The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1927-05-25

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 50 per 500
share which greatly discourages those
who would exploit the good name of
building and loan.
A reserve fund is compulsory.
Operating expepnses are limited to
IN per annum, and must be paid only
from earnings. No deductions can be
made directly or indirectly from the
principal sums invested.
Applications for charters must be
submitted to the state securities COM
missioner and hearing must be held
the same as for bank charters. Thus
existing associations may and do con-
test each application by procuring
evidence of the fitness of the appli-
cants and the need for such new as
ISOLATION. Moreover, at least per
cent of the authorized capital must
actually be paid in before new as
ISOLATION can commence operation.
have a considerable financial "stake"
in the enterprise gives liberal assur-
ance to prospective investors for con-
tinued operation. The new code raises
the standard of building and loan in
stitutions of this state above COM
merclaiism, ranking them with gov
eminent and municipal securities in
safety with most excellent profit
to the investor.
Minnesota associations are truly
cooperative organizations without
any preferred stockholders. They &C
cept the humble workingman's twen-
ty-five cent piece as cheerfully as the
millionaire's thousands, and pay to
each exactly the same return and pro-
vide for each the same security-dis-
tributed first mortgages on homes.
Under the new Minnesota code,
more or less than investment
trusts" purely cooperative in princi-
pie and managed by board serving
much in the same capacity as trustees
of church or library, or other bene-
ficent public institutions.
/ A comparative abstract report of
the conditions of the SO building and
loan associations of Minnesota is
sued by A. j. Veigel, commissioner of
banks, on December 81, 1926, strik-
ingly brings to light the unusually
solvent condition of all ASSOCIATIONS in
the state.
The total resources amount to $2o,-
! 643, 207.90, an increase over the past
year of $3,43O,5 46.21. $25,334, 429.26
of the above resources are invested in
mortgage loans, virtually all on
homes and distributed into 1906 sep
arate loans, averaging but $1,8O9
each. An additional $2,216, 125.7S is
invested in government bonds or car
ried as cash on hand or due from
banks.
The reserve fund and undivided pro-
fits account together aggregate ST.
OS4, 670.43.
The amount actually invested by
stockholders, together with dividends
due thereon, and the amount of Dor
rowed capital together with interest
due thereon aggregate $40, 750. 813.46.
Out of the total resurces exceed
ing $4,000, 900, only $50, 174.64 is due
from members on loans or incidentals.
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 $40, 922.64, or exactly one
fourth of one per cent of the total re-
sources-self-explanatory of the ex-
cellent profits paid to investors-and
indicates that they have practiced as
well as preached thrift and economy
The associations of the state are
now bound into a League of Loca
Building-Loan and Savings Associa