Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-25
REGULATION OF LOANg
DRAFT OF BILL CONSIDERED By
COMMISSIONERS.

Commissioner Mcfarland submitted to
the other two Commissioners this morning
Tor transmission to Congress the draft OF
bill which is Intended to bring the build
ing and loan associations of the District Of
Columbia under the supervision Of the
Controller Of the Currency. and In order
that such institutions may be subjected to
the strfctest governmental supervision. as
Is given similar associations in the princi-
pal states. As to the best method Of car
rying out this idea, Commissioner Macfar-
land has had repeated consultations with
the controller of the currency and repre-
sentatfves Of building and loan associa-
tons. and he is satisfied that the draft will
meet all the expectations.
This draft Is proposed to be an amend
ment to section 601, sub-chapter Z, of the
code Of law of the District of Columbia.
relating to building associations. 1t Is as
follows:
Section 691 Objects-The object of such
corporation shall be the accumulation OF
capital In money to be derived from the
thereof, to be paid into said corporation
in periodical installments in fixed and GER
tain sums, and in such amount as shall be
the members thereof. by obtaining adj
vances upon their shares of stock. to pur-
chase or erect homes for themselves.
Provisions introduced.
provided. That the controller Of the
currency, in addition to the powers con-
ferred upon him by law for the examine
tion of national banks, is further author
lied, whenever he may deem 1t useful, to
cause examination to be made into the con-
dition of any building association incorpor-
ated under the provisions Of this chapter,
as well as any other building or loan asso-
citation doing business in the District OF
Columbia which is Incorporated under
charter granted by any of the states or
territories. The expenses necessarily IN
currd in making any such examination
shall be paid by the corporation to the
controller of the currency at the time of
the making of such examination.
And provided further: That every such
corporation shall make to the controller
of the currency not less than two reports
during each year, according to the form
which may be prescribed by him. Verl-
fed by the oath or the affirmation OF
citation, and attested by the signatures
Of at least three Of the directors. The
said controller shall also have power to
take possession of any such company or
it Is insolvent, or is knowingly violating
the laws under which such company is
incorporated, and to liquidate the same
in the manner provided in the laws OF the
United States in respect to national
banks.
Time Limitation.
provided further: That from and after
the first day of -, Ammo Dom1n1,
1907, no person. company. association, CO.
partnership or corporation. except corpo-
rations organized under or availing
themselves of the privileges of this act.
shall conduct or carry on in the District
Of Columbia the kind of business named
in this act without strict compliance in
all particulars with the provisions of this
act. Any person, officer or agent of any
company, firm or corporation who shall
willfully violate any Of the provisions of
this section shall be deemed guilty of a
misdemeanor and shall. on conviction
thereof, be punished by fine Of not more
than $1,000. or by Imprisonment not
longer than two years. or by both said
punishments, in the discretion of the
court.
THAT any willful false swearing in re-
gard to any certificate or report or public
notice required by the provisions of this
act shall be perjury. and shall be pun
ished as such according to the laws of
the District of Columbia. And any mis-
appropriation of any Of the money of any
corporation or company formed under
or availing itself of the privileges of this
act, or any money, funds or property in
trusted to any such corporation or COM
pany. shall be held to be larceny and
shall be punished as such under the laws
Of said District"