The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-03-17
AFFAIRS IN THE CITY.
Building Accommodating Fund Associations.
To THE EpfToR OF THE HERALD.

Building Accommodating Fund Associations.
To THE EDITOR OF THE HERALD:
AS an experienced editor, you are no doubt aware
that every new discovery, no matter how beneficial
it has thereafter proved to mankind, met with
violent opposition at the start.
Persons who cannot, and persons whose interest
blinds them 50 that they viii not see any merit
in a new discovery, are not content with dis
believing but they must try to write it down; and
as they cannot or do not desire to understand the
subject they have recourse to abuse and vitupera-
ton, because argument will not answer their pur-
pose. l am led to the above reflection from having
lately seen several attacks upon building assoca-
tons, in various papers, made by persons, per-
haps, from interested motives, at any rate by per-
sons who have tho candor to acknowledge that they
cannot understand, being thick skulled, by what
hocuc- pocus" operation these societies make so
much money, and how they really benefit their
members.
If these gentlemen are really DESTROYS of having
little more light, am willing to mpart it to them,
and if they will take pencil in hand, and follow me
in the here submitted calculation, they will dis
cover the "hocus pocus" we employ.
will here premise that the table which here
submit is of the Second and Third Mechanics Build
ing Association, of which am Secretary, and the
plan Of which originated with me. The members
pay So monthly on each share, and the ultimate
value of share is $500. They differ from all other
societies in this respect, that, while others sell
shares at discount and charge interest on the full
amount Of the share those societies charge interest
only at six per cent per annum the actual amount
advanced on a share. The only objection which was
ever urged against them was, that they were far
too liberal to succeed, and that they will last too
ong.
The table submitted will concusively show that
LIBERAL they undoubtedly are, they will terminate
in seven years and seven months from the COM
mencement, when each share will have attained the
ultimate value Of $500.
But am satisfied that they will run out in seven
years, for in my calculation, have put down the
nual fines and transfer fees at $780, which is not
also discarded the payments made by members in
advance-often one year-which allows the assoca
ton to redeem large number of shares when they
will sell lowest. ! can afford to be generous, and
| give the opponents the advantage. l have put
down the annual expenses at $500, which is the full
amount, although much has been said about large
salaries, Sc, SC. l have commenced with 1000
! shares, and by redeeming the first month at $14O
and increasing it So monthly, until the expiration
| of the sixth year, when commenced ut $500, and
increased $40 monthly, until at the end of seven
years. reach $40, when | take it for granted!
| that redemption will cease, and the unredeemed
share holders will hold on until they get $500 for
| each share
In order that any man who is acquainted with the
common branches of arithmetic can follow me in my
calculation, will here show the manner of pro-
| ceeding-
Entrance fee Of 1000 shares at so cents is $500 90
One months dues. observation-disclosures. 1000 90
Total receipts. first month ............S $4,000 90
Redeemed at 40, S2500-23SO Q7-sharcs, leaving a
balance of 1920 to be carried to next months account
| Second month-balance on hand ........... 100 90
One months dues 1000 shares, S2........ 1000 90
| One months interest on 81 $50 loaned out last
month ............... Observation-Disclosures. II 70
Total receipts second month ............. $2l3l 70
Redeemed at 142, $2131 732130 as shares, leaving
balance of 81 IS to be carried to months account
| Third month-balance hand. .............. 70
Interest 50 3sOx 50 130-$451O, month. % "a
One months dues. 1000 shares SO. 1000 90