, besides that. these institutions repro. sent . capital of over ti.ooo,00o which you win destroy. Reports show they have assets of over 1l.eoo oeo. Al I stated just now. If this ordinance is passed. these concerns would have to go Into liquidation. Necessarily so----
 Mir. oates-Did not the Legislature know, and everyone else. when they were chartered, that 1t would require more than 8 per cent to run themf
 Mir. House--C Certainly they did.
 Mir. Considering the expense of maintaining the institution. per cent would not pay men for investing their capital in that way, and, there. fore. it was not any disappointment on anyone.
 Mir. Howxe--None in the world. The Legislature provided in the Act that I had before me. that they must pay nom borrowing stockholders . per cent there arc two classes of stockholders. one non- borrowing and one borrowing. The on-borrowing Is the one who fur. nishes the money and expects return which the statute has fixed at . Dsr cent. Now, how will they earn that with their expenses7 The Legislature recognised. as my friend suggests, and provided. that the interest shall not exceed 12 per cent. They are limited to t3 per cent. and yet my friend over there. the delegate from Jackson. (dr.
  little fine of 2 per cent extra. Now, he would have you believe that is an ad- ditfonal 2 per cent. The law says it shall not exceed 2 per cent of arrear- ages. The arrearages do not exceed from $ to $1o.
 Mir. Proctor--suppose you were to borrow $1o.oo0, the monthly payment would be $1T0 What would the ar rearage be in the sl0.0o0 ioanf
 AT. vssnss1A AAnAfA Vnnff the amount of premium paid every month. If we paid elo0 per month and fell snort on that payment, 2 per cent of the ar. would be s2.
 Mir, Proctor--Two dollars per month";
 MT. Howxe-That is all that means. not per cent on the deDt. as yQu would have the Convention believe. That is necessary to make the stoear hoiders prompt in their payment for their benefit that it is done. It is not for the benefit of the cooperation. hut for the sfockhoider himself if nc makes these payments regularly oy the ynonth. These are big institutions. They are not capitalized by the payment of any large sum in at once, but by small rnonthiy payments made by the stock" holdArs both the borrowing and nons borrowing. If the borrowing stock holders would pay regularly the amount OI HIS uuc So enot enSy N Into the general fund. he will gek the benefit of it. Every dollar ne pays ln Is used for his benefit. This interest ne calls usury here, and his fines and dues Are all embraced in the money loaned put for his benefit. and the money nc puts in there is loaned out and rom month to month accumulates with the amount of loan that he has made with that company and 1t cancels his stock.
 The Pfesident--The time or the gen- tleman has expired.
 MT. Cofer--t am surprised that the gentIemsn would make any such state- 7 meat. 1t seems to me that about three weeks or . month ago. from the same ocality, there came to this Convention l hue and cry upon the part Of the peo- pie in that locality against certain cor which, if compared with tne the gentleman now de- 'ends. shows that the earnings allowed ,y law and earned by them are greatly isproportionate. There Is cry xainst the railroads of Alabanaa. and f you will examine the history of the -ailroads you will Ind that the average ,arnings of the railroads are not per ,ent per annuna, and here Is q corpora ion authorized by law to collect from he people of Alabama anywhere from a to 3S per cent. Now, I insist. MT. that if there ever was q le- rally authorized institution in the State if Alabama whose purposes were that ,f ffeecing the unsuspecting public. is ,aa been the organization and mandp- iiltion of the building and loan asso- ,iations. If there ever was q crowd or