8 X
Savings Bodies
Of State Strong
: After Weak Start
.Wise Governing Statutes and
Capable Development Make
; Nebraska Outstanding
State in West in Banks.
By THOMAS J. FITZMORRIS.
BgDdlnr, SaTlnfi and Loan AMoclatlon.
Greetings and well wishes to The
Bee on its golden anniversary!
These words carry a little more
I the heart touch than many greet
ings prompted by the occasion.
They are intended to salute with a
magnum of good will the present
day makers of The Bee and to ex
press the writer's abiding reverence
for the memory of the founder, his
character and public services.
A review of the forces responsible
for the upgrowth of the building,
savings and loan associations of
Omaha and the state at large would
be incomplete without a frank ac
knowledment of the services of The
Bee in their behalf. Long associa
tion, with Edward Rosewater and
the; working staff of the paper ena
bles me to speak of it from intimate
knowledge. The master builder of
The Bee was himself a wage worker
far. into manhood's years and an em
ployer whose working hours ran
(rnm cun.tm tn tnidnicrlit- Hi svm-
lail th nnr nf personal exoerience.
It -was genuine and sound to the
rn anH fntinrt tvnrpssinn in manv
practical ways designed to advance
their welfare.
None better than he appreciated
the; importance of saving as the first
step toward -better things, while the
home he visualized as the fountain
source of family happiness, inde
pendence and stability. It was quite
natural, therefore, that mutual asso
ciations, promoting the virtues of
thrift and home-getting should en
joy1 the encouragement of editor-in-chief
and the freedom of the columns
of The Bee.
Checkmaking a Plague.
Jit is not too much to stay that
The Bee was one of the few influ
ential forces which united in rescu
ing mutual associations of the state
from the blight of dishonest foreign
concerns, bearing similar names,
which spread like a plague over the
middle west in the early '90s. These
concerns were prolific in promises
and mighty shy of performance.
Their salesmen flocked into Nebras
ka from Minnesota, Illinois, Iowa
and Missouri, and led a host of rain
bow chasers within vocal distance
of -the fabled pot of gold, meanwhile
trimming them to a finish. The ag
gregate of easy money scooped up in
that period is not comparable with
the golden stream poured out by the
gullible in the boom days of sales
manship in 1919-20. Increased num
bers must be taken into account, a
fact which lends an air of prophecy
to r Barnum's census, 1 "One is born
evry minute."
The law 6f 1891 governing mu
tual associations was designed to
safeguard home institutions from
dangers theft apparent. For many
months the taw remained a lifeless
The Law of Success Is
Simple but Definite
In tha measure
47o Paid on
Savings
Accounts
Interest compounded
quarterly. Funds
subject to withdraw
al without notice.
Deposits protected
by Depositors' Guar
anty Fund of the
State of Nebraska.
American State Bank
Eighteenth and Faraam Streets
D. W. GEISELMAN, FYaridant D. C CEISELMAN, Caahlar
H. M. KROCH, Aut. Caahlar
WE ARE
By Comparison
BUT our growth and development dur
ing our eleven years of existence has
been steady and persistent. .We
passed the million mark last year.
If you want to finance the purchase or
building of a home, let us show how we
can serve you. We pay 6 on savings.
Bankers Savings & Loan Association
1505 Farnam Street
We Pay 6 on Savings and
Help You to Own Your Own Home
STATE SAVINGS and LOAN
ASSOCIATION
Ground Floor Keeline Building
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
ening ear at the state house. Agi
tation by association men backed by
The Bee eventually reached a ten
der spot and provoked an investiga
tion. 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 salesmen
from the state to escape prosecution.
The Foundation of Prosperity.
The law which forced the spuri
ous 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 120,000 members. The effect of
the agitation for law enforcement
may be visualized in another po
tential way. From 1896 to 1920 in
clusive, the records show a total
of $77,000,000 loaned for the erec
tion of 38,530 buildings, mostlv
homes, in the state, and $98,000,000
loaned "for the purchasing of home
steads or the payment of home
stead mortgages."
