The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-08-16
NicOllet county.

Inc amount loaned was $47U, UUU. l
have not the exact data of the amount
loaned in the first liz years. but it
was surely as much as the last 10
years if not more, and all of it in this
county.
At least So per cent of these loans
were made on new houses and other
buildings, hence think my estimate
very conservative, when 1 say that at
least $3.50, 600 has been added to the
permanent taxable value of the county.
The large proportion of these build
ings would never have been built if
it had not been for our association.
We have at present mortgages on 1919
pieces of property in this county, and
in Nicollet county, nearly all on small
homes and business property.
The association has been managed
| conservatively and cheaply, our losses
have been small and far between. Still
no loaning can be done without some
losses, and in our case the losses have
to come out of the depositors, which
reduces their income.
And on top of that to stick tax,
regardless of whether they really own
the money or not, is to my mind too
unjust for enlightened people to coun
tenance very long. And we expect,
and have right to expect. justice at
the hands of you gentlemen.
The Mankato Mutual Building and
Loan association cannot do business,
and must go out of business, if this tax
stands.
You will see by letters. which will
be read to you from other associations
which were taxed out of existence,
where we are going.
If this tax stands, it will simply be
the first blow to crush out another in
stitution which is run for the poor to
get homes of their own, and enable
the poor to lay up few cents of their
own for a rainy day, and thereby
help the rich, the banks who pay
scarcely anything on deposits. The
rich loaning institutions from other
states as we'll as our own, who pay no
taxes, and can't be made to pay any
taxes
reiterate positively. that we can
not continue to do business if this tax
stands, and we therefore ask you,
gentlemen, to reduce the amount to
what it was last year, and thus save
to the county one of the grandest in
situations in the county.
Yours truly,
GEORGE PASS,
President of Mankato Mutual Build
ing and Loan Association.
Mr.. Hughes also read the letter
from the other building and loan as
sociations of the state, showing that
only one of them is taxed as it is pro-
posed to tax the Mankato company,
and that it is as consequence wind
ing up it's affairs. He also read pc
tition from members of the association
asking for a reduction of the assess
ment
Mr.. Hughes made the point that the
so-called stock of the association is
really not stock but certificates of de-
posit, transferable and redeemable
at any time. Over Sc, 600 had been
withdrawn since May list. Nearly
1, 900 buildings have been put up in
Mankato with money furnished by
this association. Deposits are limited
to 50, 900 for any one person. The as
ISOLATION has 400 to 500 members.
Other associations are not taxed, and
Mr.. Hughes asked whether the county
board was going to tax this one to
help support the rest of the state.
Jno. N. Hall said that the associa-
ton is doing business similar to saw
ings banks, which are not taxed, but
makes speciality of loaning money to
poor people to build homes, which the
banks cannot do. 1t now has 515 loans
outstanding, nearly all in Mankato If
it went out of business it would be a
hard blow to these borrowers, who
would have trouble to pay their loans.
Fl. P. Christensen presented "a petit
ton which he had circulated among
those not directly interested in the as
ISOLATION. Of the 1876 seen, 11S had
signed. He said that he would like to
see two such associations. If this one
is crowded out, then outside associa-
tions that are not taxed will establish
agencies here and dishonest ones will
humbug the people. Our own honest
one should be protected. -
W. N. Plymat, who also had no per-
sonal interest in the association, ap-
pealed to the board not to use the
power which it has to force the society
out of existence, as the proposed taxa
tion would do. He said that the board
had power to modify the assessment
the same as it had done last year.
Not over one-third of those who had
| received assistance from the society to
build homes, could have secured
| money elsewhere to build.
NJ O. Sundt, DR.. M. B. Wood and
Geo. B. Owen followed.
The board will probably take no &C
tion today.