The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1901-01-11

the wisdom of their adoption. They
should not be abandoned until it be con
clusively shown that better can be sub
stituted.
Recommendation.
There are, however, some matters
touching the welfare Of the state which
may well be the subject of your delib-
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 are 342 in number,
and their net assets or net worth was
| 1861 $3.50. of which more than $780,
| 600 represented profits to the sharehold-
ers. The so called local associations
were paid last year on account of stock
more than $S,000,000 and the state and
nationals nearly $1,500000. In addition
to these sums nearly $3000,000 were
paid to both classes for premiums, fines
and fees, making the total amount re-
ceived by them in one year more than
$4,000, 900.
In the 16 state and national associa.
tions the payments for salaries, com
missions, etc, .were S19S, 637, and in the
326 local associations they were S147.-
099. The ratio of such expenses to the
total receipts in the former was slightly
over 10 per cent and in the latter about
la per cent. Payments on account OF
interest. premiums. fines and, fees consti-
tute practically all the items of earnings
Based upon these, the expenses on sal
airy and commission account average
about per cent in the local and over "a
per cent in the state and nationals.
1t is not herein intended to adversely
criticise associations which are conduct
ed fairly and honestly and with 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
unjustihably increased.
The employment of paid agents to So
licit business and the maintenance of
costly establishments, with corps Of
high salarled officers and managers, are
features OF some OF the associations.
These clearly nave no place IN the true
building loan scheme.
In some OF these associations there
are SO eallee expense fund contracts"
THESE are contracts made between the
associations ana one or more OF ITS 9TH
GERS or managers whereby, In ADDITION
TO their stated salaries, the latter re-
celye certain proportion OF the pay
ments mace oy the members,
In one instance the cohtfac' proViueo
for the payment to the president of all
premiums paid on the sale of certain
class of stock and commission equal to
) 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 mas desired to withdraw or apply
the value of his shares in part payment
N~A>% NN%etN
to his credit has been reduced by ex-
pense deductions to 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 or articles
of association, the true meaning and eff
feet OF which have been misunderstood
or intentionally mlsrepresented to the
joining member in the jealous effort to in
crease mem nprShin
AS result of these methods there are
frequent instances OF hardship and in
Justce. lhey are so clearly wrong IN
principie ana injurious IN their conse-
quences tnat legislation ought to be en-
ac1eu 10 eHectualiy break them up.
Inree assoclauons nave already been
paced IN the hands or receivers for IN
soiVency' the result OF excessive expenses
not ssAalles' e'c' eoupieu Win pau M
Again. the shareholders, maa+;nus IN
the state and national assoc;at;ons can-
NOT in tho notnre of +ba 600 no +r,,i,
representative Tho mambars are scat
terad throughout +ba s+ato fand oIso
vbara il tbo no+;onal assoe;.t;o,,s, 90
os rnla cannot afford - 49, AZ 49,,
mr. incnr tho ovnonsa ~ a++o,,do,aa 49,,
Tho homo oft;ca ,,,horo thoso ,,snn4;. upol
nsnaIly bold Ia,.oo ~; nn;t,, % 49,
sharaboldors ora +haro so.o4S - w
bv nroyv rsuall, MA ~ "a e $500 80
d;ractor -. &C.,. s. su ~
49, 49, - ,'-, 80 "sso ..-''i
800 oas;ta, 80 ;, yr,' ~ petna
~, =, - ~, s % oniy neiu
o,,d s,,ah 80, - .ns Doa,u ~ selien'
rro,.o 80 -, t t,1so 20 'ney may az
81, X aIe.tr.s 80; 80 ~ ,ioiu ny o'oSA