Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-04-02

Superintendent Kilburn of the New
York state banking department on
Building and Loan Associations has
made his annual report to Governor
Odell. As the Building and Loan
scheme has met with good success in
Hawaii the following excerpts from
Kilburn's report will be read with in
terest:
Total Assets Of Associations.
The total assets OF the associations
Of the state as reported amount to $56.-
726.9i1. The total assets reported by
the national associations amounted to
!2l, $50 ,456. which includes, however,
sS,3G9,426 of prior liens or assumed
mortgages The total assets of the To-
cal associations were $34, 1896, ass, and
only 1921 ,O4O of prior liens are included
in this amount. The total operating
expenses OF the thirty-eight national
associations, however, amount to $685.
927. while the operating expenses OF
the 2SS local associations amounted to
only s2S2.662. The operating expenses
of the national associations, therefore,
were over 7-10 per cent Of the report.
ed assets, and the corresponding eX-
penses OF the local associations but
slightly in excess OF $40 Of one per
cent.
Advantages Of Locals.
As so large a proportion of the assets
L.. aaaAataNfnnu hnuBaNFar
consist OF prior liens, fairer basis Of
comparison is to consider the percent
age of operating expenses to accumu-
lated capital, consisting Of the dues and
dividends credited to members. The
dues and dividends credited to men,
bers OF the thirty-eight national asso-
Citations amounted to sl1 ,Sl6, and
the accumulated capital of the local
associations to s3O,s96,23O. Upon this
basis the operating expenses of the
national associations were nearly 5%
per cent of their accumulated capital,
while the operating expenses OF the To-
cal associations were only little over
nine-tenths of one per cent.
Source OF Profit Receipts.
The principal profit receipts of such
corporations are the interest and prem
ium paid by members ana the rent re-
ceived from the real estate taken by
them upon the foreclosure or settle
ment Of mortgage loans. From these
sources the national associations re-
ceived 81 ,394,756 and the local associa-
tons s2,051 ,2S1, so that the ratio OF
operating expenses to the principal
profits receipts would be over AZ per
cent for the national associations and
less than IA per cent for the local as
sociations.
During the year 1899, seventy -four
associations paid to the holders OF ma
tured stock, however, the sum OF ST.
774,557 During the year 1900 eighty
seven associations made correspond
ing payments to the amount OF $2,124,-
9Sl, and during the year 1901 these pay.
ments, made by 1903 associations,
reached a total OF s2500,S13. OF this
amount s2,32s,77S was paid by the To-
cal associations.
avn ~ 10 lHdI
the same period the associations OF this
State paid to Withdrawing members
and the holders Of cash dividend stock
$11,Sl9,l13. and that these results have
been obtained in the face of the total
failure OF so many well known asso-
Citations which have with difficulty
been distinguished in the public mind
from the purely cooperative associa-
tons, think the success OF well-man-
aged institutions may be considered
assured, and all reasonable claims OF
the advocates CT the system may be
deemed justified.
Laws Governing Should Be Strict.
believe that had the laws OF this
State sufficiently restricted and defined
the powers OF these corporations, and
had adequate powers OF supervision
been given the superintendent at their
inception, the building and loan as
sociauons OF the Empire State would
have attained the same pre-emlnence
in their class as our other financial in
stitutions, and that incalculable good
would have resulted from their increas-
ed efficiency. Nor is there any real
ground for antagonism between these
corporations and other financial insti-
tutions like banks and savings banks,
Notwithstanding the charge sometimes
made by those who would obscure the
issue, that the superintendent of banks
in his efforts to purify the system and