Omaha Daily Bee
All The News All The Time
Th Be glrta its readers dally
panorama of the happenings
of the wnols world.
THE WEATHER.
Fair; Cooler
VOL. XLI xo.
'305.
OMAHA, FRIDAY MORXINU, JUXE 7, 1912-TWKLYK lWUKK.
SINGLE COPY TWO CENTS.'
JL rlrv
ROSE WATER WILL
ACT AS CHAIRMAN
Nebraska Member of Republican Na
tional Committee Will Serve
Through Convention.
HOWELL CONTEST NOT TAKEN UP
Decorous as an Afternoon Tea
Opening Session of the Republican National Committee Passes
Quietly Ultra-Insurgent Strength Developed-Slight
Changes Made in Rules of the Committee.
Keeps Eight on Growing
BURDEN FALLS ON
SMALL INVESTORS
Secretary Royse of State Banking
Board Attacks Building and
Loan Associations.
No Attempt Made by Committeeman
Elect to Secure Seat.
ROOSEVELT MEN DEFEATED
First Test of Strength Shows He
Controls Thirteen States.
RULES OF PROCEDURE ADOPTED
Oue Hour Will Be Allowed for State
Contest and Half Hour' for Dis
trict Contests Hearing
Postponed Until Today.
FIRST COMMITTEE SESSION.
Republican national committee at
opening session today met at 2 p. in.
Elected Victor Rosewater chairman
of the committee, to serve until the
.national convention ends.
Did not take up question of seating
R. B. Howell of Nebraska or other
national committeemen elected at re
cent primaries and conventions.
Voted 39 to 13 to admit to hearings
only representatives of five press asso
ciations, defeating motion to admit
press generally.
Voted to give thirty minutes and
fifteen minutes per side for state and
district contests, respectively.
Defeated by viva voce vote motion
of Borah of Idaho, Roosevelt ad
herent, that eight votes should re
(luire a roll call and fixed number at
twenty.
Adopted resolutions on death of
former Chairman John F. Hill of
Maine and four other members who
have'died during the last four years.
Adjourned at 3:55 p. m. until 10
a. m. Friday, when contests will be
taken up alphabetically, beginning
with Alabama.
CHICAGO, June 6. The republican na
tional committee was called to order at
the Coliseum this afternoon by Acting
Chairman Victor Rosewater of Nebraska.
It was expected that no contests would
be taken up today; tbe work of the
committee seemed likely to be confined
to organization and adoption of rules,
including the question of admitting rep
resentatives of the press to . hearings.
Victor Rosewater of Nebraska was
elected chairman,' of the republican na
tional committee today to serve through
the convention.' Mr. Rosewater will suc
ceed the late Representative Hill of
Maine. ' " ' .,,
The .right of R. B. Howerl, who was
elected national committeeman from Ne-
braska at the recent republican primary
in that , state, was not taken up.
The committee, after a long discussion,
voted,' 40 to 13, to admit to the hearings
of contests two representatives of each
of the five press associations having ad
mission to the floor of the house of rep
resentatives. They voted also to employ stenog
raphers and make record of the pro
ceedings. Resolutions were adopted deploring the
death of Chairman Hill.
The committee then took up the ques
tion of rules governing the proceedings
of the committee and the conduct of the
hearings of contests.
Roosevelt Men Lose.
The Roosevelt people met defeat in the
first lineup. They proposed that eight
should be sufficient to demand a roll
call. This was defeated and the number
was fixed at twenty.
It was decided that thirty minutes
should be allowed to each side for hear
ing state contests on delegates at large,
fifteen minutes per side for district con
tests. .
The lineup in the first tefct vo'te in the
national committee was regarded by
both sides as significant. The vote was
not made public, but among the thirteen
counted as "Roosevelt strength" were
said to be Borah of Idaho, Burnham of
Kentucky, Wright of Louisiana. Kellogg
of Minnesota, Ward of Xew York, Capers
of South Carolina, Loose of Utah, Lyon
of Texas and Rogers of Wisconsin.
A canvass of the committee by Taft
adherents. It was. claimed, showed only
the thirteen for Roosevelt, with two more
classed as doubtful.
