Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1901-01-10

future. We cannot safely assume that
the sources of our income will be always
SO bountiful. The liberality OF the state
should be measured by actual wants.
Wisely generous it should be, but only in
directions strictly limited to the legit-
innate needs Of government.
Reducing burden of Local Taxation.
A balance reasonable in amount and
of such size as conservative policy
demands should be retained by the
state. All beyond this should be wisely
used in reducing burdens of local tax
alton. The manner in which this can be
done is hereinafter indicated, and your
favorable action in accordance with the
suggestions made with reference thereto
is asked.
The purposes and field of work of the
various departments Of governments Of
the state, and of its boards and COM
missions and institutions, have been
described with minute detail in messages
previously communicated. With these
you are sufficiently familiar, and
particular description thereof at this time
is for that reason deemd unnecessary.
a full account of what has been done,
and of prevailing conditions and require
ments, are fully set out in the several
reports which will be laid before you
They furnish all information necessary
for your guidance. In the main, they
disclose an excellent state of affairs and
good results accomplished. This con-
dition is due to the zeal and efficiency
of those who are charged with the duty
of administration. The promotion of
public, rather than partisan, interests
seems now to be the standard of con-
duct in public service, and as result
thereof great benefit has come.
Beyond what will be required to pro-
vide for the ordinary affairs of the state,
there seems to be no pressing need for
any great amount of legislation From
one point of view, this is Il condition
| upon which we are to be congratulated.
A people prosperous and satisfied with
| things as they are do not ask for many
laws. Preceding legislatures seem to
have established nearly, if not quite, all
of the reforms and changes for which
there has been any urgent demand.
1t is best to let well enough alone.
Policies and methods of government
which have been recently inaugurated
are entitled to a fair trial in order to test
the wisdom of their adoption. They
should not be abandoned until it be con
| clusively shown that better can be sub
stituted.
Recommendations.
There are, however. some matters
touching the welfare of the state which
may well be the subject of your DELHI
erations. Your attention to these and
to the recommendations respecting the
same is invited and your careful thought
and favorable action thereon is urged.
1t is gratefully remembered that the
suggestions made to the preceding legis-
lature were accorded a generous con-
sideration by that body.
Building and Loan Associations,
| Wisely conducted, these associations
encourage and make possible the build
ing of many homes, promote habits of
thrift and economy and afford to the $780,
131 shareholders mainly persons of
small means-an opportunity for the
profitable investment of their earnings
These associations arc 342 in number,
| and their net assets or net worth was
| SAT, 561 800, of which more than $780,
900 represented profits to the sharehold-
ers. The so called local associations
| were paid last year on account of stock
more than SS,000,000 and the state and
nationals nearly $1,500,000. In addition
to these sums nearly $3,000,000 were
| paid to both classes for premiums, fines
and fees, making the total amount re-
| ceiyed by them in one year more than
$12,500,000.
| In the rs state and national assoca-
| tons the payments for salaries, COM
missions, ETC., were S199,637, and in the
326 local associations they were $147,-
| 099. The ratio of such expenses to the
| total receipts in the former was slightly
over 10 per cent and in the latter about
IA per cent. Payments on account of
interest premiums, fines and fees consti-
tute practically all-the items of earnings
r Based upon these, the expenses on sal
| airy and commission account average
about per cent i'll the local and over 81
per cent in the state and nationals.
1t is not herein intended to adversely
| critieise associations which are conduct
ed fairly and honestly and with a due re-
| gard to the safety of their members, but
| it is apparent that any system which in
wolves heavy expenses works to the dis
| advantage of the shareholders Their
| just returns are diminished, and the
burdens which they have assumed are
unjustifably increased.
The employment of paid agents to So
| kcit business and the maintenance of
| costly establishments, with corps of
high salaricd officers and managers, are
| features of some of the associations.
These clearly have no place in the true
building loan scheme.
| In some of these associations there
are so called expense fund contracts"
| These are contracts made between the
associations and one or more of its Off
|
to their stated salaries. the latter re-
csive a certain proportion of the pay
uents made by the members.
| In one instance the contract provided
for the payment to the president of all
premiums paid on the sale of certain
class of stock and commission equal to
3 per cent per annum ON all stock pay
| ments made by the members on all class
| es of stock
! Not only have the earnings been ex-
| hausted in expenses, but the stock pay
ments have been drawn upon to meet
| the drain. Consequently when a MEM
Der has desired to withdraw or apply
the value of his shares in part payment
| of his loan he has found that the amount
| to his credit has been reduced by ex-
| pense deductions to a sum much below
even what he has paid in as dues on
his stock. This has been done apparent
ly by authority of the bylaws OF articles
of association, the true meaning and eff
feet of which have been misunderstood
or Intentionally misrepresented to the
| joining member in the Jealous effort to in
crease membership.
AS result of these methods there are
frequent instances Of hardship and in
| justice. They are so clearly wrong in
principle and injurious in their conse-
quences that legislation ought to be en-
acted to effectually break them up.
Three associations have already been
placed in the hands of receivers for in
solvency, the result of excessive expenses
for salaries, etc, coupled with bad in
vestments.
Again, the shareholders meetings in
the state and national associations can
not, in the nature of the case, be truly
representative. The members are scat
tered throughout the state land else
where in the national associations and
as a rule cannot afford to take the time
or incur the expense of attendance upon
the home Office. where these meetings are
usually held. A large majority of the
shareholders are there represented only
by proxy, usually held and voted by
director or officer. Some associations
| have what is generally termed sperma-