Sunday dispatch. [volume] (New York [N.Y.]) 1845-1854, 1852-03-14

rented for the amount specified. Real estate q
auction b,inss more in either of those place
than lots will above Fiftieth street, New York
The whole article is fault-fuding, fallacious an,
ridiculous from its title to its dash.
The National Democrat mnst if it is desrou
of establishing prejudice adverse to the asso
cative theory advance something more sounC
than any adventitious doctrine it has yet brough
forward. Ridcule may frighten many out o
their Wits but it has ever failed to convince peo
pie that black was white or white black.
There is a sincerity about the Police Gae ztt
which commands our respect. And although W,
are not convinced by any inferences or conclu
sions which it has as yet drawa, yet the editor
of that paper treats the matter as if he were
anxious to arrive at fair conclusions. While h,
blinds you with his sophistry, he does not exuli
over the trick Of throwing dust into your eyes
AS we feel bound to give fair play to both sides
of the question, we insert the following
As the examination is an intricate We must proceed
carefully and in this view may be we'll state again
gramme of Building Association s, that payment OF
fee OF two dollars, and SO thereafter pc,
month for eight years. the delOator obtains share
and will be entitled at the end Of that time to 500
cash. for the $3.50 paid in IT, the otberhand he wish
es to build or buy at once and not use the Association
Savings Institution, he takes extra SHARE and on
2
house and lot that have hit Ills fancy He asks for this
loan at monthly meeng, and there competitors
loan at If he has no real competitor
those Of the members who do not wish buic and who
make themselves pretended competitors for it is their
that is loaned and they naturally wish to make
to which they look for dividends. So they pit their cum
ming AGAINST his wants or his nfatuationa of Pc
ter Funkism commences the premium is bid early
the cracking point and the pauses until the
monthly meeting shers some fresh pigeons for general
nuCkIQQ. mode aa INyap
money these two shares worth ultimately $500 apiece
take for the nominal loan Of that p say the
trusess so will take 5000 on share and payin
share, says of the lending members. will take
$500 share says the borrower which being double in
teres for the $780, considered enough and the auction
stops The money is not given to the borrower but he
points out the house and lot he wants which is worth just
it for $1,000 (vey poor security lenders by the
wayl and let him go in exactine however, during the
entire eight years the three dollars month each
scare and in the end giving him clear deed the pro
Pey teng hin th:t he has got it virtually for othng
try and see how large this nothing is
month. which makes at the end of the year S72 90
Interest at6 per cent. on $1,000 .......... 96 90
MMnhuai insurance. ..-..- ............. s 90
Agreements properly out Ct town probably
ooV; say--...''. .................. 10 90
REPAIRS 10 OO
Total. l.......................... $2C4 90
He could hire this aaine house of alandlord for
per cent which is7z or say............. 1900
Saving per year $40 90
Now it. instead Of paying this S29 year to the Asso-
caton he puts it out at interest in the usual wav he
ST. a. in lieu Of house and lot worth at the selling
estimate, and when the house only $500 leaving
balance OF S4 "a in favor of retaining his own money
and putting out bond mortgage or otherpise
on eecurty worth double the amount. But the cacus,
saving the expenses attending the transactions with the
association Of 81 as entrance fees the two shares
surveyors fees not less than So searching title So
aeeG ~ RmaTgSge mort So reeordng mortgage rs cents
o 1ook, 20 cents These exr toge her make mp
cent, for eight years 10 ~ CO. This added to
the saving Of S3O4 a. makes full aggregate of s37
point by point with figures figures cannot lie The
ing Assoca tons attempt oppose and reverse IL ia Nv
assuming that landlords get out tenants rate ofrent
property This, however is not only erroneous but in
sincere seven-eghts of the landed property in New
and repairs are paid and much Of it produces only our
or hye The average is six and for the ctnes Of
agents OF the Astor and orlard estates appeal
70 al ene that can be gathered the subject
real estate. 40
As another evidence of the fallacv of the rs
e these Associations capitalists refuse touch them
land it enough to get any number of shares nv
proxy but on the contrary, there are several Of them
u ~ win one ueea. fonus at the end of eight Js,
The Police Gazette declares that as an evidence
of the unsoundness of these association, " capt
talists refuse to touch them This is gratuit-
Gus. If the editer of the Gazette had taken the
trouble to enquire into the matter, he would have
found that Capitalists, are only too anxious
to avail themselves of the advantages offered and
to keep these very " capitalists :" out, laws are
framed under which they cannot purchase more
than tiUe shares. If at any time it is found that
they have, by chicanery gotten possession of more
than the prescribed number, they forfeit them
back to the association We can in five min
utes, place our hand upon gentleman who at
this time, has not less than seventy-three shares
in various builing associations. We know, also,
that he would not invest his money where he
was not likely to realize more than seven per
cent per annum.