The committee at 3:5.") p. m. adjourned
until 10 a. m. tomorrow.
MINNESOTA HOUSE
APPROVES AMENDMENTS
ST. PAUL, Minn., June . The lowe
house of the Minnesota assembly today
adopted by unanimous vote a resolution
ratifying the amendment to the federal
constitution providing for an income tax
and the amendment providing for the
election of United States senators by
direct popular ballot. This Is the firs
work of the extra session of the legisla
ture. The Weather
Forecast Till 7 P- m. Frlday-For
Omaha, Council Bluffs and Vicinity i Fair
tonight and Friday; rising temperature
Friday.
Temperature
f at Omaha
L'jl Hours. Deg.
yQf-X 6 a. m 55
i a. rm is
8 a. m 55
9 a. m 59
10 a. m 60
11 a. m 62
12 in 63
1 p. m 84
2 p. m 64
n
3 p. m 64
Local Weather Record.
1912. 1911. 1910. 1909.
Lowest last night 54 63 55 70
Precipitation 34 0 0 T
Normal temperature for today, 69 de
grees. Deficiency In precipitation since March
1. 3.T0 inches.
Deficiency corresponding period, 1911,
3 44 inches.
Deficiency corresponding period, 1910
Inches. '
BY VICTOR
Editor of The Bee and Chairman
CHICAGO, June 6.-(Special Telegram.)
The Initial meeting of the republican
national committe convened to make up
the temporary convention roll call was
held today, but if anyone expected fire
works lie must have been disappointed.
The assembly was as decorous as an
afternoon bridge whist, and probably
produced less conversation. Only one
roll call was taken, and that on a ques
tion that was hardly vital, but went far
enough to indicate tho extent of the
untra-lnsurgent membership, which fig
ured up the unlucky number of thirteen
out of fifty-three.
The only differences manifested at all
developed, as I have already indicated.
out of the movement to give publicity to.
the contest hearings. All were agreed
that the doors should be swung open,
but not agreed as to how far open. The
rules of four years ago, which had then
been formulated and presented by a spe
cially appointed subcommittee, unani
mously adopted, were readoptcd substan
tially without change, except as to the
publicity feature. Four years ago the
hearings took place in executive session,
but with the contestants and their at
torneys present, the latter retiring at the
conclusion of the hearing to permit the
committee to reach Its decision. As mod
ified for this session, the five press asso
ciations, which together serve news re
ports to every dally newspaper in the
country, and are recognized with repre
sentation" on the floor of the house of
representatives, are to have the privilege
of keeping two working correspondents
present at all times. While this was ac
ceptable all around, and effort was made
on behalf of the Rooseveltlans through
Kellogg of Minnesota and Borah of
Idaho to admit also several correspond
ents for all the newspapers represented
In the press gallery. The chief objection
urged to this was the physical difficulty
of providing for a large number of news
paper men, the probable number being
very Indefinite, without interfering with
the committee's work. The special cor
respondents and the outside newspapers
were none the less fully taken care of
for access to the proceedings by an order
to the secretary to employ a sufficient
corps of competent stenographers to take
down everything to be said and tran
scribe it from day to day, the report to
be kept in the secretary's office, open
to the correspondents of any ' and all
newspapers and through them to the
GAMBLE CLAIK MMTION
South Dakota Senator,Says His .Plu
rality, is 2,800.
STERLING IS VERY OPTIMISTIC
Senator's Opponent Says He Has
Won by Plurality of Hilne Thou
sand Democrats Name
Johnson for Governor.
SIOUX FALLS, S. V., June 6.-Karly
this evening the United States senator
ship in South Dakota was still in doubt,
with both Gamble and Sterling claiming
the republican nomination. The pre
cincts yet to be heard from and which
will determine who is the winner arc In
remote parts of northwestern South Da
kota and t may be several days before
the returns are received.
Byrne's majority over Egan for gov
ernor now is 10,649. Byrne headquarters
claims Byrne's lead will reach 35,000.
Harry L. Gandy of Wasta is believed
to have been nominated for congress on
the democratic ticket in the Third (Black
Hills) district and C. Boyd Barrett of
Aberdeen In the second.