The blight which the saving peo
ple 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 institu
tions are still struggling under the
handicap. While the states named
remain tailenders in the co-operative
movement, Nebraska holds a
place near the head of the proces
sion of progress, ranking eighth
among the states of the union and
surpassing 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 $1
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 30
days' notice the law requires perma
nent associations to set aside 5 per
cent of the net earnings as a re
serve fund out of which loan losses
are paid. .. Fifty-eight associations in
the state are conducted on the per
manent plan, 12 are serials and four
have a combination of both.
Three Legal Safeguards.
Among the many legal safeguards
thrown around these institutions
that yon ! work!
will b rewarded ia return.
(J Hidden in the minds and hearts of men
Ji are thoughts and talents waiting to be
utilized; a great untouched mine of
human resources that will yield progress
and achievement as its wealth is brought
f A vital and necessary factor in the de-
velopment of men and women is Capital
and Capital enlarges our field of en
deavor, and provides the key to the
door of those opportunities that would
otherwise remain beyond our reach,
ff Capital in most instances is accumulated
J by the slow process of saving until the
sum grows to such size that it can be
employed to effect a worth-while result
ff If you have not begun your savings ac-
count, do so without further delay, and
open it with this bank, where courteous
attention goes hand in hand with a re
i liable institution.
YOUNG
With The Bee
three deserve special consideration.
The first of these, one generally
overlooked, is tucked away in the
section of the law governing with
drawals. After setting out the terms
on which withdrawals can be made
the law adds this saving clause:
"At no time, however, shall more
than one-half of the unloaned funds
in the treasury be applicable to the
demands of withdrawing sharehold
ers without the consent of the board
of directors."
The purpose of this proviso is
quite clear. It gives directors power
to checkmate panic among the mem
bers and render a run on the insti
tution useless. On two occasions
this safeguard was quite generally
invoked once in 1895 and again
in 1907, and proved notably effec
tive. The second line of safety consists
of state supervision and examination.
Examiners of the bureau of banking
check association books- at least
once a year, or oftener if the need
arises. State supervision extends to
the articles of incorporation, the
constitution and bylaws, each of
which must comply with the law as
the bureau interprets it, and no sub
sequent change is effective without
official approval.
The third safeguard consists of
mutual self-interest, mutual helpful-,
ness and first mortgage security
based on the homes of the people.
Notable Progress in Omaha.
The associations which have
grown up with growing Omaha are
esteemed the country over as mod
els of mutuality and prosperity. Four
of them were tested in the crucible
of 10 mighty lean years of the '90s
years combining financial stress,
drouth, crop failure and unemploy
ment The strongest and the weak
est of state savings banks herea
bouts went to the wall, each adding
to the tenseness of the financial
squeeze. Yet the associations
weathered the prolonged storm,
came out of it with very little loss in
resources, but vastly improved in
prestige and public confidence.
Twenty years of progress and
prosperity followed that remarkable
test of strength and safety. Asso
ciations grew in numbers and in bus
iness. Ten associations with head
quarters in Omaha at the present
time have resources exceeding $50,
000,000, or $259 per head for every
person counted by the census takers
in Omaha 15 months ago. Prac
tically all of. this money is employed
in the upbuilding of the city, in
creasing the hosts of saving people,
multiplying the number of home
owners and energizing all currents
of trade.
From 1910 to 1920, inclusive, 11
fiscal years, official reports show that
nine association in Omaha made
loans for the erection of 10,655 new
buildings, most of them in the city
and nearly all of them homes.
"Institutions which are devoting
their resources and their exclusive
endeavors to providing homes for the
people," writes John B. Sparrow"
are rendering incalculable service for
humanity, the benign influence of
which can only be measured in the
history of generations yet unborn."
The White House in Washington
has a fleet of nine cars: The presi
dent's touring car, laundaulet and
limousine, for the use of his family
and guests; the secret service car;
the secretary's touring car for the
use of himself and family; the "of
fice" car, for the official use of as
sistant secretaries; an electric run
about and two small trucks for
hauling supplies, etc
'I Ukd
THE BEE: OMAHA, SUNDAY. JUNE 19, igax.
Electric Tube
To Speed Mail,
j Inventor Says
Postoffice Department Inves
tigates Carrier Which In
ventor Claims Can Be In
stalled All Over Country.