The clap trap cry Of" usury which the Gazette
employs, is unworthy of its astute reputation
1t is miserable fling, bearing with it no
weight, but good deal of suspiscion; and instead
of tending to convince a sensible reader, dis
gusts him with the inductions offered to his con-
sideration.
The knowledge of mankind of which the Ga
zette so boastingly pirates, amounts to nothing
The law in this case, as in almost every other in
corpOrated body, Furnishes even to bitterness, the
delinquent offender. The editor of the Gazette
will find much food for reflection in the act of
April 10, 1850
We have italicized some sections of the law
which we think it would be well for obiectors to
look carefully over.
We are indebted to Mr.. MILLTKEN, gentleman
favorably known to the community as an advo-
cate of these associative movements, for the fol-
lowing lucid explanation of the theory upon
which they are constructed.
1t is somewhat surprising that such want Of
information is manifested, by those who assume
to make the discussion of commerce and finances
their profession, concerning the principle upon
which the operations Of the various building as
sociations amopg Us ere cor Quoted. Without
delaying to meet all the petty objections that
are raised, and are common TO all financial
schemes, permit me to remark that the only one
that can be of any peculiar Importance is con
tanned in the general affirmation that these asso-
Citations promise too much. They are denounced,
not because they may not be of vast benefit, but
because these benefits may be exaggerated My
object is simply to state as cor cisely as possible
what conceive to be their theory and to glance
at the benefits derivable from this theory, and
fully developed in their practical operations.
/ LVA POA PVo~ VI 6ASNeOA BViopAOuAby IL Pulhu-
ing our argument we will introduce an associa-
tion limited to one thousar shares, the ultimate
value of each share to he $500, the monthly pay
meut upon each unredeemed share to be SO 90,
and upon each iedeemed share 81 90. Thetotal
capital to be accumulated will be $500, 000 The
amount and rate of payment being given, there
remains only the dnlaton of the association to
be determined, and this depends entirely upoD
the profits made. All amounts paid into
the association go into the general fund, and
overy dollar hey Ond the monthly instalment oi
SO 90 is clear gain. Without any profit, or by
imply pouring the amount arising from dues
into this general fund, ss2SOeO will have been
accumulated in % years. Therefore, assuming
that all expenses during this time will amount tC
$28 900, the association will terminate in q
years, without canning any profits of any kind
This then must be the utmost limit, for the with
drawal of any number of shares will not afecl
the result, because each withdrawal proportion
ate J dminishes the ultimate capital. Now i
auy profits be earned, and all go into genera
fund finally to be equitahly distributed among
all the shares, and this profit be equal TO thai
usually derived from safe investments, We neet
only show that the expenses are smaller thsr
usually attend the management of the sam'
amount of capital, to prove that each share viii
necessarily receive larger amount of profit thar
usual The total amount Of expense is briefly
the salary of the secretary, rent, and stationery
An extra expense attends the organization
which is much more than met by the entrance
fee. In fact the profits arising from the invest
ment Of this fee in the association, will neaTl,
cover all expenses. 1t must be ct once apparen
that since all these expenses are subject to tl
control of members, they will never reach
larger amount Than is required for the transac
tion Of business. $500 or $500 per annum ma.
be considered the maximum expenditure
1t must then be admitaed that the expense q
management is smaller than that which usual
attends the investment of the same capital.
Now it is plain that these associations posses
at least equal facilities with any other institu
tions for the investment of funds upon good secr
riiy, such as bond and mortgage upon real estate
Therefore the profits must be as great ss al
usually earned by such Investment
The conclusion is therefore unavoidable tha
this is the most profitable means of investmer
for small sums, even assuming tnat not a sing
advantage peculiar to the Association is employ
ed but the low rate of exptnse. This is the mil
imum of profit, and the maximum alone is III