There Is no doubt that Edward S.
Johnson of Yankton has bei nominated
as the democratic candidate for governor.
No definite returns have yet been re
ceived on a number of the state offices.
Senator Gamble claims to have won by
not less than 2,500 over Thomas Sterling,
his nearest republican opponent.
The Sterling men claim 9,000 plurality
over Garrible, with Richards third.
Returns received show that the follow,
ing republicans have been nominated:
Congressmen Eben W. Martin, present
Incumbent; Charles H. Burke, present in
cumbent; C. H. Dillon.
Governor Frank M. Byrne.
Lieutenant Governor E. L. Abel.
Secretary of State Fred Hepperl (not
conceded .
State Treasurer A. W. Ewart (not con
ceded by G. H. Pinckney. his opponent).
Railroad Commissioner John J. Murphy
(not conceded by his four opponents).
Member Republican National Committee
Thomas Thorson, present incumbent
(not conceded by J. F. Haliaday, his
opponent).
United States Senator Claimed by both
8enator Gamble and Thomas Stirling.
The following were nominated without
opposition:
Attorney General Royal C. Johnson.
State Auditor Henry E. Anderson.
Commissioner of School and Public
Lands-F. F. Brinker.
Superintendent of Public Instruction
C. G. Lawrence.
All the foregoing are progressive re
publicans with the exception of Congress
men Martin and Burke and E. L. Abel,
who are classed as stalwart republicans.
The republican nominees for members
of the state supreme court are In doubt.
Gompers Speaks for
Compensation Bill
WASHINGTON, June 6. Samuel Gom
pers, president of the American Federa
tion of Labor, urged the house committee
on judiciary today to make a favorable
report on the Brantly workmen's com
pensation bill.
'The opposition to this measure comes
from lawyers, doctors and ambulance
chasers," he said. "Injured workman get
but 25 to 35 per cent of the money awarded
to them as damages when they are liti
gants." Detedmined opposition to the. bill has
developed. Senator Smith of Georgia.
Representative Hardwick of that state
and Representative Henry and the Texa
delegation will voice their protests to
the committee before a vote is taken.
ROSE WATER.
Republican National Committee':
worm, it anything is said or done I, t
out of the committee that the reading
public wants to know, and ought to have
and does not get. It will have to turn
some pretty sharp corners.
The disclosure of only thirteen votes
for the wide-open publicity rule, fully ex
plained the other proposal emainatlng
from the same source to reduce the num
ber entitled to demand, a roll call from
twenty to eight, and the preference of
the committee to stand on the established
precedent which Is designed to prevent
dilatory proceedings, by continuous repe
tition roll call votes without a reason
able assurance that something would be
thereby accomplished.
My election as chairman of the commit
tee to fill the unexpired term left by the
death of the late Governor Hill of Maine,
came unanimously, which I regard as
adding emphasis to the honor. I ex
pressed my appreciation In a very few
words, asking the co-operation of the
members in fulfilling my desire to pre
sideo ver their deliberations with entire
fairness. I eralise, whether others do or
not. the compliment Involved in being
allowed to hold the title of chairman
of the republican national committee, al
though only for a few weeks. That po
sition is the highest In the party organi
zation and has been held by many nota
ble men. It has rarely came west. Tom
Carter of Montana was chairman and
so was J. S. Clarkson of Iowa and if
my information is correct, I am the third
in the whole list to hall from the far
side of the Mississippi. Of those still
living who have been chairmen of the
republican national committee there are
only beside Mr. Clarkson, George B.
Cortelyou, Harry S. New and Frank H.
Hitchcock.
I am told that my successor-to-be, as
member of the committee from Nebraska,
was In town today, but as he did not
make his apeparance at tho door of the
committee's room, nor did he file any
credentials with any one In authority
to support his claim that he already the
committeeman. He has given out some
kind of a statement to the effect that he
has deferred to others In withholding as
sertion of his rights, as he thinks they
are; so be it. That Is as easy a way out
as any. In the meantime, I am prepared
to make good my previous offer to take
care of my guccessfor for admission to
the convention.