New York, June 18. A mode of
transportation has been developed
which will, in point of speed, affect
the commerce of the United States
as radically as did the practical ap
plication of steam to water transpor
tation, according to claims by the in
ventor. The new plan, which is known as
the Canton Transmission System, has
been demonstrated by the inventor,
Allen A. Canton, a New York elec
trical engineer, who would supplant
the pneumatic tube by applying elec
tricity as the main motive power.
Canton proposes the construction
of electric tubes four feet in dia
meter, which will be laid just below
the surface along the right of way
of the main railroad lines of the
country. Through this tube, carriers,
nine feet in length and built of steel
will be operated and used for carry
ing mail, express and freight
Given to Hays.
The new system whose merits have
been presented to transcontinental
railway managements, was laid be
fore Postmaster-General Hays by the
inventor recently and is now under
advisement for the rapid transmission
of mail and parcel post. One of the
measures to be urged in the present
session of congress will be the adop-i
tion of such a plan.
The postal pneumatic tube system
Dividends
Credited or
Paid January
1 and July 1
THOS A. FRY, Preldent
OFFICERS AND
MAJOR R. S. WILCOX
Browning King A Co., 15th and
Dougla.
C F. BRINKMAN
AsaUtant Cahler U. S. National
Bank, 16th and Farnam.
O. D. KIPLINGER
Cigar and Tobacco, 1808 Farnam.
BARTHOLOMEW JUL1EN
Ooneral Foreman Car Department,
U. F. Railroad.
Bee, although die heads of the company have
spent long careers as citizens of Omaha.
A decade is a sufficient period to test the
policies of a business house. These ten years
have demonstrated the success of HOME
BUILDERS' Plan.
With assets of more than $1,500,000.00,
HOME BUILDERS is a strong institution.
It has constructed and assisted in financing ,
many large buildings in the city and thereby
contributed toward the development of Omaha.
This activity has given employment to hun
dreds of craftsmen and has enabled thousands
of investors to place their funds in safe, prof
itable, mortgage-secured investments.
HOME BUILDERS pays 6 per year
to the owners of the company's preferred shares
and to the holders of the first mortgage bonds
administered by ,the company. Any amount
from $1.00 up may be invested in the shares.
The bonds are in denominations of $100.00
to $5,000.00.
Money placed in HOME BUILDERS
is used locally and therefore stimulates busi
ness in the Omaha marketing area.
Yon are invited to invest your surplus
I
funds in HOME BUILDERS, no matter
how small or large the amount may be. Your
money will be employed to the advantage of
the community, and you will be paid the high
est return compatible with safety.
mse JKtSIcferff
Se-e JNCORBOrW6Q "
Dodge at 18th, Omaha
Assets Over $1,500,000
. C C. Shinier, Pres. G. A. Rohrbough, Sec-Treat.
AMERICAN SECURITY CO.
Fiscal At-enta
had its first installation in Philadel
phia in 189.1. New York got its first
tubes in 1S98, and it was followed by
Boston, Chicago and St. Louis. How
ever, it is generally known that the
pneumatic form of transportation has
many disadvantages, and among
them are the very high cost of in
stallation. Then, again, the pneu
matic system operates at only short
distances and one carrier in trans
mission occupies the entire plant
until it has passed through. It re
quires very large and expensive
pumping stations, and because of the
fact that the carriers must fit snugly
in the tubes, the speed is limited and
the carriers often stick in the tubes,
necessitating expensive repairs and
delay.
Five-Ton Capacity.
Describing his plan in an interview,
Inventor Canton said:
"The carriers are nine feet in
length and are made of steel, with a
capacity of five tons, and can be
transmitted singly or coupled togeth
er in trainloads of from 10 to 50 car
riers. The first carrier has lock
switches on it, which are set for any
particular station, and as it reaches
that station it is automatically
switched from the main line on to its
destination.
"There is one rail used for keeping
the carrier in position and two smal
ler rails for carrying the necessary
current. Snowstorms and electrical
disturbances have no effect on this
system, which offers at the present
time the best solution to the problem
of perishable freight."
Coast-to-Coast Tube.
