Omaha daily bee., 1903-05-24

ciety when he ceases to contribute to its
funds. The victim believes the story at
first, but on clos inspection he sees that
in the fraternal society all his contributions
have. according to the contract, been dis
bursed in paying benefits and there is no
fund left to his credit which can be subject
to forfeit. In the investment company, ac-'
cording to contract, his contributions are
invested and form a fund standing to his
credit. So that, If the rules or contracts
provide that this fund is to be forfeited
when he lapses, he is virtually robbed Of
the fund thus accumulated by his indus
try and .self-sacrihce."
Mr.. Bentley cautioned the league to
watch carefully for the expense fund and
the forfeiture feature IN concerns which
seek to operate under the new law. II they
are given legal sanction under the law
they Will perpetrate a series OF petty
frauds among the working classes.
Opportunity for Associations.
Hon. E. Royse, secretary OF the State
Banking board, defined the purpose OF a
building and loan association and the lines
1t must follow to insure success. What
ever element OF philanthropy enters into
the scheme, he said, must not interfere
with the cold calculation of profits. 1t
must be operated strictly upon business
hnes and with fidelity, which knows
neither temptation nor sentiment. I'VE are
rapidly reaching that period" said Mr..
Royse, where values and conditions must
from necessity become more stationary and
fixed, which means that the gaining of a
competence must be by slower and surer
methods.
1t is but a few years since an entrance
fee of s4 and a willingness to brave the
prtvations of homestead life would give
any man a farm of 100 acres. That day has
gone by In Nebraska. The man starting
to make for himself and family a home in
Nebraska land, with farm land from $50
to 800 per acre, has a different PROPOSE
ton to face from the man who needed but
sufficient nerve and funds to squat on gov
eminent land. 1t is these matured condi-
lions which furnish a field for building
and loan associations, which from their
nature to thrive and prosper must be pat
ronized by people of small opportunities.
We are Eow on the threshold of the build
ing and loan era in this state and the
members of the league who are laying the
foundations upon which the future of these
Institutions must rest are building for
themselves a monument upon which, we
hope, future generations will look with
pride and satisfaction.
1.-The man who would engraft upon in
situations having such a mission anything
Of a nature wildcat or visionary deserves
condemnation. Keep these institutions
along safe lines. as you nave done in the
past, and as the necessity for them in
creases you will rave your reward in wit
Messing their future growth and pros
perity."
Home Cooperative Graft.
The death and burial of the home CO.
operative ~companies,'' outlawed in Ne
braska by the decision of the state SUI
preme court, was the subject of a memorial
paper by T. J. F1tzmorris. The largest
and probably the parent OF these com
panies was the Kansas City Cooperative
company, which was excluded from the
state by the banking board, and which
subsequently, purchased the remnants OF
the company condemned by our supreme
court. Last January the Postofice de-
partment issued a fraud order against the
company. Proceedings were instituted by
the company in the federal court at Kansas
City TO have the order set aside. Test
mony was taken by a commissioner last
April and a summary of this testimony
demonstrating the utter inability Of the
company to fulhll its contracts, formed
the basis of the paper. According to the
books OF the company and the testimony
Of Samuel Eppstein, secretary, the COM
pany had issued 1920 contracts up to Oc-
tober, 1902, of which 40 per cent were dead
or lapsed contracts. There was but $50
in the home fund to meet a deficit of SCI, 60i
l on December 81, 1902, which was increased
I in January and February of this year t.
$4,000. 1t was also shown that the com,
, pany was hopelessly insolvent in October
= 1902, its condition becoming worse anc
worse each month, and yet the secretary
. admitted that these facts were carefully
concealed from the company's contract
holders and the public, and the company
\ kept advertising for new business, making
false reports and promises in the hope o
staving off utter failure by new business
. To holders OF lapsed contracts the com
pany returned $500. The company ma
tured, all told, 800 contracts. and bough
homes for $50 contract holders. The tota
receipts OF the company, as shown by tn,
books, were 1880. out of this there wa
paid SI homes contracted for 1892, 100, leav
o ing me company profits amounting to STA.
8 70O-almost 50 per cent OF the income. Be
o sides, there was the admission fee OF s
3 per contract, for which the purchaser re
ceived no credit This would add s5l, 72O I
& the company's profits, making the tota
o profits S166, 40. Nor was this all. whe
n the company was sold to st. Louis partie
II in September last the retiring promoter
> divided $1,000, the amount received anon
themselves. and left a deficit Of 1880 10
d the new owners to worry over. 'Out G
s. this mess of dishonesty and false pretense.
e said Mr.. Fitzmorris. ''some good has com'
It We may congratulate ourselves and tn
state that II was instrumental in securin
the enactment Of a law designed to prever
the operation OF similar fraudulent cor
Germs I'm he future"
Il Papers were read by G.. NJ. Nattinge
Omaha; A. Truesdell. Fremont; G. II. CT
more, Omaha; r. NJ. Gillian, Auburn; /
~ H. Christie. Omaha. These papers r,
lated to business methods and details. n
qualifications and duties OF officers and Il
n influence of associations on private either
ship.
Columbus was chosen for the next NEE
ing. The old officers were unanimously n
- elected. and c. F. Bentley. A. Truesdel
T. ]. Fttzmorris, @. NJ. Nattinger, ID. I
Christie. and II. NJ. Stratton elected del,
- gates to the United States league meetir
at Boston in July.
n Food supply of Each Person.
Some statistical person has figured OF