St. Louis Terminal
Kailroads Must
Comply with Law
ST. LOUIS, June . United States Dis
trict Judge Dyer overruled three motions
of attorneys for the Terminal Railroad
association of St. Louis that he did pot
have jurisdiction to enter a decree In the
case in which the supreme court of the
United States decided that the Terminal
operated in violation of the Sherman
anti-trust law.
A preliminary decree following closely
the suggestions of the supreme court was
filed by E. C. Crow, special, counsel for
the government, and arguments will he
heard on what the preliminary decree
should contain next Tuesday. If the gov
ernment and the terminal fail to agree
on a decree within ninety days the ter
minal must submit to dissolution at the
hands of the supreme court.
New Baggage Eules
Are Suspended
WASHINGTON, June 6.-New regula
tions of transportation of baggage, pro
posed by nearly every railroad In the
United States which In effect would ad
vance the rates on "excess" were sus
pended by the Interstate Commerce com
mission today. The suspension becomes
effective July 1 and continues in force
for 120 days, pending Investigation. The
new regulations not only sought to
amend the excess rates but to prohibit
the carriage of certain size pieces of
baggage. ,
The proposed regulations follow:
"On and after July 1. for any piece of
baggage . (except immigrant baggage
checked at port of landing) the greatest
dimension of which exceeds forty-five
inches, there will be an additional charge
for each additional Inch equal to the
charge for ten peunds of excess weight.
"On and after July 1, 1912, no piece of
baggage the greatest dimension of Which
exceeds seventy (70) Inches, (excepting
immigrant baggage checked at port of
landing) will be transported In baggage
cars."
The commission believes that the fix
ing by the roads of the dimensions of
bnggage will work an unnecessary hard
ship upon travelers.
IOWA BANKERS MEET IN
DES MOINES NEXT YEAR
CEDAR RAPIDS, la.. June 6.-Dc
Moines won the next meeting of the Iowji
State Bankers' association today after ;
hot fight. In which Dubuque was the
closest competitor. Officers elected wertr;
President Charles Shade. Rock R-iplds.
Vice President K. B. Yetter, Davenport.
Treasurer Charles R. Hannan, Council
Bluffs.
The association Indorsed the plan of
national citizens' alliance for a nonparti
san revision of the currency system
Adam Beilc of Minnesota was thcprln
cipal speaker at today's session.
HITCHCOCK WILL ATTEND
FUNERAL OF HUBBARD
(From a Staff Correspondent.)
WASHINGTON", June 6.-(Kpeiial Tel
egram.) Senator Hitchcock left this aft
ernoon for Iowa to join the committee
to attend the funeral of t)ie late Rep
resentative Hubbard of Iowa.
Senator Brown has been named an
honorary pallbearer for the funeral of
the late Senator Nixon
From the Minneapolis Journal.
HONEY INQUIRY GOES OYER
Committee Decides to Postpone Main
Hearing Until Fall.
DIFFICULT TO , GEV ;.s DATA
la Meantime Testimony Will lie
Taken A Ions; Certain Collateral
Maes Laughlln is First
Witness.
NEW YORK, June 6 Because of its
lack of power to obtain necessary data
the so-called money trust Investigation
In . its main scope will not be taken up
until fal). This announcement was made
by Chairman Pujo of the investigating
committee at the opening of tho hearing
in New York today.
"In view of the Insistence by some
financial institutions that the committee
Is without power to enforce demands for
Information the committee has concluded
It is lot advisable to take up the main
inquiry until all doubt as to the power has
been removed by the passage of the bill
to amend the banking law." said 'Mr.
Pujo. "The bill has passed the house and
Is now before the finance committee of
the senate.
"It will require months of painstaking
Investigation and preparation, after the
proposed legislation has been enacted, to
secure the data that is essential to the
Inquiry.
"The required data must be gathered
primarily from the books of the corpora
tions concerned and must be segregated
before witnesses can be advantageously
examined.
"The committee is anxious to avoid
exposing legitimate transactions and this
can be accomplished only by the plan
that has been arranged.
