corporations, but institutions for taking money deposits, and they have no real capital, as any member may withdraw his share of the assets at any time. The committee suggested that the word "accumulation" be used instead of capital, as it would more clearly show the public the character of these institutions.

While there have been no foreign building and loan associations doing business in this state for many years, there is a provision in the law permitting them so to do, if they meet certain requirements. It is proposed to place the same prohibition on foreign savings and loan associations now imposed upon savings banks, and absolutely prevent them from doing business of any character within this state,

For some time there has been considerable friction between the Banking Department and the local savings and loan associations concerning the word "losses" as applied to real estate. Every association must have a contingent fund, and it is contended that this contingent fund should be used for recoupment of losses. The Superintendent of Banks has been arbitrary in his position as to losses, and while no hardship has resulted from his rulings, it is possible that it might at times embarrass well-conducted associations with a large surplus.

ALLOW NEW SURPLUS USE,

The amendment proposed will permit an association taking property at a foreclosure sale to use part of the surplus in making good a loss. As the law now stands, all losses before actual sale of the property must be taken out of the current earnings.

The limit of the surplus and undivided earnings account is fixed by statute at fifteen per cent of the dues and earnings. Some of the smaller associations feel that they should be permitted to accumulate a larger surplus and protect themselves against possible depreciation, and so insure their stability. Keeping this purpose in view, the committee has recommended that any association that has a capital of less than $100,000 may accumulate a surplus not exceeding $15,000, thus permitting the smaller associations to have a larger proportionate surplus than may those with larger accumulations.

The report of the committee received the unanimous approval of the League.

New Jersey B. and L. Examiners Organize Club.

The building and loan association examiners of Eastern New Jersey held a dinner at Newark last month. A permanent organization was formed. It will be known as the Building and Loan Examiners' Club. The following officers were elected: President, James MacMaster; vice-president, Christie B. Snyder; secretary, James H. McNish; treasurer, John D. Pryor.

It was decided to hold a dinner every three months. These meetings will be for the purpose of discussing topics relating to the work of examining building and loan associations.

Pennsylvania League.

The quarterly meeting of the Building Association League of Pennsylvania was held in the hall of the Spring Garden Institute. Joseph H. Paist presided, and there was a large number of delegates present from different parts of the state.

Following certain recommendations by the executive committee as to the manner of handling the split mortgage question, practically that it would be better to have the total mortgage recorded as one instrument, the delegates advanced reasons pro and con, many believing that they should be entered as two mortgages. Owing to this difference of opinion from legal standpoints, the League thought best to refer this particular subject back to its committee for further consideration. As the excellent laws governing building associations are really League acts, President Paist said emphatically that the League ought to go on record strongly opposing any attempt to evade the laws by associations in the League or not in the League. The League tock this point up at once and unanimously passed a minute practically as follows:

"The building Association League of Pennsylvania in session this 27th day of December, places itself on record to report to the authorities of the state any reported violations of the Act of May 14, 1913, P. L. 205, or any other building association law coming to its notice."

The secretary was instructed to report the action of the League to the Attorney-General and also to the Banking Department. The League heartily approved of a suggestion of its executive committee that an invitation be forwarded to the Real Estate Board of Philadelphia to appoint a committee of five, interested in the land transfer system, to meet with and confer with the League committee on this growing important subject.

Delegates from up the state associations made addresses regarding the work of their association. President Paist reported that he had sent to the governor the recommendation of the League that Martin H. Stutzbach be appointed to any vacancy occurring in the Improved System of Land Transfers Commission.

Kansas League Elects New Secretary.

Mr. T. B. Brown has been elected secretary of the Kansas State League of Local Building and Loan Associations. Mr. Brown is also secretary of the Shawnee Association, of Topeka, Kan., and is chairman of the Publicity State League. It is the intention of the Kansas State League to furnish the AMERICAN BUILDING ASSOCIATION NEWS to the various members of the legislature in order that they may be thoroughly posted on the good work of building associations.

The next annual meeting takes place at Wichita, May 21 and 22, 1914.

Hamilton County League.

At a recent meeting of the trustees of the Hamilton County League of Building Associations the question of making returns under the newly enacted Federal Income Tax by building associations was considered, and the secretary was instructed to forward a blank affidavit, to be executed before a notary public by the officers of the associations doing a mutual business, attaching the same to a Government income tax return for corporations, and file it with the Collector of Internal Revenue in the Government building in Cincinnati.

The filing of this affidavit claiming exemption is deemed necessary because the present income tax law is a new enactment, taking the place of the old Federal Excise Tax law. Mutual Building and loan associations organized and operated exclusively for the mutual benefit of their members are exempt under both laws, and the exemption should be again claimed by the filing of the aforesaid affidavit. This should be done before March 1, 1914.

