Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-06
SOUNDS WARNING
TO BUILDING AND
LOAN INVESTORS
Banking Commissioner Says
Thefts Are Easy Because OF
Trust in Managers.
Ispeelal 10 The Newark siar'i

lspeeiai 10 The Newark siaf'l
TRENTON, Dee Commissioner
OF Banking and Insurance George M
la Monte today submitted 10 Acting
Governor TAYLOR the annual report
OF the condition 81 tie building ana
lean associations al the State tie
ferring "a certain defaleations during
the fisoai year The commissioner
sounds a warning relative To the man
aeement of the associations lie
shows that the wrongdoing was made
easier by the absence Of proper
checks upon the work or those guilty
or the misuse of the funds of an asHo=
citation
In his report Mr. La Monte says
The record of the year has deem
injured by the discovery OF defalea
tons ia few of the institutions In
no instance however, was the aolN-
eaey OF the associations affected, the
whole amount involved was compare
lively small and the sums distracted
have either been made good OF VIII,
Ii is believed be eventually recovered.
Defalcationa were made easy, the
commissioner points out by reason
OF the implicit trust placed IN the IN
taerity OF the men by the bohrds OF
management The nnsarety or sueh
is thus given added demonstfatio non,
and the warning conveyed should be
needed by the managers or other as
speiations who may he disposed TO
permit similar conditions To exist
standing OF Institutions,
There was net increase OF sixty
institutions during the year. making
a total of 724 In the state The alb
straets Of the returns from u4a aeso=
Citations is given ia the report, Ihe
assets Of these CAS- associations amount
Ia SilS,063, dbs The chief Items In
these assets are First liens on mort
gages, Sll0 bOs, 22fi loans on shares OF
The associations, Sa,d0i bdd aud cash
depeaited in hank sa,0ie,Ola. The LA
Utilities are composed of Due install
ment shareholders for dues, $40, VA
Ny; due shareholders for profits ap-
purtioned, $40, $50, All, due paid UP
Shareholders for subscriptions $2,utl,z
O&7. balance payable ON loans made.
~ 81 4s0, and amount due Tor Dor
lowed money, S6,oeo,sai.
The total receipts FOR the year were
Sfa. 1e5, ASH and the total dishurse-
ments We're szt, lg6,77l, leaving a bal
anee OF cash ON hand ana in bank at
the close OF the year or ss,Oas,oSs,
srhe total membership Of these bis
associations at the close OF the year
Was 341, ASH a gain OF eS,OS2 during the
wear This Is an increase of over 10
per cent,
In summing up the report. Mr., La
Monte SAYS
s'rhe institutions have multiplied ia
recent years, and while the greater
number appear to have succeeded,
SOME have not been able to acquire
membership sufficiently large TO make
the scheme workable. and as the re-
suit they have amaigamated with
other associations or been wound up,
although a few are stu struggling
along under this handicap, II IL quite
apparent that the formation OF these
associations was ill-adVised They
were yarioualy located, some III places
where the population was too neasre
to afford reasonable promise OF their
success aud others In more populous
sections where the field was already
covered by existing associations, In
1.-The latter connection the belief has
= been expressed that the business OF
organizing such corporations in GER
tain localities had been everdene, and,
therefore. ought to be eurtailed--ali
81 which suggests the advisability OF
an amendment to the law requiring
associations hereafter Incorporated to
ehtain certificate Of authorization
froIu the commissioner and empower
ins him to withhold the same In any
case where il shall appear that the
conditions do not warrant its tasu-
anee.
sin line with what was stated In Its
report for the last preceding year
upon the subject OF unlfofm system
&c bookkeeping, tho department has
prepared and Is now having printed
sample forms OF certain essential
books copies Of which win be fur
aished the various associations, 1t Is
confidently believed that the general
edontlop Of these forms viii aid in
hFlnging about the Desired results"