Will Walt Cnttl CnmpniRn Ends.
"The committee considers it Inadvisable
In any event to conduct this important
and far reaching economic inquiry during
the heat and excitement of a political
campaign and has not from the outset
contemplated any such course.
"The Intervening time will be devoted
to taking testlriiony on certain collateral
subjects. The relations of the clearing
house association and the stock exchange,
to the financial system and to the increas
ing cdncentration of money will be In
vestigated In the few sessions that are
to be held before the summer vacation."
From the first witness. Prof. J. Lain
ence .Laughlln. head of the national
citizens league for the promotion of sound
banking, Samuel Untermyer, special coun
sel for the committee, brought out the
statement that r.o contributions had been
made to the league's fund by J. P. Morgan
Co., or by Kuhn, Loeb & Co. Mr.
Untermyer wanted to know why and
Prof. Laughlln said merely that they had
not. been solicited.
The National Capital
Thursday June I), lit 12.
The Senatt-.
Convened at noon and adjourned at 12:09
p. m. until Friday In respect to the
memory of the Into Senator Nixon of
Nevada.
Indian affairs committee recommended
Gore bill to allow Apache prisoners of
war at Fort Sill to return to New Mex
ico The House.
Convened at 11 a. m. and resumed
general debate on sundry civil appropria
tion bill.
Agriculture expenditures committee
continued its Investigation into drainage
division of Department of Agriculture,
with Knglneer J. O. Wright of Florida
testifying.
Secretary of the navy asked for $65,000
appropriation for expense of marine ex
pedition to Cuba.
Samuel Gompers urged judiciary com
mittee to favorably report Brantley
workmen's compensation bill. r
West Virginia and
Arkansas Instruct
For Champ Clark
pARK EReBimoTwT Va!, Vu'nV 8. -"If
you can't ' agree on Wilson or Clark,"
shouted Congressman Jittlepage at the
democratic convention today, "iolftfWItU
all of us and nominate that' .deero" of
the west, William J. Bryan;" The band
had sufficient time to play .through two
pieces before the demonstration subsided
The report of tho resolutions commit
tee instructing the delegates-at-large to
vote for Clark at Baltimore was adopted
a tier the defeat of an amendment to
eliminate all reference to presidential
candidates.
LITTLE ROCK, Ark., Juno d.-By
vote of ;V)4 to 242 the Arkansas state dem
ocratic convention refused to embody tn
Its platform an endorsement of the so
called "grandfather clause" as a qualifi
cation for suffrage. Eight delegates at
large with half a vote each who, as well
as tho district delegates, were Instructed
for Speaker Clark, were elected as fol
lows. .loe T. Robinson. Lonoke; Senator J. P.
Clark, Little Koek; Senator Jeff Davis,
Little Rock; J. P. lltnemon, Morrell; II
L. Norwood, Mena; S. Hrundldge, Searcy;
J. C. South, Mountain Home; B. H
Hutchlns. Harrison.
Judge William M. Kavanaugh, LitHe
Rock, was chosen national committeeman.
Young Says He Will
Not Be Candidate
for the Senate
DES MOINES, la.. June (t.-Lafayett
Young, defeated candidate for United
States senator In Monday's primaries,-declared
In a formal statement Issued today
that he In not seeking to succeed Senator
Albert P. Cummins, either In the event
tho Iowa man should be nominated for
president or when his term expires. Mr,
Young stated emphatically that under no
circumstances would he seek a seat n
the ISilted States senate.
Oxygen Machine
Saves Woman's Life
CHICAGO, June , 6. Women who ti led
to commit suicide with gas kept ptilmotor
experts hero busy continuously today for
two hours. The net result was one fem
inine life aved and one lost.
Mrs. Sadie Dougherty, who was deserted
several months ago by her husband, was
the woman saved.. The oxygen machine
had been applied to her for more than
an hour when word was received thai
Mrs. Mary Williams had been found as
phyxiated about a mile distant.
The pulmotor was rushed to the rescue
and was worked heroically, but the double
task had not left the experts sufficient
timo and in the second case they failed.
i STUDENTS INTERRUPT
i CARNEGIE'S ADDRESS
LONDON. June fi. - Rowdy sce:;es
marked the delivery of Andrew Carnegie's
rhetorical address as l rd rector of Aber
deen university at Aberdeen, Scotland,
today.
