The Montgomery advertiser., 1901-08-20

Resolution No. e<e. and moves that it De postponed until after the article un- der consideration.
 There being no objection. 1t was 60 ordered.
 MT. Howxe--Mr. President. I rise to take a short time on this proposed amendment by the minority of this Committee. The mover, and the gen. tieman who has just preceded me in this matter. in speaking of this matter admit that the purpose of 1t Is strike at the Building and Loan Associations. In other words, the re- port In effect and intention Is made in order to abolish the Building and Loan Associations in this State. The question then, that presents itself. is as to whether or not these institutions are good in themselves. or whether or not they are evil. and such as should be a polished by the laws of this State. Now, from the remarks of the gem tlhman who has preceded me, it. Is very evident that he has been detailing woes and troubles that have arisen, by par Ties who have borrowed money from foreign Building and Loan Associations. As we all know there are two classes of these associations, who have been doing business in this State, those who are local and confine their business to the city, county or to the State, and those who are national in character and do business in different portions of the United States and in different States of the Union. In those cases, Mfr. President. and the reason why these hardships have arisen, 1t Is very ap- parent to my mind, as have had some experience in the matter. The foreign companies have been very Unfortunate. They have had to rely upon local par ties in making thesr loans. and these parties have not been careful in their valuation of properties, consequently the losses of foreign corporations have been very enormous, and of course, their revenues have been greatly di- minishd, and the expectat on of the stockholders and the borrowers in those companies have been greatly defeated and disappointed and therefore the maturity of their loans and their stock has been deferred far beyond the time 1t was expected to mature. Another reason parties have taken out loans In those companies, and have obtained far more value than the property would justify. and have become defaulters. know from personal experience a num- Der of parties who borrowed money from these associations on their prop erty who never paid another cent after
 
 ment, who absolutely discontinued from that moment, paying a single dollar upon Ehe stock which they had sub described doubtless, because they had failed in the first place. they had all about that their property was worth, when they obtained the loan, and in the second place. many obtained a loan. had no way of meeting monthly payments. and therefore they defaulted, and suits arose, litigation began, and Of course these contracts bore heavily upon them under those circumstances. Now, the nature of the Building and Loan Association requires that every stockholder should be prompt in the payment of his dues. If he Is. why then he will often receive some benefit from 1t. If not, then hardships come In and 1t is that class of people my friend speaks of this morning in his address. Now we have the Falls case. where a party borrowed from a cor poration a large sum of money on a vacant lot and he made no more pay ments. After short time he stopped his payments. The mortgage was at- tempted 70 be foreclosed, and this lit- igatlon was produced. Of course the Supreme Court In passing upon this matter. the able Chief Justice Stone argued at length upon rhe principles Of these corporations. Unfortunately. to my knowledge that case was not properly presented to the Supreme Court. The great defect in 1t being that the certificate of stock which this party held In that corporation was not in evidence in the case, and that case failed to show that this party was q stoekholder in the corporation, conse- quently Judge Stone based his opinion uron the fact that he was not a stock holder.
 The Prcsident-The gentleman from Jcherson will be entitled to the floor this afternoon.
 Thereupon the Convention adjourned.