1893 - State Library Information Center

Co-OPERATIVE BUILDING AND LOAN ASSOCIATIONS. 467DEFECTS OF BUILDING AND LOAN ASSOCIATIONS.*The primary defect, in my judgment, the one from whichalmost all the others spring, is a too rigid economy, an economythat very greatly interferes with the efficiency of the management.It begets a divided responsibility,' each endeavoring to shift thelabor on to his colleague, and the result is a great many losses.Building and loan associations are great institutions, capable ofdoing a great amount of good and are actually accomplishingwonders, all this notwithstanding their indifferent management. *Just think of how much they would accomplish if well managed!I.know of a great many associations with assets amounting toupwards of $200,000, with monthly receipts aggregating about$6,000—this to be promptly and Bafely invested—being managedat a total expense of $700 per year. This amount covers the salariesof the president, secretary and treasurer, the rent of theoffice and hall, the stationery, printing and postage—in a word,the entire expenditure for management.Men may, and do, engage to do work for almost nothing, butmy experience in nearly all such cases thafc have come under mynotice, is that they do not do it well, they do not give such businessanything like the thought and care that they give their ownor business that they are paid properly for attending to.The president of an association is supposed to have a knowledgeof its affairs and to be responsible for its well being, yet themajority of them do not receive any compensation, a few get $50or $100 per year. No man capable of being the bead of a moneyedinstitution, with assets of a quarter of a million dollars, can orwill give it the time and attention its various affairs demand' forauy such recompense. He may be faithful in his attendance atthe monthly meetings, but if so, that is about the extent of his,attention. This is all wrong.Now take the case of the secretary. This officer should bethegeneral manager of the association, should be directly responsiblefor the prompt and safe investing of the monthly receipts^should carefully examine every property offered before its refer-• John J. Burleigh, Secretary of the Economy Building and Loan Association, Oamden.