The students, the number of whom it
large, hurled chairs and rugs about the
hall and kept up an Incessant din. sin1?:
ing and whistling, hut flnully pem,:tte'l
the ironmaster to proceed. After he had
begun- the rowdyism was resumed, but
the proceedings cloved with rousing cheer.
for Mr. and Mrs. Carnegie.
I Mr. Carnegie advised the students '
("remain teetotir'crs until jcu have be
come of afce."
HURRY REQUEST FROM CUBA
Gomez Aiki United States to Rush
Riflei aotl .Cirtridijei.
fOUB. BATTLESHIPS ON P W
Vessels Bearing- Thousand Marine
Shoald Reaeft aaaatanaino fVt-'-.:
day Cabana 6rgaaU ft ;
Voloateei Gnard. .
WASHINGTON. June .-Presldent
Gomes informed the United States
through American Minister Beaupre today
that ho Is forming a volunteer guard to
protect foreign property against attacks
by negro rebels. He asked that the
rifles he recently' ordered be Increased
from B.000 io 10,000, and that 2,000,000 car
tridges accompany them. He urged the
United States to make every effort to
facilitate a quick delivery of the rifles
and ammunition.
With four American battleships steam
ing toward Guantanamo, the force of
marines Immediately available for the
protection of foreign life and property In
Cuba Is increased to more than l,S0O,
Altogether, the battleships Minnesota,
Missouri, Mississippi and Ohio the fourth
division of the Atlantic fleet which put
out from Key West late yesterday under
command of Rear Admiral Usher, have
on board nearly 800 marines. These
ships should arrive at Guantanamo some
time tomorrow.
Twenty-Five Hundred Available.
The cruiser Prairie, which already ha
landed 4.V) men under command of Col
onel Lues s, has about 350 more on board.
The four battleships of the third division
of tha Atlantic fleet, btlll at Key West,
under Rear Admiral Osterhaus, on the
flagship Washington, have nearly 1,000
more marines, which could be moved to
Cuba In little more than a day if the
situation should demand. Roughly this
places the number of marines Immedi
ately available at about I,6n0 and the re
serve joi ce at Key West at 1,000.
The combined forces of bluejackets on
all the ships, which, however, would only
be landed In the most pressing emer
gency, easily would swell the total Amer
ican force available to more than 3,500
men. As President Gomes Indicated in
bis statement last night, the assumption
by the American marines of responsibil
ity for the safety of the foreign properties
In Orlente will relieve General Montea
guedo's army of the most onerous por
tion of Its work and will enable that of
ficer to begin almost Immediately a cam
paign In tone against the marauding
bands of negro insurrectos.
It is estimated that 1.000 American mar
ines would be equivalent to five times
that number of Cuban regular soldiers.
Man and Woman
Drown at QuinCy, 111.
yt'lNCY, ill.. June fi.-The -bodies of
1-M ward Dover, aged 21. and Miss Theo
dora Keck, aged K. were found in the
Mississippi river near QuIncy early to
day. The two young people were lovers.
Sunday evening they went for a ride in
a skiff on the river and did not return.
The recovery of the skiff floating near
Hannibal. Mo., caused a search to be
made, which resulted In the discovery
of the bodies this morning.
NEWTON C. DOUGHERTY
RESTORED JT0 CITIZENSHP
SPRINGFIELD, 111., June 6.-Governor
Deneen today restored to citizenship
Newton C. Dougherty, who was senten
ced to the penitentiary for appropriating
the rchool funds of Peoria . while city
su erlntendents of schools and treasurer
of the school board of Peoria and who
was paioledNovembr t, 101X.
CAPITALIST HAS ADVANTAGE
Institutions Said to Be Drifting
Away from Original Purposes.
SPIRIT OF MUTUALITY ABSENT
Royse Declares that Courts Would
Protect Small Home Builder.
