The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1927-05-27

tons, publicly controlled, and organ
lied solely for the purpose of accumu-
lating funds to be loaned to their
members upon their homes or upon
other improved real estate, +s**s and
furthermore provides that, hereafter
no such corporations shall be organ
izec or operated for any such real or
nominal purposes otherwise than as
herein prescribed"
They are supervised the same as
banks; their operations are limited to
the county, except that application
may be made to the state securities
commissioner for the extension of
charter within the state after a hear
ing has been held to determine the
need for such added territory.
Dealing in real estate is prohibited.
Service fees are limited to 81 per
500 share which greatly discourages
those who would exploit the good
name of building and loan
A reserve fund is compulsory. OPP
Grating expenses are limited to 212 20
per annum, and must be paid only
from earnings. No deductions can be
made directly or Indirectly from the
principal sums invested.
Minnesota associations are truly
cooperative organizations without
any preferred stockholders. They
accept the humble workingman's
twenty-five cent piece as cheerfully as
the millionaire's thousands, and pay
to each exactly the same return and
provide for each the same security
distributed first mortgages on homes.
Under the new Minnesota code,
these associations are now nothing
more or less than investment trusts,
purely cooperative in principle and
managed by board serving much in
the same capacity as trustees of a
cient public institutions.
The total resources amount to $685.
643, 207.90, an increase over the past
year of s3,430,546.21. $685., 1926
of the above resources are invested
in mortgage loans, virtually all on
homes and distributed into 1906 sep
arate loans, averaging but s1,S09
each. An additional s2,216,1257S is
invested in government bonds or car
ried as cash on hand or due from
banks.
The reserve fund and undivided
profits account together aggregate
81, 0S4, 67043.
The amount actually invested by
stockholders, together with dividends
due thereon, and the amount of bor-
rowed capital together with interest
due thereon aggregate $26,750, S13.46.
Out Of the total resources exceed
ing s2S,000,000, only sS3,174.64 is due
from members on loans or inciden-
tails.
The strictly non-speculative nature
of these institutions and the wide
margin of security they provide for
their investors is clearly evident from
the above figures.
OF outstanding note is the fact
that the total expenses of operation
of these associations for the past
year was only s7O,922.64, or exactly
one-fourth of one per cent of the total
resources, = self-explanatory of the
excellent profits paid to investors
and indicates that they have prac-
ticed as well as preached thrift and
economy.
The associations of the stete are
now bound into League of Local
Building Loan and Savings Associa-
lions, whose principle function it is
to maintain eternal vigilance over
the conduct of each individual asso-
citation by seeing to 1t that each as
ISOLATION at all times operates in
strict compliance with an established
code of ethics.
Minnesota in natural resources Is
the richest state in the Union.