Omaha daily bee., 1906-05-27


placing such property in the personal
schedule for tax purposes. AS the case
has been appealed to the supreme court,
the executive committee of the league
was instructed to have one or more assoc
citation attorneys appear at the hearing
as friends Of the court"
Work of the Year.
President Nattinger of Omaha reviewed
the work of the year in an instructive
way, quoting from the returns Of the
State Banking board to show the steady
growth of associations. The gain in
assets was S1,O5lOOO and the total business
transacted footed $5.2SO,OOO. This large
sum was handled at an actual expense
of S1O8,131. The sixty associations in the
state have 10000 shares outstanding. a
gain of 1900 in a year. representing
81, 269, 900 saved in this manner by the wage
earning classes. Mr.. Nattinger called at
tention to the fact that twenty-three as
sociations reported an increase in full paid
shares of from $SS5,OOO to H.126,0Oo in a
year, regarding the figures as evidence of
public demand for that form Of invest
ment. mo doubt" he said. this demand
is caused by the prosperous conditions
which exist throughout our state the large
dLLOuul VI Llulits NiAiNA 10 bNAiA6 oSeuAhiu
lated by the wage earners and the farm
ers, for which no good form of investment
can be found. and by the further fact
that most of the state associations are
paying per cent per annum to holders
of such shares, which certainly makes 1t
a very attractive form of investment, espe-
cially when consideration is given to the
fact that in most cases 1t will be re-.
deemed on thirty days notice" In recon-
mending full paid shares a means of
charging the activities of associations,
Mr. Nattinger cited the results in Illinois,
where the law was amended so as permit
the issuance of such shares under certain
restrictions, thereby materially increasing
the resources of associations and sub
stantially increasing their usefulness.
A peculiar conditions of AFFAIRS which
evoked an expression of regret from Pres-
dent Nattinger is the absence of local as
socia lions from several cities which afford
inviting fields He cited Lincoln in par
ticular, where associations doing a state
wide business last year paid out on loans
1877, 900, receiving higher rates of interest
than local associations charge. He urged
the organization of local associations in
these localities because they develop local
pride, keep at home the money sent to
other cities, and contribute in a higher
and larger degree to the welfare Of the
community where their destiny is cast.
Observations of "A Bank Examiner.
Fred Whittemore, state bank examiner,
presented an instructive paper, based on
his experience as examiner of building and
loan associations. He supplemented and
emphasized President Nattinger's remarks
on the value of local associations to COM
munities in which they operate. "Of all
the small towns and large ones in this
great state of Nebraska" he SAID only
forty-fve can count a building and loan
| association among its resources. Here is
great chance for missionary work by
| your state league. Cooperative societies
are essentially unselhsh, and their greatest
good is confined largely to their immediate
| locality, so why not spread the gospel Of
these home building concerns and convince
| other towns and villages of their blessings.
| Nothing else could contribute more to
| make Nebraska a state Of beautiful towns,
built of comfortable homes, owned by
| their occupants, and I'm time free from
| debt. Local commercials clubs and bust
ness mems associations should take hold
! and organize and foster these associations
In every town. No better security nor
larger profit on savings is anywhere as
| sured than in these locally managed, CO.
| operative institutions. under the restrain
| ing control of our excellent building and
loan law" As proof of these claims Mr..
Whittemore stated that since the law went
into effect no association went into the
hands of a receiver, nor has a dollar SO
| invested been lost. The reason for 1t, he
pointed out. lies in the fact that the money
l.. a. N,VVw
or build homes. The security must be
| first mortgage, at not to exceed two
thirds of the value OF the property, rein.
foced by fire insurance. 80 the chance
OF loss in an honestly managed associa
ton is very small" Mr.. whittemore ex
pressed a decided preference for the per
manent over the serial association. The
permanent plan makes every shareholder.
account stand by itself. its size Dependent
on the holders deposits. with added earn
ings, the shares maturing regardless o.
other accounts. In the serial association
shares are issued at certain times, and al
shares in a given series advance together
and mature at The same time In thI
case regular monthly payments must b.
made and delinquents are fined. Tn,
member IN a series who through sickness
or other cause falls behind the procession
is at a disadvantage. He becomes a dral
to the series. The secretary is annoyed
at being Obliged TO prod him. The perma
nent plan obviates this by having eacl
account stand or fall by itself. II
member falls behind in his payments, h
simply does not receive credit Later h
may start in right where he left OF ant
nobody is harmed. I'm this way" sal,
Mr.. Whittemore, 1.-The requirements ar
made elastic to At everybodys circum
stances without interfering with the othe
members Regarding the issuance OF paid
up shares Mr.. Whittemore thought asso
Citations should avail themselves OF tn
privilege. Paid-up shares AFFORDS elasticit,
In the supply OF loan fund.- but their Is
suance should be regulated by the de
mand for money. A pleasing fact note
~ the bank examiner is that ''associa
lions are getting down to a fairer NOR
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