Canton is one of the developers of
what is known as the half-watt lamp,
now in use throughout the world,
and is the original inventor of the
"wireless telautograph," used in most
navies. He also invented the mul
tiple unit control system for trains,
parts of which are in use on every
electric railway in the country.
It is Canton's belief that a tube can
Nebraska
Savings and Loan
Association
A mutual institution composed of thrifty
people, whose savings are devoted to jnaking
OMAHA A CITY OF HOME OWNERS.
Thirty-six years In business without the
loss of a dollar to shareholders.
Assets, Jan. 1, 1921, $1,901,022.25
One Dollar starts an Account. Any snm
up to $5,000 received. Money loaned on
Omaha homes. Reasonable terms Prompt
Service.
JOHN R. BRANDT, Secretary
DIRECTORS
WILLIAM G. URE
Ex-City Commiuioner.
THOS. F. GODFREY
Paaa. Agent M. P. Railroad, Flrt
National Bank Bldg.
BYRON R. HASTINGS
Halting & Hey den. Real Estate,
1614 Harney.
THOMAS J. FITZMORRIS
211 South 18th St.
IOME BUILDERS' tenth anniversary
occurred on April 21. It is a youthful
institution compared to The Omaha
be laid from coast to coast within the
period of a year with the proper fa
cilities, and that inasmuch as it is by
rj.a means a subway proposition, but
simply an unaeriaKing iraugni wmi
no greater labor than the Standard
Oil company would meet in laying
a pipe line, the work might be com
pleted within that time. The tubes
can be hung under railway bridges,
to'
Or
Br
frl&1 y Paul W. Kulwt, President
:T E. A. Baird, Vice Pre.
An Institution That Grows
i -
by Helping Omaha to GROW
'
' inFTiiiiFiRnwnFf! i
1-1 r"
rffs
a Th, O mill a Lou and Bulldiof Astodatton BulbBaf at tha NorthwMt Co row af
Doda ami Fifteanth Straata aa It Will Appaar Whaa tha Twa
S Additional Storlaa Ara Complatad.
Saving Money to Build Homes
Savings accounts may be opened at any time In any amount from
$1.00 up to $5,000.00.
Loans made on improved Omaha Heal Estate.
Omaha Loan and Building Ass'n
The Oldest Savings Institution in Omaha
, W. R, XDAIR, President
. T. HELGREN, Vice President A. A. ALLWINE. Secy-Treas.
Dodge and 15th Streets
and this would avoid excavation
under river beds.
The Automobile club of Southern
California, which has a membership
of 70,000, is behind a state-wide
movement to punish by arrest
motorists who discard lunch boxes,
tin cans, bottles and other trash
alongside the highways.
STRENGTH
The selection of a depository for
your savings and investments should
be governed by the strength of the
institution.
This Association is backed not only
by a Reserve Fund of $650,000, but
by thirty years of experience
guided by safe and sane business
policies applied for the benefit of
all its members, who participate
equally in the earnings, distributed
semi-annually.
Operating under the supervision of
the State Banking Board, all mem
bers are protected by carefully se
lected first mortgage securities on
Omaha real estate and eastern
Nebraska farms.;
Savings and Investments totalling
$17,500,000, belonging to upwards
of 25,000 members, indicate the con
fidence of the community in this
Association.
eGONSERVATIVE
Savings & Lon association
J. A. Lyon, See'y
J. H. McMillan, Treat. ,
st h -PfTi
Will Try Motor Buses.
The street railway eompanyof
San Salvador, in Central America,
recently purchased 20 passenger auto
buses, which it is testing on ita
tracks with a view to replacing the
present mule-car service. It the
test is successful the company in
tends to purchase more buses and
use the old cars as trailers.
V
Buying Homes
The Aim and Purpose
of the Omaha Loan
and Building Associa
tion encourage thrift
by the saving of small
sums and provide
ways and means
whereby every family l
in Omaha may pro- 1
cure a home.
5
Benefits Mutual
2
It is a mutual and co- j
operative savings in-
stitution under the su-
pervision of the State
Banking Dept. The I
Association members
have associated them-
selves together for
their mutual benefit I
and financial advan
tage. i
s
s
All Share Alike
s
There are no pre-
ferred stockholders, f
All members share
alike in the profits.
N
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