not understand this because the building associations of Cincinnati have taken little trouble to grow or increase their assets, and have been satisfied to take the small mite the saver has given them and to let it go at that. But the people are interested in the matter. It is not purely a matter of whether the associations care to grow-they must grow-and you and I must see to it that they do grow so as to be able to take care of the home financing demand. We must carry this message to the people." COMPLYING WITH THE TREASURY DEPARTMENT RULING. To meet the requirements of the Treasury Department Secretary C. E. Russell, of the Perpetual Savings Association, of Urbana, Ohio, sent the following letter and subscription card to all borrowing members: The U. S. Department of Internal Revenue has recently ruled that building and loan associations making loans to others than members will be required to pay a tax under the Federal Income Tax Law. It is, therefore, necessary that you, as one of our borrowers, should become a member of our association. Under an opinion of the Ohio State Department of Building and Loan Associations, the mere subscription for stock does not constitute membership, unless a payment is made on the stock subscribed. We are enclosing herewith subscription blank which you must sign and immediately return with one ($1.00) dollar or more, for which we will issue you a Running Stock Pass Book, and place the same in your hands. You may, however, add to this account from time to time as you may desire, but, $1.00 must remain to your credit until your loan has been fully paid. In the meantime your account will earn our regular rate of dividend, which is now five and one-half (51⁄2%) per cent. This is a small matter for you, and may save thousands of dollars for the association. We expect that you will do this gladly in appreciation of our efforts to maintain the old interest rates on our loans against the prevailing higher ones. It is imperative that you give this your immediate attention. No. I hereby subscribe for.... .shares of stock of the Perpetual Savings Association of Urbana, Ohio, subject to the constitution, by-laws, rules and regulations of said association, effective from.. .date of my loan from said association. Signature Address Remarks Date.. RUNNING STOCK "DURING my younger years I made good money" but I never gave a thought to the future. I had never learned the value of systematic saving in a building and loan association. I had never learned that a little put away at regular intervals would in a comparatively few years amass a snug fortune. And now I am paying the price. MANAGER WANTED. Prefer young man willing to grow with a young association having good prospects. Must have some experience, preferably in Missouri, and able to do promotion work. Give age, experience and reference in first letter. Will be held confidential. FEDERAL BUILDING AND LOAN AssoCIATION, 535 Scarritt Building, Kansas City, Missouri. Holding Board Meetings. Extracts from a Paper read by J. B. DOLLISON, before a meeting of Ohio Building and Loan Examiners. May not these lines upon this subject be prefaced by the analogous determination, that a director of a corporation is one appointed to manage the affairs of that corporation; directors-a board appointed to manage the affairs of a corporation; the directors of a building and loan association, a board elected by the stockholders to manage the affairs of such association. The "Holding of Board Meetings," as captioned here, seeks to discuss the relation of the State Departmental Division of Building and Loan Associations, through its representatives in the field, to the boards of directors of building and loan associations, which have to do with the management of the affairs of such associations; and to discuss that immediate relation which centers around the termination of an examination of the affairs of such corporation, by the state department representative. The manner of the presentation of conclusions to a board of directors savors of individuality; mannerisms are distinctly individual, and the manner in which conclusions are presented to such boards by examiners, is personal, and is within the power of the examiner to impress or depress, enlighten or confuse the board, as his general nature may dictate. Therefore, may not this paper outline the importance of the presentation of the revelations of an examination by the state department, to the boards of directors, rather than the manner of such presentation? The laws of the different states impose varying responsibilities and liabilities on a board of directors, and not infrequently fix personal liabilities for a director for any loss to members caused by his neglect to comply with the provisions of the law. Furthermore, every director is concerned in his company; he is appointed under the statute to manage the affairs of his company and is concerned in its legitimate progress as he sees it; concerned in the setting aside of as large a dividend as possible to make a showing for his company; himself a participant. Now, what is the duty of the state departments, through its examiners, to such boards? At first thought you would say the department is for the protection of the public-the depositor, and the stockholder. Against whom? You say against the manager of the affairs of the company, the director. He is usually a prominent business or professional man. He has his own affairs pressing in upon him, he is willing to become a director of an institution which has for its purpose and aim the building of houses in the community; and might it not be true that the state department owes him something; owes him its services, its full investigation, its full revelation, so that his liability becomes less of misinformation, and more of positive understanding? Such a man, with such responsibility, with such liability, with such broad aim in life, should be set right, should have the assistance of the state department in the performance of his duty; should know, through the succeeding investigations on the part of the state, the status of every detail of the institution