Louisiana Homestead League.

Friday and Saturday, April 24 and 25, have been selected as the dates for the twenty-third annual meeting of the League, to be held at New Iberia, La.

Each association is urged to be represented at this meeting by at least three delegates, and in line with another resolution adopted at the last League meeting, it is especially desirous that each association send its secretary as one of the delegates, the attendance of the secretaries being of utmost importance.

It is also expected and urged that one delegate from each association prepare a paper to be read at the next League meeting. Information as to railroad and hotel rates, program, etc., will be sent you later.

Please do not delay. Elect your delegates, include the secretary, and have one of them prepare a paper.

Milwaukee League.

Legislation affecting building and loan societies was discussed at a meeting of the Association of Secretaries of Building and Loan Associations of Milwaukee County at the Republican House. Those present were: Zeno M. Host, H. R. Graham, E. F. Phillips, W. B. Osborn, E. W. Sickes, C. D. Lisle, Vincenz J. Schoenecker, Jr., August Rebhun, P. J. Kambe, Jacob W. Kramer, M. A. Chybowski, B. A. L. Czerwinski, L. J. Tiefenthaler, Lorenz Wagner, Lawrence Conlan, Theodore Mueller, H. F. Droegkamp, Herman Lange, J. W. Wacker, F. W. Krueck, George H. Straub, H. W. Mitchell, L. M. Oberndorfer, W. J. Damm, L. W. Burmeister and W. H. Fischer.

Nebraska State Report.

By HON. E. ROYSE, Secretary.

The twenty-first annual report showing the condition of building and loan associations has just been issued my Hon. E. Royse, secretary of the State Banking Board.

This comprises the summaries compiled from the annual reports of the building and loan associations in the state for the years from 1892, the first year reports were received, to 1913, inclusive, showing the totals for all building and loan associations in the state for the years stated.

In 1892 the total assets were $2,902,557. The receipts were $1,024,600.

In 1913 the total assets were $32,746,726. The receipts were $21,966,732, an increase of over $30,000,000, which is a remarkable showing.

In presenting this report, Secretary Royse states:

"The condition of the building and loan associations of the state, as set forth in summary and detail in this report, will doubtless be gratifying to your honorable body, from the fact that it shows a continual growth of these institutions.

"While conditions as a whole in the state the past year, due to general causes not altogether peculiarly incident to the state itself, have shown more or less halting accumulations, the building and loan associations have nevertheless increased their assets nearly $4,000,000 during the year, and in that time they have done a business amounting to $22,000,000, at a cost of approximately $290,000.

"I am pleased to state that they seem to be carefully and conservatively managed and in safe and sound condition.

"One of the most crying needs in the conduct of these associations, in my opinion, is a uniform practicable system of bookkeeping among all the associations. This department has been advocating this for a number of years, and I think some progress along this line has been made.

"I am presenting this report to you, well satisfied with the showing made.'

Connecticut Report.

By HON. JAMES P. WOODRUFF, Building and Loan Commissioner.

The seventeenth annual report of the Commissioner on Building and Loan Associations is respectfully submitted to your Excellency, herewith.

There are now fifteen building and loan associations doing business in the state, the Windsor Locks Building and Loan Association having been organized on July 2 of this year and com

menced business on August 7. The total assets of these associations amount to $3,241,852.96, an increase of $283,875.09 for the nine months ending June 30, that date being now fixed as the time for making the annual returns to this department, instead of September 30 as formerly. The chief items of these assets are: Loans on real estate, $3,039,157.58; loans on shares, $106,355.42, and cash on hand and in bank, $69,703.67. The liabilities, of course, balance the assets, the principal liabilities being: Due installment shareholders, $2,766,156.34; due shareholders for earnings credited, $263,935.59; due shareholders for earnings not credited, $32,273.63; balance to be paid out on loans made, $54,225; borrowed money, $27,500; and guarantee fund and surplus, $16,459. Of the whole number of members in those associations, which reported the number, 1,172, or about 261⁄2 per cent, are borrowers. Only one association has any real estate under foreclosure, which is noteworthy when compared with the record of our savings banks. and like institutions. In fact, most of the associations have never had any foreclosures since their organization. The associations are apparently prosperous, and the only criticism which the Commissioner would make is that some of the larger associations are going outside their own immediate locality in order to place loans. Building and loan associations are essentially home companies, as well as home builders, and experience has shown that success depends on keeping that fact in view, and failure has overtaken those companies which have gone far afield. This practice of making outside loans is particularly true of one of the largest associations in the state, but as it is located in one of the smaller cities and there are two other associations in the same city, it is doubtless necessary to make such loans in order to keep its money invested.