The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1917-02-12
Reply to Billings
EDITOR THE TIMES:

EDlIOR The TIMES:
Referring to the interview with
Orville Billings of the Pacific
Building e. Loan Association of
your city, published In your issue
Of Feb. Z. regarding me and the
Washington Savings & Loan Asso-
citation of which | am president,
permit me to say that Mr.. Billings
statements, at least most of them,
are entirely erroneous, as Mr.. Bill
ings well knows.
The first section of the Chase
Bill (Senate Bill 94), about which
Mr.. Billings complains, was de-
signed to and should have the eff
feet of curbing the crooked meth
DDS of a number or fly-by-night
membership fee" savings and
loan associations of Seattle, which
have, up to the present time, cheat
ed our wage earning classes out of
tens of thousands of dollars.
j. V. Roberts of North Yakima,
attorney for the Washington State
League of Local Savings and Loan
Associations, told the committee
on banks and banking at Olympia
the other night that one of these
membership fee"
companies In Seattle paid in one
year less than $500 interest to its
members but took FROM them
about $4,000 in membership
fees" that is, they had sold"
enough shares" according to Of
ficiay reports on file in the state
auditors office, to bring to the
managers and agents as personal
profit so times as great as that
paid their members in interest. II
Mr.. Roberts is correct, and | have
not heard his statement contra
dicted, the membership" and
withdrawal fee" graft being
worked by these membership
fee" companies is the most per-
nicious form of grating which
ever got a foothold in the state
of Washington.
Now, there is no harm in the
membership fee If the member I'M
derstands it-but he doesn't un-
derstand 1t.
Here is the way it works: These
! fly-by-night membership fee" as
sociations represent they are like
the older comprehensive Wash
ington and the Puget Sound of Sc
attic, the Tacoma Savings and
Loan Associations of Tacoma, of
which Mr.. Alfred Lister is presi-
dent, etc. The solicit accounts as
savings accounts" They prom
ise high rates of interest" They
say nothing about membership"
or withdrawal fees" When the
member undertakes to get his
money he is told in many instances
that there is no money for him
because he has not yet finished
paying his membership fee."
Many thousands of dollars have
been taken from unwary wage
earners, household servants,
clerks in department stores, etc.,
by this method-and most of 1t
has been obtained on the strength
Of the good name of the reputable
savings and loan associations
which charge no fees. That is the
complaint.
If an association like the Pa
acific Building & Loan Associa-
ton, of which Mr.. Billings is the
head, explains the membership
fee" and withdrawal fee pro-
visions of its bylaws and issues a
separate receipt for the member
ship fee" SO that its members I'M
derstand just what they are doing
that is different.
AS to the Washington trying to
create a monopoly" that is
ridiculous in the extreme. We not
only do not want a monopoly, we
have done and will continue to dc
everything in our power to encour.
age the organization of Legitimate
LOCAL building and savings and
loan associations. When such as.
J sociations have as directors the
solid business men of the com.
munity there will be no question
about their prosperity and growth
and their prosperity and growth
will be faster and more satisfac.
tory II there is no membership
fee" or withdrawal fee" connect.
ed with the business.
AS above suggested, no one
perhaps, would raise objection Il
Mr.. Billings charging a mem
bership" or withdrawal fee II
he and his agents explained 1t Il
| their rnemhare uhan fbav uuyrot.