Omaha daily bee., 1921-06-19
ling. through official indifference.

thing, through official indifference.
Associations at that time were weak
and did not have sufficient means
to put on the airs and raiment OF
prosperity which commands the list
en;ng ear at the state house. Agi-
tation by association men backed by
The Bee eventually reached ten
der spot and provoked an investiga-
ton. Good results quickly fol-
lowed. Foreign associations so
called could not comply with the
provisions of the law on equal terms
with home institutions and were
obliged to withdraw their statesmen
from the state to escape prosecution.
The Foundation of Prosperity.
The law which forced the spuri-
Gus associations from the state laid
a broad and secure foundation for
the home making associations of to-
day, and upon it they have builded
a superstructure of $80.000,000 of
resources. representing the savings
of 10000 members. The effect of
the agitation for law enforcement
may be visualized in another po-
tential way. From 1896 to 1920 in
elusive, the records show total
of $77,000,000 loaned for the eree-
ton of $3.50 buildings, mostly
homes, in the state, and $4,000, ,000
loaned "for the purchasing of home
steads or the payment of home
stead mortgages"
The blight which the saving peo-
pie of Nebraska escaped a quarter
of a century ago left trails of cruel
deception and plain robbery through
out the middle west, brought distress
to thousands of people in Minnesota,
Iowa, Missouri and Kansas, and so
discredited the name of building
and loan association" in those states
that honestly managed home instltu-
tons are still struggling under the
handicap. While the states named
remain tailenders in the co-opera-
tive movement, Nebraska holds
place near the head of the process
sion of progress, ranking eighth
among the states of the union and
SURPRISING every state west of the
Mississippi and south of the Ohio
rivers.
Meeting Changing Conditions.
A revision of the original law by
the legislature of 1899 and the
amendments added in later years
enabled associations to meet chang
ing conditions and extend their use
fulness. Mutuality is the essence
of the law, and is effected by two
methods-the serial and permanent.
The serial method provides for issu-
ing shares in series, each series go
ing forward to maturity together,
and calling for regular weekly or
monthly installments. Serial shares
are the most profitable because OF
the persistent regularity of pay
ments enforced by fines and the in
creased gains derived from those
who drop out and lose a percentage
of their book profits.
The permanent plan of operation
dispenses with all serial restrictions,
leaves the members free to make
payments at will and in any sum
up to the limit. and credits each 81
with an equal share of the earnings.
Both systems allow members to
pay the par value of shares at once,
such shares in most cases receiving
the same pro rata of earnings as
installment shares. As the permanent
plan permits free Withdrawals on 50
days notice the law requires perma-
nent associations to set aside 5 per
cent of the net earnings as re-
serve fund out of which loan losses
are paid. Fifty-eight associations in
the state are conducted on the per-
manent plan, IL are serials and four
have a combination of both.
Three Legal Safeguards.
Among the many legal safeguards
thrown around these institutions