Omaha daily bee., 1902-07-27

banks. To become. in fact. mutual savings
banks, and by so doing more completely
perform the work which modern necessities
require.
Yet many Of those who champion the
permanent plan concede the need Of apply
ing the brakes to som Of the wheels, espe-
eially in the direction Of so-cailed quick
assets" The influx Of the investing class
into associations as depositors and holders
of paid-up stock produces at times a sur
plus of idle money. In order to maintain its
standard Of profit II is necessary to keep
money at work. Reducing the loaning rate
does not always reduce the surplus. The
problem Of employing that idle money per-
plexes the managers. Instead Of following
the old method Of requiring non-borrowing
shareholders to become borrowers or with
draw 1t is proposed to invest In high-class
bonds, national. state. county and city, and
other similar security OF conceded value. In
this way the surplus may be employed for
a time and made available for conversion
into cash whenever the demands OF borrow
ers and OF Withdrawing members warrant.
But in a majority Of states legal ~restric-
lions prevent expansion in that direction,
although It is practiced TO a limited extent
by many associations.
Benehts of the TOrrens Law.
The operation OF the Torrens system Of
land title registration in Chicago was the
subject of a paper by Theodore Sheldon,
a resident Of that city. This is q subject
OF considerable interest to the people Of
the west, where the cost Of transferring or
mortgaging real estate is becoming very
complicated and costly. Unlike other re-
forms from the South Pacific, the Torrens
system encounters sharp opposition, as was
shown In the DIVIDED report OF the Me-
braska commission last winter. 1t is re-
pugnant to abstractors and title examiners,
and by an element OF the legal profession
which thrives on title flaws. Notwithstand-
ing this entrenched opposition, the law
was steadily growing in favor in Chicago.
Under the old system the cost of an alb
stract of title, or its continuation, ranges
from 325 10 $50. Rarely is the cost under
s25. Under the Torrens system the ex-
pense is emily So. In two years between
700 and 500 applications for certificates Of
title under the law have been made in
Cook county and a corresponding number
Of certificates issued. The cost Of obtain
ing a certificate OF title Is S24, and once
obtained it d%ispenses with bulky abstracts
and the cost Of keeping them up. Mr..
Sheldon illustrated the simplicity Of the
system by comparing s registered certih-
cate OF title with a stock certificate. They
may be bought and sold and mortgaged
and dealt with in the registrars ONCE with
less expense. less time and less bother than
the owners Of securities can receive when
dealing in the same in the Chicago or the
New York stock exchanges. In fact. the
real estate certificate can be disposed Of or
borrowed on In less time and with less
expense than II II we're personal property.
For building and loan associations the reg
istration system is particularly valuation.
inasmuch as II simplihes titles. eXpedites
the making OF loans and reduces the cost
Of such transactions to home builders,
when you once know this system" said
Mr.. Sheldon, you will not any more go
back TO the old systems than those who
use electric lights would 90 back to candle
lights"
Gerald Fitzgerald Of Grand Rapids. Mich.
was chosen president. James clarency Of
Philadelphia vice president and II. II. Cell
larius Of Cincinnati secretary.
The next convention OF the league will
be held In Boston. July. 1903.
T.. ]. FITzMoRRIs.