The weekly Iberian. (New Iberia, La.) 1894-1946, 1915-01-23

The following is the Presidents
report:
PRESIDENTS ADDRESS:
The report submitted tonight is re-
plete with matters of more than usual
interest; those affecting Building As
sociations in general will first be con
naered, and then The business and at
| fairs Of our particular Institution.
For The fifth time in their history,
local building associations have been
exempted from the provisions OF a
| Special Revenue Act. The new Inter
nal Revenue Act, known as the War
Tax, which has Just passed Congress
and become law carries the eXemp-
ton clause of 1898 IN an amended
/ form.
These uniform exemptions by Con
gress from the effect OF the Revenue
acts show in what esteem these insti-
tutions are held by the highest legis-
/ lattve body in the land. lt also shows
/ the good work that has been done by
Il the United states League oil Local
Building Associations, in safeguard
ing their interests.
In the matter of stamping the deeds
and acts Of sale of building associa'
tons in making loans. the Commits
siorer of Internal Revenne first ruled
uuder the present law that these DEEDS
,eo1ired STAMPS, but there is later
ruling by him exempting deeds IL
Building Association Loans.
Though Building Associations
were specially exempted under The
tertns of the Corporation TAX, ant
also Of the Income Tax Acts, Commis
s,oner OF Internal Revenue held tina
these Institutions were subJcNf 70 TN
lax. that is, all associations whfcd ait
not deal exclusively with their mem
bers he hinging his decision on TIM
, word mutual, which he said applied
lonly to such associations as dealt ex
elusiveiy with their members, ant
only TO those Associations that de
, eiared but one rate of dividend on al
! their classes of stock, whether Fui
; Paid stock, Dayton Stock, or what
ever might be its character. Tes
cases were brought in several OF TIL
Z States in the Federal Courts and th
decisions. with the exception of one
! 20 far as we know, have unitormi
been ia favor Of the Associations an
against the ruling of the commis
sioner, Especially in an opinio
Z handed down by the United State
4 District Gourt at Cincinnati, all th
4 contentious Of the Building Associs
lions against the ruling of the Ton
missioner have been upheld and th
q exemption clause given far reachin
! Interpretation.
The court held that these Associ'
tions. Notwithstanding their powt
h anaer the laws Of Ohio, to borro
& font or loan money to non member
X IL fssfrc various classes OF STOCK, TO r
IA na;ve ae9gsiis and to do many sue
!. things are organized and operated e.
" e,us}4eiv for the mutual benefit
ID tb.tr paauat ers, within the meaning
Il the TaaefM Corporation and ineon
IS Tax law and come strictly within I'll
b ayoviso Civ ing them exemption fro
z ,Ie nayrneut of a Federal Tax upt
4 their incomes. In as much as q
b ohio Bus laing Associations receive q
ts nosits lend money to their member
horrow from non-meElbers, issue o.
farent classes OF stock, pay differe
, rates Of dividend and are the mo
nrogre ssive institutions of this cbara
Ter in the country, we can Ieaaiiy
J lieve that this decision will cover !
moat anv form of Building Associ
lion operating in any of the States.
since these decisions. the Gener
Government Is, where there is demal
g. IN proper form, re paying the eorpor
titon and income tax coleeted fre
r Associations.
The Iberia Building Association .
. emplo, ed Counsel in Washington,
,d . contip mt fee basis, to obtain
fund of the corporation and fncoi
.ey taxes paid by the Association.
While we note the favorable recc
nition ct these institutions py I
I. federal Government, and the favor
ble decisions Of the Courts, II our o
Statc there has been legislation
much interest. Notably, the Cons
stutioual amendment exempting bui
ING Associations from taxation.
have always coniended that Assoc
fsicns were exempt, and have me-
q na;S auy tax. yet our Association
seed by the Attorney of the Tax !
- rector in the District Court. l
s,,it. as you will recall, was decide
favor ably to our contention.
: Consrjtutional amendment, howeS
4 settles definitely what was vel
= lquestion-
a,he. lepislation, affecting Assoc
'ttogs. by the General Assembly
1914. was Act No. "a. authorizing
surauce Companies to lend money
Building associations.
INSURANCE Companies usually q
t.r... amoun IS Of money to lend
male loans al; more reasonable
han han ID banks. hence 1t will be Of
vantage 10 Building Associations
' lneciajly 10 those located In the la