Evening journal., 1919-08-15
PA. SEXES TWO
Home loan COS.
Many Wilmingtonians Are
Stockho' d.rs in the
Corporations

HARRISBURG, Aug. i5-The Home
Builders Union and the Co-operallNo
League Of America. both Pittsburg con
Germs has boon taken over by Banking
Commission John 4. Fisher on the
ground that they woro not only In un-
sound condition. but woro operating on
an unsound basis. The two companies
purportod to bo trust associations,
whose contributors created a fund to
be lent 10 home owners at low rate
Of interest
Examiners for the banking depart
ment discovered that the Home Build
ers' Union, In existence sixteen months
had taken IN $4,000 from contributors
and $4,000 from the sale OF stock. In
that period $4,000 had been paid out
In salaries and commissions. and some
$4,000 had been paid out for "adyertis-
ing" The assets OF the concern were
placed at s26,26i. The Cooperative
League OF America had been operating
longer, had taken In more money, but
,, was maintaining the unions average
OF salaries and commissions.
Both concerns have been operating In
Ohio, Indiana, Virginia and Delaware
and in various parts OF this state.
Commissioner Fisher said that the
banking department cannot permit
companies advertising themselves as
agencies that are accumulatlng funds
/ for home builders 70 spend for salaries
and commissions large sums given them
for permanent investment.
The two concerns at the time they
were organized were outside the iuris-
dlctlon OF the State banking depart
ment. They were trust associations
not building and loan associations. The
banking law passed by the last legisla-
/ ture. however. gave, the state banking
department Jurisdiction over such con-
Germs, In all instances In which the at
| tOrney generals ofilce authorized the
State banking commissioner TO take
| possession.
Both companies had a hearing before
Deputy Attorney General Myers on
July i6. Both were found In unsafe
condition, and the banking commits
sioner was authorized 10 take action
today. Second Deputy Peter Cameron
being named the special agent In
| charge.
The two companies, while they did a
business SIMILAR TO that done by build
ing and loan associations, operated as
a deed Of trust and were not bound by
building and loan association rules
1.-The companies carried two funds
general fund used for defraying eX-
penses and the trust" fund. The pay
ments were made on two plans. one
called for 30 cents a month for ever
, siOO Of policy. and the other called 10
b 81 a month for every 500 OF policy
When 5000 had been paid in the serie
ended.
Contributors gained an option 10 hol
row money at 3 per cent TO bull
, homes. These options could be Use
or sold. The rule OF the Builder:
Union was 10 apply the first four pay
ments 10 general expenses" The neN
hve went into the trust fund. The
were 10 be used for loans, and mad
the basis OF the options. according 3
the testimony az the hearing.
The building and loan rule Is tina
the surrender value OF shares for poll
cies must be equal 10 the amount pait
in. Up to thu twelfth month the uniol
shares had no surrender value. In IN
twelfth month they were $50. although
$40 had been paid IN. In twenty-fou
months the surrender value was Si6s
although $40 was paid In.
The 3 per cent. idea for loans on
homes was the dure that enabled th'
builders union and the cooperative
league 10 do business.
In the cooperative league some 81
the trustees. the founders Of the con
Hcern, received as high as 81 200 month
1.-THE officers Of the Home Builders
Union are Roland Robbins, president
d. A. Findley. vlce-president; F. ID
Irons. secretary-treaslirer The league:
officers were Charles 2. Succop, presi'
dent: A. z. Hutchinson, vlce-presldent
rand Harry J. Bovard, secretary-treas
urer.
Many Wilmingtonians are stockheld
ers in the Home Builders Union and
/ tho Co-onprafiv,a TpartIo Of America