Omaha daily bee., 1902-05-04

was pointed out that mutual savings banks
as proposed would necessarily usurp the
functions Of building and loan associations
and Of savings banks with fixed capital.
The latter Institutions, controlled by more
experienced men. could at once avail them
selves Of the mutual system, while mana
gers OF building and loan associations, at
least a majority Of them, would have to
acquire experience. In Ohio, building and
loan associations have savings bank attach
ments, in which depositors are given a fixed
rate Of interest, generally lower than the
profits Of the associations, the difference
a~ccruing to the shareholders Of the build
ing and loan associations. The associations
are therefore responsible for the deposits
In the savings banks, and any losses in
Cured must be borne by the shareholders OF
the main concern. The vital point brought
out was whether shareholders and deposit
ors should be on an equality as to profits
and responsibility. President Bentley
warned the delegates to consider the ad-
vantages and disadvantages OF the pro-
posed departure. He cited the Beckwith
association, one Of the oldest and strongest
in England, in which seven eighths Of the
assets we're deposits in the savings bank
department and one-eighth by sharehold-
ers. The latter derive profit from the for
mer. II the association should become en-
barrassed the depositors would have a prior
lien, and would easily wipe out the princi-
pal and profits Of the minority. At his sug-
gestion the question was referred to a COM
mittee for consideration and report at the
next annual meeting.
Home Cooperative Companies.
Home cooperative companies coming
from Missouri into Nebraska received con-
siderable attention. A letter from Hon. E.
Royse, secretary of the State Banking
board, urged the league to continue in the
good work Of prosecuting and exposing
this and other forms of fraud and misrep-
resentation, promising the active co-opera-
ton Of the State Banking board. "A GER
tain class Of parasites Of the social body"
he said, ARE busy using the associations
you represent as models from which to con-
struct institutions permeated with fraud
and Misrepresentation. galvanized with
glittering promises impossible of fulfill
ment, and presented to a credulous public
as the acme Of home building and home
purchasing wisdom. The promoters go
forth proclaiming a mission OF philan-
thropy, a generosity OF motive, presenting
a plausible and catchy plan Of operation,
and with such JUNCTION and zeal that you
seem a back number in this splendid civil
i~zation. Such suggestive titles as Home
Cooperative Companies Home Savings
Associations Home Building Associations
appeal to these promoters and suit their
purposes and fancies. They are OF all
grades, from a national building and loan
association TO a diamond scheme. The in
genuity with which they fool the public and
the alacrity with which the public falls
over itself to be fooled. excites admiration.
When left alone the promoters of these
fraudulent concerns convince us that Bar
mum knew what he was talking about when
he said, The public like to be humbugged. u"
Mr.. Royse awarded to Kansas City the
doubtful honor of having fashioned the most
artistic model OF brazen fraud. ut is to
he regretted" he said, that building and
loan associations have to contend with such
Institutions and are compelled in a measure
to bear the odium Of their pretended SINH
larity Of purpose. for 1t is only too true
that this odium does in a measure attach
to legitimate building and loan associations.
The department with which 1 have the
honor to be connected is doing everything
in Its power to not only keep these frauds
out Of the state, but to suppress such as
spring up within the state"
Facts Based on Figures.
These so-calied home companies" were
discussed with much statistical detail In q
paper by T. ]. F1tsmorris Of this city. He
asserted the scheme embodied in the con-
tracts of the companies was impossible of
fulhllment because 1t sought to make all
members borrowers of a fund contributed
In installments by the members. The re-
suit is that SO out Of every 100 members
must wait from i've to seventy years for
the maturity Of their contracts. Computa-
tions made by expert accountants in Omaha
and Kansas City showed that only % out of
1000 contracts could be matured in the
first twenty months and only II out of 1000
In FIVE years, so that at no time could more
than IL per cent Of the total number OF
contracts In force be matured within Ave
years. On a fiat membership OF 5000, all
starting together and remaining to the An
ish, 100 contracts would be matured in the
hrst period Of twenty months, S55 In 1--WE
years. 2.105 In twenty years, 4.545 In forty
years. and the last one OF the 5000 would, II
he lived, get his home paid for in seventy
six years and eight months. Regarding the
pretended cheapness OF the scheme as a
loantng agency, Mr.. Fitzmorris showed
that the profits Of the promoters the first
year would be 80 per cent Of the receipts.
at the end OF five years rs per cent. and at
the end Of 20 years II per cent of all the
money handled
Land Transfers.
The question OF cheapening and simplify
Ing the present system of real estate trans
fers is one Of deep concern to building as
ISOLATION men. Mr.. G.. NJ. Nattinger OF
this city read a paper giving the history
OF the Torrens system and the progress II
Is making In various states and his views
In favor Of this or similar method were
warmly endorsed by the convention. With
the methods now In vogue the transfer OF
property or the filing Of a mortgage in
wolves considerable time and expense.
There are fees for abstractors of title and
lawyers must get IS or $40 for examining
the papers Of the abstractor. These two
Items take from $25 to s75 and then the
owner has no assurance that the title is
perfect. The next abstractor and the next
lawyer may find defects and the expense is
piled up again. In Douglas county the
system is becoming more complex and cum
bersome and books Of record, now 300 in
number. are increasing the difficulties and
piling up the cost. Although the commits
sion appointed to consider the subject pre-
scented a divided report. the convention de-