not, such association could not secure authority to transact business in this State. And finally, penalties were provided for the violation of the new provisions and a legalizing clause was attached to prevent the impairment of any contract effected by the act.342

The Twenty-ninth General Assembly in 1902 provided for the regulation of unincorporated building and loan associations by extending the law pertaining to incorporated associations to cover those which were unincorporated, in so far as it could be made applicable. Such associations were required to submit their plans of business to the Executive Council for approval and to deposit securities of a certain prescribed class, in the amount of $50,000, with the Auditor of State. Such securities were to be held in trust for the purpose of securing the fulfilling and carrying out of all contracts made by such associations. No unincorporated association was to be permitted to operate unless the Executive Council approved its plan of business. The officers were required to give bonds subject to the approval of the State Auditor, who was also empowered to require detailed reports and financial statements similar to those required of incorporated companies and to cause examinations to be made as often as four times a year. Severe penalties were prescribed for violation of the law and for the misuse of the funds of an association by an officer or agent. Violation of the law was also cause for the revocation of the certificate of authority to transact business and for the appointment of a receiver to close up the affairs of the association.343

In 1911 the general incorporation law was so amended as to limit the incorporation fee for building and loan associations to a maximum of twenty-five dollars and to exempt such associations from the payment of renewal fees.344

THE TAXATION OF BUILDING AND LOAN ASSOCIATIONS

No provision was made for taxing building and loan associations until in 1876, when the following method was prescribed:

That the shares of stock of mutual loan and building associations, shall be assessed at their cash value but that only the unredeemed shares of such stock shall be taxed and such unredeemed shares shall be listed to the individual owners thereof.345

The law of 1896 which defined such associations and prescribed rules and regulations for them provided that the shares of stock of building and loan associations should be classified as moneys and credits for the purposes of taxation.346 New provisions for the taxation of these associations appear in the Code of 1897. The shares of stock are to be assessed to the individual holders at their place of residence, but the reserve and other funds of such an association are subject to taxation at its principal place of business, and are to be assessed against it as other personal property and paid by the association. Detailed regulations are provided to insure the listing of such property for assessment.347

The section of the Code of 1897 above referred to was repealed in 1913 and a substitute section enacted. The substitute provides that the real estate owned by the association shall be taxed in the same manner as the reserve fund and some change is made in the manner of listing the property, but the method of taxation remains unchanged.348

Building and loan associations have existed in the State for about fifty years. The first legislation relating to them, passed in 1872, remained practically unchanged until 1896 when a more comprehensive law was placed upon the statute books. This law came as a result of the increasing number of associations which were being organized about that time.

An examination of the Auditor's reports (1887-1914) reveals the fact that there were more building and loan associations organized and doing business within the State and that they were doing more business during the first year of the operation of the law of 1896 than for any subsequent year. There were at that time one hundred and seventeen associations with assets of more than twelve million dollars, and the Auditor took occasion to state that such associations were exerting a large influence on the finances of the State and in his opinion were very desirable institutions. Almost immediately, however, the number of associations decreased. The Auditor reported in 1901 that building and loan associations had not prospered in the same measure as the other moneyed institutions of the State-due to the lower rates of interest and the smaller demand for money. A few years later he reported that these associations would all quit the field.349 This type of institution seems to have regained some favor in very recent years, however, and the report for 1914 shows that the number of concerns was fifty, with assets of above seven millions of dollars and receipts of more than four millions of dollars.350 Such associations have undoubtedly served a valuable purpose and are still filling a need in helping to finance the building of homes.

X

TRADE AND COMMERCE

As used in this connection the expression "trade and commerce❞ is very inclusive: it comprehends traffic by the purchase, sale, or exchange of commodities, the transportation of persons or property, and navigation. The regulation of trade and commerce is carried on through both national and State agencies. Thus the Federal Constitution gives Congress the power to regulate commerce with foreign nations and among the several States; while the States have control over intrastate or domestic commerce.

Legislation pertaining to the regulation of navigation, transportation, corporations, insurance, and banking, having been treated in earlier chapters of this book, need not be discussed in this connection. In the present chapter only those laws will be considered which aim to safeguard the interests of the consumer and the creditor, and those which aim to promote and safeguard business.

LAWS TO PROTECT CONSUMERS

The statute books of Iowa contain many laws enacted for the purpose of affording protection to the consumer of goods. Among these are to be found laws relating to the regulation of weights and measures, pure food laws, misbranding laws, anti-adulteration laws, and inspection laws.

The Regulation of Weights and Measures:- The first law pertaining to weights and measures was enacted by the Legislative Assembly of the Territory of Iowa in 1839. It was entitled "An Act regulating weights and measures",351

and under its provisions the several boards of county commissioners of the counties in the Territory were required to procure for their respective counties a set of standard weights and measures, to be kept by the clerk of the county court, for the purpose of trying and sealing the weights and measures used in the counties. Persons buying or selling commodities by measure or weight could have their measures compared with the county standards and have them sealed; and persons buying or selling commodities by measures or weights not corresponding to the county standards were liable to a fine of twenty dollars for each offense. The standards to be procured were to consist of the inch, the foot, and the yard for linear measure, the half-bushel for dry measure, the gallon for liquid measure, and a set of avoirdupois weights.

A more comprehensive and detailed law was passed on this subject in 1843. More standards were to be provided, and the people of each county were required to elect annually at the general election an inspector of weights and measures. The inspector so elected was to give bond for the faithful performance of his duties. He was provided with a seal and authorized to inspect and compare the weights and measures in use in the county with the county standards, and to brand or seal such weights and measures as conformed to the legal standard. Every person using unlawful weights or measures became liable, upon conviction, for treble damages and the costs of suit. The law specifically stated that all contracts made thereafter in the Territory for work to be done or for the sale of any commodity should be made according to the standards provided by the act; but parties were permitted to adopt a different standard of weight and measure by mutual agreement. The legal weights per bushel of grains usually sold by the bushel - wheat, rye, corn, barley, and oats were fixed, and the act of 1839 was repealed.352