Omaha daily bee., 1903-05-24
COOPERATIVE HOME GETTING
Twelfth Annual Meeting of the Nebraska
League of Local Associations,
SYNOPSIS OF SOME PAPERS PRESENTED
Savings Bank Features Pro-
nOunced Illegal and ImpracticabIe
Separate Expense Funds and
ForfeItures Condemned.

The twelve annual meeting of the Ne
braska State League of Local Building and
Loan associations was held at wahoo last
Thursday. Thirty-two delegates, represent
ing fifteen associations, were present. Hon.
Z. RoysA, secretary Of the State Banking
board, and his predecessor, Hon. T. l..
Hall, and L. V. Haskell, state bank ex-
aminer, were among the visitors. Consid-
cradle recreation preceded and closed the
afternoon and evening sessions. Wahoo as
sociations, represented by DR.. Ben b. Rupp,
II. NJ. Stratton and +. r. Clark, acted as
entertainers and performed the task in a
delightful, fashion. A ride around the city,
over hills and through valleys, afforded a
perspective of rural beauty In May garb
unsurpassed in the state. Elegant and
modest homes dotted the gently sloping
hill. Many new buildings are under way.
Evidences of thrift and prosperity are Wis
ible in the business and residence sections.
Well kept lawns, permanent sidewalks,
freshly painted buildings and the Danish
ment of fences gave an air of tidiness that
called from one admiring visitor the ex-
clamation, "A rural ruby in an emerald
setting" A banquet httingly closed the
hospitable features of the meeting.
Only one question OF special Importance
came up for action. At the preceding meet
ing a committee was appointed to consider
and report on the feasibility and legality Of
adding savings bank features to building
and loan associations. DIR. Hall had on
several occasions urged the adoption Of
savings bank methods in order that mem
bers might deposit any sum available at ir-
regular times. A majority OF the commit
tee reported against the proposition on the
ground that It was clearly illegal and would
render shareholders liable for double the
amount Of their stock, as is the case with
all other banking institutions of the state.
Outside of any legal complications" says
the report, I'VE think the building and loan
association proper has a legitimate and
broad field Of usefulness in a community
and that a strict adherence to the funda-
mental principles of the association will
best serve the interest Of all parties con-
nected with the same.
SHOULD it be desirable In any community,
in order to meet the demands of depositors,
that a savings bank feature should be
added. we think It would be far better to
organize a savings bank proper, outside Of
the building and loan association, and let
1t have no connection Herewith"
After a lengthy discussion the report was
adopted.
Expense Funds and FOrfeitures.
President Bentley called attention to sew
eral matters of current interest in his an
nual address. He reviewed the work OF
t~he-league in promoting legislation giving
the State Banking Board supervisory con-
troll of installment Investment companies,
in securing the correction of errors in the
revenue bill, involving double taxation of
building and loan associations, and the as
s~istance rendered Attorney General Prout
in prosecuting to a successful conclusion
quo warranto proceedings against home
cooperative companies" Mr.. Bentley said
that the root of the graft in these and its
predecessors, national associations, bond
companies, diamond tontiners and deben-
lures, was the forfeiture of lapsed shares
and separate expense funds. The contribu.
ton OF 81 a month to the investment fund
and Is cents a month to the expense fund
is not an one. This meant tina
the victim paid the company 50 during the
first year for investing H2 for him. Mr.
Bentley said the correct principle In re-
gard to the profits and expenses of com.
panies organized to invest periodical con.
~tributions for the account Of the con.
tributor is embodied IN our building and
loan association law. Expenses are paiC
out OF the gross profits and dividends and
net profits are made pro rata, according e
amounts contributed by members AM
deviation from this rule by an investment
company must Of necessity work injustic,
to some class Of contributors. 1.-THE for
fixture Of contributions already paid in
where the contributor does not continue t
make his periodical contributions" said MI