Omaha daily bee., 1903-05-10
COOPERATIVE HOME BUILDING
FRO Il m OF the Twelfth Annual Meeting
Of the Nebraska State League.
CtNEw OF THE LEAGUES ACTIVITY
$. nopsis of the New Law Governing
InstalIment Investment Com
pnnies-PrOgress of CO.
Operation In the state.

loan ASSOCIATIONS VIII be held at Wahoo
on Thursday, the 2lst inst. An extended
program has been arranged for the occa-
sion. In addition to the routine business
Of the league, papers will be read by Hon.
c. F. Bentley of Grand Island, Hon. r.
Royse, secretary of the state banking
board; Judge s.. II. sornborger Of Wahoo;
@. NJ. Nattinger. Omaha: r. NJ. Gillian,
Auburn. T. j. Fitzmorris, Omaha; A.
Truesdell. Fremont: G. II. Gilmore, Omaha,
and d. II. Christie, Omaha.
The names are those of the ablest and
most energetic men engaged in promot-
ing cooperation in Nebraska. They are
experienced and progressive men, and the
topics chosen for discussion are Of imme-
diate interest to officers and members of
associations. "The present great growth
and development OF our state" says secre-
tary Bryson, "calls for better and more
liberal systems of transacting business, and
this calls for a like Improvement in the
plans and methods of loan and building as
sociations. The purpose Of these annual
meetings Is to compare methods and ex-
periences, and thus remedy any defects
shown to exist"
Work of the League.
The state league has been in existence
scarcely eleven years and has In that time
accomplished a vast amount Of good. 1t 10
doubtful II any other organization of such
limited membership has contributed as eff
fectively to the welfare of the people of
the state. The claim Is a pretty strong one,
but 1t Is susceptible Of proof. 1t is inn
possible to measure the value Of the
leagues work in dollars and cents, but the
work It performed laid the foundation for
the prosperity which Nebraska associations
enjoy today.
When the league came into existence in
\ September, 1892. the state was overrun with
hawkers of wildcat securities issued by
associations in other states. A law In
tended to restrict their operations and pro-
tect investors was on the statute books,
hut the law did not enforce itself. The
league undertook to give the law effect
and succeeded, and thereby saved the po-
pie OF the state from loss in the subse-
qnent wreck of foreign associations. Next
the league gave some attention to numer-
teal bond companies and assisted in rum
ming them to cover. It was instrumental
in securing the amended law of 1899, pro-
viding additional safeguards for sharehold-
ers. It helped 60 educate association Of
fcers and bring about improved business
methods, the effect Of which was to place
associations on the highway of prosperity
and strengthen them in public confidence.
Control of InstaIIment Concerns.
A move of Unreasonable value on the part
OF the league was the exposure of the de-
ceptive schemes of home cooperative COM
panies which drifted into Nebraska from
Missouri eighteen months ago. The pro-
ceedings Instituted by Attorney General
Prout ending with the decision of the state
supreme court pronouncing the scheme a
lottery practically ended their existence In
Nebraska and furnished a precedent for
other states similarly afflicted. To remedy
the defects In existing law which that ac-
ton developed. a bill was drafted by Pres
ident Bentley and after revision by Attor-
ney General Prout and other lawyers was
introduced in the last legislature. was
passed almost unanimously. and was ap-
proved by the governor. The law provides
that every association other than those
already organized under the laws of the
state, which collects money for its mem
bers "by means of stated installments or
payments to be held, invested or disbursed
by the association, whether the money
so contributed is paid for in shares in
such association. or Is held by the asso-
citation for investment or accumulation
for the benefit Of the contributors, or as
an advance on merchandise, OF as prop
erty Of any kind, to be delivered in the
future, or Is held by the association to be
disbursed among the contributors. or any
"a Oh lneIl, III dfCOiuhhNt VIII hAg abAoN
plan or scheme, and whether the. rela-
ton of the contributor to the association be
n that of member. shareholder, vendee. cred
itor or beneficiary Of a trust whether In
corporated, unincorporated or a copartner'
ship organized in this or any other state
or territory or an Individual, offering to do
business OF the character described, II
designated an installment investment com
pany.
The auditor OF public accounts, the stat
treasurer and the attorney general. con
s~tituting the state banking board. ar
Y given power TO issue certificates of ap
y proval. But before such certificate shall
issue the installment investment compan.
must file with the board a written state
ment OF its business plan, copies Of tn
constitution and bylaws, copies of the con
tract which. II proposes TO make with con
tributors, an itemized account Of It's imam
cial condition, the amount OF It's propert
and liabilities. and such other informatio
as the board may require. All such paper
must be verified under oath by the oficer'
Foreign installment companies are require
to file annually the papers named. II tn
board finds that the proposed plan OF bus
ness and contracts are fair and equitable,
certificate of approval shall issue. II nc
fair and equitable the board shall Withhold
approval.
Penalty for violation.
II any company or agent attempts
transact business without a certificate {
approval both principal and agent are lab
on conviction to a fine not exceeding $40
or thirty days in the county jail, or bot
AT the discretion OF the trial court.
InstaIlment companies organized In IN
state are required TO make annual repor
for the fiscal year ending June 30. Bot
the local and the foreign companies a
proved by the board are subject to e
animation at least once a year by the sta
bank examiner. and no changes propos'
by officers Of such companies in constit
ton, bylaws or contracts become efecti
until submitted to and approved by {
state banking board.
Installment investment companies alrea,
doing business in the state are given un