over which he presides, yet may of necessity entrust to the figures of others. Shall we, as examiners, present our findings to the board of directors only when we have criticisms to offer? Shall they not have the benefit of our investigation in detail; that which stands out as merit to their efforts as well as demerit? Outline to them the procedure of the examination, the manner and means by which such conclusions are sought and at which they are arrived? The elucidation and determination of the condition of each fund-the reconciliation of each department under their care? Should it not, in conclusion, resolve itself into a council chamber, the examiner unfolding to this responsible body, the detailed workings of the institution, which is usually the pride of their lives? Bring the Department close to the company's chosen managers, in the spirit of co-operation, the spirit of counsel and the spirit of fairness? It is not our duty to protect the board of directors, who are personally liable to patrons, by the most .extended information in our power to impart? Representing the public? Yes; but also place in the hands of the directors the strength of information, the consummation of an unbiased investigation. Courteous counsel, serviceable suggestions, pleasing presentation, honest convictions, candid understandings brings the field closer to the Department and makes for the elevation and perpetuation of the great cause of home-building, the cementing of interests, the building of standards for this-Ohio's greatest boon for the common people. Building Associations in Delaware. State Bank Examiner Geo. L. Medill, of Delaware, in his annual report to the Governor on the condition of the financial institutions of that state, sums up the building and loan situation as follows: "Building and loan associations provide an instrument for systematic savings for the people of the state in a safe form and yield often better than six per centum upon the funds invested. The chief purpose of such institutions, other than that of encouraging thrift, is to furnish credit facilities for home building and home buying. While it is true the banks and mutual savings institutions of our state furnish funds in large amounts for these purposes, the building and loan associations are needed to supplement the funds available from the banking institutions, and they should prove a great boon to the individual who desires to acquire a home with the outlay of small capital and gradually pay for it by the means of systematic savings from his monthly wage. I believe it is conceded by students of sociology that the home owner is comparatively safe from becoming imbued with the ideas of socialism, bolshevism and other 'isms' that are threatening the body politic of this great nation. Consequently, any institution which encourages and facilitates our wage earners to become home owners is rendering a service that will aid in strengthening the foundations of good citizenship. "At this time there are twenty-four building and loan associations actively engaged in business within the state, showing combined resources of $3,945,522.00, of which $3,797,858.71 is invested in loans to members. They are geographically located as follows: City of Wilminton (6) $1,777,495.51, Rural New Castle County (9) $1,312,107.77, Kent County (4) $646,063.59, Sussex County (5) $209,855.13. "From these figures it would seem that Wilmington, with its large population of wage earners, and, consequently, the demand for large numbers of moderate priced houses, is delinquent in its use of building and loan associations. It is encouraging to note, however, that recently there has been organized there an association of progressive citizens, known as the 'Building and Loan Information Bureau' with the object of bringing about the more extensive use of well managed building and loan associations for meeting the needs of real estate bargaining and to suply funds for home buying and home building. This department has endeavored to impress upon those planning to organize such institutions, that while it should be the duty and the desire of a supervising authority to encourage all well meaning and properly managed associations, yet to caution them that in their zeal to multiply the number of such associations it must be kept in mind that their policies must be within the bounds of safety, and that this department will frown upon all attempts to organize any associations that do not have the prospect of being managed in such a manner as to properly safeguard the interests of the many prospective small investors. "A new building and loan association code was enacted by the Legislature during the session of 1921. This law was enacted upon the suggestion of this department and was designed for the purpose of providing proper supervision and regulation of such institutions, and to encourage and strengthen the activities of such domestic institutions in the state, and to bar from operating in the state foreign companies with their various schemes of obtaining money from the public. These laws should give domestic building and loan associations more stability and a larger enjoyment of public confidence." Our Slogan. "The American Home, the Safeguard of American Liberties." T-he American who is paying rent H-as worry from landlords, much discontent- A-merican Homes, may their owners increase! M-ay renters "wake up from their dream of peace" "It's never too late to mend" we are told, C-ringe not, but like good Ben Adhem be bold, A-nd call on some loan-they want you to borrow, N-ow is the time, don't wait 'till tomorrow. H-ow much help loans are to every city O-r town is not known, and there's the pity, T-he investor in loans can feel secure, S-avings, whether they're in loans or banks, O-f remorse there's much for those lax in ways, A-mericans, list to our wise advice, M-ake resolve to buy homes at any price, C-overing your home that's bought with loan shares, L-ist to our plea just a little bit more, I-t "gets you in bad" if you're getting sore, R-egrets will be yours if you drift about T-o the end of your days paying rent out.- ought to. |