Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-01-03
GROWTH IS SHOWN
Annual Report for Illinois on Loan
Associations Indicate
Prosperity.
CONCERNS ON THE INCREASE
Gain Of $1,543,319.01 in Resources -
Comment of State Auditor
Mccullough.

The 18th annual report OF the build
ing. loan and homestead associations of
the state of Illinois was made public
yesterday by State Auditor McCul-
Tough The report for the first time in
nine years shows both an increase in
number of associations and substan-
tial growth in assets. Resources ag
sregate S40.975. G0149. as compared
with 500. 432, 2S24S for the previous
year a gain of ST .543,319.01. or about
four per cent Loans in force are $35,
pa, 15S.SS, as against $50 .990,971.42, a
gain of $2.243, 1S7.45. or about per
cent.
Real estate holdings which have
proved SO burdensome and unproduc-
tive, judgments or masters certificates.
taxes and insurance paid for borrowers
and kindred accounts, all of which rep
resent undesirable assets, show very
gratifying reduction.
The unsold real estate represents
less than per cent of the associations
entire assets. and in view of an active
market and improved values, a much
better showing in this regard may be
expected in the near future.
Securities Are Healthy.
Despite the increase of loans in force
the arrearage of interest, premium and
fines due on such loans has fallen off
at the rate of 1919 per cent during the
year, indicating healthier condition
of securities and a betterment in the
ability of borrowing members to meet
their regular payments.
For several years past some of the
concerns have complained of
a dearth in the demand for loans. The
reports for this year in many cases
show either overdrafts or liability for
borrowed money, the average cash bal
ance on hand is less, fewer shares
were involuntarily retired. all of which
points to a general improvement and
activity in the lOaning bus |
mess.
The item of contingent fund under
liabilities deserves special mention.
This reserve has been gradually aug |
mented until it amounts to almost |
100000, sum exceeding the interest, |
premium and fines accrued and unpaid
carried assets and representing over %
per cent upon real estate and masters
certificates combined.
A study of the figures in receipts and |
develops the fact that |
both dues and interest receipts exceed |
those of 1903 and that over $2,250,0 900 |
was paid to members as interest or |
profit in the withdrawal or maturity of |
stock
Expenses Show Less.
Although there is an evident increase
in the business, the report shows |
ed for operating expenses. To this
doubtless can be attributed the success
Of the associations in maintaining the
net earning rate upon the stock in
force. Last year this rate was record
ed as $50 per cent for the country and
so per cent for Chicago. The calcu-
ation this year shows 9.36 per cent and
j.01 per cent, respectively.
Stock sales show an increase both
IN the city and the country, but an alb
normal demand from Withdrawing
members in Chicago results in a small
net loss in the number of shares in
force in the state.
Judging from the reports and infor-
nation gained from personal contact
with officers of these institutions, the
auditor is convinced that the situa-
ion generally, and especially outside
If Chicago, is satisfactory and encour-
aging From a comparison of the in
lividual reports Of 331 associations in
he country with those of last year he
noted that the great majority, 215,
showed growth in resources. Many
# the exceptions are located in very
mall towns. where building and i'm
,rOvement is limited and the associa-
ion can expect little if any support