BLUE SKY LAWS ARE DESIRED
.Nebraska Is One of Largest Center
of Activity In the tutted States,
Assets ef Institutions Being;
Twenty-Flve Million. .
Secretary E. Royse of the stale bank
ing hoard yesterday afternoon attacked
the methods employed by some of tho
hulldlng and loan associations In Ne
braska In a speech before the state con-,
v'entlon. He said,' "In my opinion the
home builders of the state who are as
sisted by the associations are not reeelv.
Ing an equitable advantage In mony
matters." . '
Mr. Reyse found fault wltb the majority
of the associations because of the fact
that a larger per cent of Interest Is paid
on the paid up stock than on that which
is not paid. He argued that the small
investor of a few dollars should receive
as much Interest as the man who Invests
thousands. This system does not'prevail:
In most cases. He said In part; :
Experiment Stage Passed.
The building and loan associations of
Nebraska have passed the experiment
(tage. Ten years ago the assets of these
companies were but $4,000,000. Today as.
sets are $26,000,000 or an increase of
$2,000,00 per annum. The building and loan
associations have . taken their position
among the permanent financial instltut
tlons of the state. ';
"However, these associations have afci
rived at a degree of maturity that rift .
quires a closer scrutiny of the underly
Ing principles of the business, the pu'r
poses and the equities involved, than was .
fair to hold when the association wa.
struggling for a foothold. ' i'i
"The fundamental principle underlying
building and loan associations Is thf
encouragement of.homeb ulldlng and the '
reason for tJsalr being Is that they opw
the door of opportunity to the homeless
to become home pwnerr and any praor
tlca Of other legal enactment that Hi
any way interieres witn tnis lunaamenv
tal purpose Is ' fit variance with tha "
correct HAjiic n4,loan ide. ;
,,, iyj,;!,,, Mutoaiitr.
"The building- and load association also
hal fof a fundamental principle the ab
solute mutuality of all shareholders, and
any, practice or any legal enactment at
variance with this principle violates the
.I'm jirn ut iiicne uBauvmiiunB.- '
"A summary of the report of the as
sociations shows that approximately one
half of all the tock issued by associa
tions of the state Is fully paid for, or
paid up or matured stock, disclosing the
fact that the so-called Investment public
Is attracted to these institutions by a
better rate of Interest than they can ob
tain elsewhere. This shows conclusively
that the associations are drifting away
from the original purpose of their cre
ation. They should be brought back to
where they will beoperated along the
lines agreeable to the basic prlclples that
brought them Into existence, that of
furnishing opportunity to the wage
earner, a place for the small savings
of the people, and In the Interest of the
homeb ullder. The high rate of Interest
paid Is attractive to the Investment pub
lic and burdensome to the home builder.
"As a matter of fact, wherever a build
ing and loan association agrees to pay
a fixed rate of Interest It violates the
mutuality that should exist among Its
members,' and should Its earning, power
fall to be equal to all shareholders the
courts In mv oninlon would oulcklv nrn.
tect the Installment shareholder toy de
priving the full-paid shareholder of tha
right to take a rate higher than his un
fortunate associate would obtain. In
other words the - creation ot preferred
stock In a building and loan association
would destroy Its mutuality.
Remedies Are Sngrsested.
"The- remedies' I : would suggest would
be: First, to place a limit on the amount
of full paid stock that could be Issued
by an association to-a certain per cent
of Its total assets, say 30 per cent, which
Is the amount fixed In some states. This
would be a step towards conservatism;
second, to require that all contracts made
In the Issuance of full paid ?!: spe
cifically provide .that . the rate agreed
upon not exceed the average dividend
paid by the association to all stock
holders. ...
"In my opinion the home builders of
this state assisted by building and loan
associations 'are' not receiving an equita
ble advantage now prevailing in money
If you are going to
advertise on Sunday,
remember that the,
circulation of The
Omaha Sunday Bee is
greater than that of all
the other Omaha Sun
day papers that Tht;
Bee goes into more
Omaha homes than all
the other Omaha papers
combined.
What's the difference!
Simply jthat a want ad
in the Sunday Bee will .
bring you far greater
results.
Try it Sunday.
Tyler 1000
JJ
