Omaha daily bee., 1908-06-02
LOAN AND BUILDING MEN
State Association Holds Seventeenth
Annual Meeting at Hotel Loyal.
TONE OF CONDITIONS IS HIGH
President Nsttineer in His Address
shows an Increase I'm Assets
Of Nearly Three Million
Dollsrs.

day evening at Sis O'Clock by the election
of these officers for the ensuing year:
President, c. w. Brinninger eff Grand
Island. .
Second vice president. r NJ. Gillian of
Auburn.
Secretary treasurer, Elmer E. Bryson Of
Omaha.
The next annual meeting will be held in
Grand Island.
The h-afternoon ksession Awas de-
voted to the reading and discussion of
miscellaneous papers. These included
Some Objections to the Dayton Plan" by
A.. Truesdell Of Fremont; Amendments to
the Nebraska Building and Boan Associa-
ton Law" by william Baird of Omaha;
Building and Loan Associations attract a
Business Man. by David Cole Of Omaha,
and SHOULD Deposits be Guaranteed by
state and National Banks" by c. F. Nc
Grew Of Omaha. In his paper Mr.. McGrew
took a strong stand against the guaran-
teeins Of deposits, holding that instead Of
inviting honesty in the administration OF
bank affairs, such a law would act exactly
the reverse. He held further. that such a
law would haev the effect of driving many
conservative bankers out of the business,
because it would place them at the mercy
of careless and dishonest bankers. Bank
ing is a private business" he said, built
I'D by the enterprise, conservatism and
honesty of honest men. Two-fifths of the
entire banking business of the world is
done by the American banks and nowhere
in the world is that business conducted
more honestly or intelligently.
Panics. Not Averted.
The guaranteeing of deposits of a bank
by the government or state will not stop
a panic. do not believe that the govern
ment or state has any more right to
guarantee the deosits of a bank than 1T
has to guarantee any other business. If
banking is to be a government institution,
then make it such an institution abso-
lutely. Bankers are much like other men.
They aer of the same flesh and blood as
other men and aer no better nor worse
than other men. Great as we are, do we
want to change our entire financial sys-
TENS now. They have stood the test OF
years, and I do not think we can improve
on them. 1 believe the time will come
Mr.. Baird. in his paper, recommended
that the bylaws of the association should
be so amended as to increase the capital
stock, n that stockholders should be per-
mitted to- vote by mail. He was opposed
to any other changes in the present by
laws. His recommendations were referred
to the executive committee. as was a
resolution tina efforts be made to have
a law passed by the legislature exempting
building and loan associations from taxa
ton.
when a bank failure will be a thing of the
past. We are proud of our great banking
institutions and they are worthy of our
confidence" 81"
At $3.50 the delegates were entertained
at dinner by the local associations, fol-
lowing which a theatre party was given
them. Some few of the delegates awaited
of the opportunity to visit the den, where
they were introduced into the dignities
OF knighthood in the Kingdom of Ak-Sar-
Ben.
he executive committee was authorized
to add three members to dat committee,
as a committee on Legislation.
The Tecumseh and Fairbury a~ssocia-
tons were added to the membership Of
the state legue.
The seventeenth annual meeting of the
Nebraska State League of Local Loan and
Building associations convened in the ban
quet hall of the Hotel Loyal at IL a. m.
Monday, with about fifty delegates present
from all parts of the state.
The meeting was called to order by
President G. M. Nattlnger, who introduced
c. o. Lobeck, city comptroller Of Omaha.
who delivered the address Of welcome on
behalf of the city in the absence Of Mayor
Dahlman confined to his home by illness.
C. w. Brinninger of Fremont responded
briefly to the address of welcome.
Chairman Nattinger then announced these
committees
Credentials. H. M. stratton of Wahoo; H.
Hackenberger of Columbus and ]. j. Fitz-
gerald Of South Omaha.
Resolutions. A. Truesdell of Fremont;
George F. Gilmore OF Omaha and r. NJ.
Gillian OF Auburn.
Address by the President.
President Nattinger then read his annual
address, which stated:
We have about completely recovered from
the panicky conditions which shook the
financial framework of the entire nation,
and from all over the country come re-
ports Of renewed confidence in the business
OF the building and loan associations, q
complete recovery from the business lost
and an accession of membership.
From the very excellent report Of the
secretary Of the State Banking board we
find that there We're sixty-six associations
IN the state at the, close Of June. 1901, an
increase OF five during the fiscal year
those five having accumulated S49, 1888
since organization; that there were Sl5, 374
@AAAAN9 III ~ oAhA NhN aAAAbN Va 2AoAN y
issued during the year were ll0, 734, an in
crease Of 32.957; the number of Dor
rowing stockholders increased 739 and in
vestors 6.402, giving a total membership OF
1928; amount .of loans, $40 423, CLASS, OF
which only $S.lS2-54 were in process OF
foreclosure. The associations cash on
hand was $542 90, with only SS1,07S.t6 in
real estate; the capital stock, including
dividends, was sos 6,5Hl6 and reserve
fund 1924. 1885; undivided profits were $751;
4S.n and due shareholders on incomplete
loans S1S,332l7. The increase In assets fol-
the year was 50. 461, l02. IS. nearly as large
as the total assets for the first published
report of the Banking board, in 1892, they
then being S2,902.557.6L The earnings paid
out during the year were S6O4,267.l9.
This statistical Information would hardly
be complete did / not add that there were
IN the United States 6.S67 associations with
a membership of l,S09,957 and assets OF
S728,034,5 $40, the increase for the year being
l 1880, 312, and In membership ITO, ga
Going still further into the state banking
board report II is found that the average
rate OF dividend paid to the membership
has been S.5 per cent. This, TO me. is jus
cause for criticism implying that a heavy
rate Is charged to the borrower. There
would be equity perhaps In this were al
borrowers alike charged the same rate OF
loans and alike paid interest for the saml
periods. a proposition impossible under the
present system OF conducting the business