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

III OHA hAtA - anu 1nb apparently tAhSKtI1bt
promises ED out Of immense increaee to shar
hoidsrs, by investing small north y sums
from two to three dollars per share 10 be ult
Ens taly valued " from $500 to $500. al cale
forth much discussion from the daily and w(el
ly press. A superficial ew of the workings
these socis ties may lead tho investigator TO cor
demn tho theory a f Associate as exemphiedi
these combinations. How is il possible he asks
unless you r+sorc to the widest speoolstiop, t
realize in the short ace of seven or eight years
from an Investment payable ia monthly in tai
ments of three dollars or 20 drliars, asa ountin
in all to $252 or $2Ss, $500 or $sOO2 As "
have said, at the frst glaccs the subject look
prepcsterous for if the $2SS were permsnsAill
Invested for eight years il ill be but slightly in
creasl self, whereas the Accommodating Fun
Societies, for every dollar invested, promises Il
make it worth more than three dollars at he ex
pratt of the given tine. The objections an,
fears very gen, rally expressed are founded upol
iallao GUS conclusions drawn from trfoneous prin
cipts, and in the ample scope which we have al
lowed Ourselves in this article we shall tndesve
TO lay the theory of Association so plain be
fore the reader that he cannot resist the convic
ito of his own mind, and if be gathers / fer
ences contrary to the prom sed bent fciel efsc
of th,se societies, he mu' It be influenced by be-
than the explanation now placed before him
We do no however, promise to cover the entir,
subject matter under cons deration An assoc
ative effort which will probably enlist be orr
many years the great msjority of the laborinG
classes, canros be lightly nor trivially passsC
over in one article
At this time, the history of the origin o
those societies, and the good they have already
dCne, may be acceptable.
The idea Of assoc alton for the purchase Of re a
estate and erection of comfortable houses for he
laborlr g classes, had its origin among cool
calculating race of peoplsa people not easi y
led astrsy by dazzling promises, rich rewards, cr
uncertain speculasions. The Scotch were the
first to turn their attention to the subject Some
whore about the year 1915, in an obscure manu-
featuring town in Scotland, certain lAborers,
who had fer many years been paying rent for in
Sufficient shelter from the elements, came toge-
gether and found Oh compariE G notes that they
had repaid double the value of the property
which they occupied to the lord Of the soil, and
although they had done this good service to him
for many years, they were not one cent the rich
er in conssqueace-sh property which, as ten
an 5, they occupied, although paid for twice over,
was not heirs, and if they were to live under the
same relations, an equsl Dumber Of future years,
they would have to pay f0aa times its value ard
remain landless continue tenants. The idea
ook hold of heir minds, and they forthwith re-
solved to elaborate a system thro' which, by pay
ing ths same rent, they might ultimately hold the
properly, not as their landlords, but as their
own. An association was formed, weekly dues
we're paid, and as fast as the money was received
into the treasury, il was turned over and over,
aud made use of to such good advantage, thai
in au incrsdibly short time the association per
formed all it promised to accomplish, and every
member was householder Ia his own undis put
ed right.
The success of this association defective as it
was in Ioany particulars, induced other laborers
to combine, and soon society after society was
formed in Scotland, all of which happily termi-
minated. The people of England, hearing of
this new class of combination, enlisted in the
scheme, improved its workings and to such favor
thousand five hundred building associations were
organized in Great Britain, and were by act of
Parliament, bearing date, we believe, February,
1880, duly and legally recognized. Many of the
English societies have satisfactorily wound up
their business, and others are rapidly approach
ing the desired end.
Toward the close of the year 1916, an attompt
was made in this city to organize sn accumu-
lating fund association, on the plan Of the Eng
lish societies. 1t was, however, a failure.
The failure was owing to the Ignorance of the
workers and the distrust of the people But few
were found who would risk their savings -
The second attempt was more successful. In
1913, certain Englishmen, thoroughly conversant
with the workings of these accumulating socie-
ties took the matter in hand, and soon the First
American Building and Accommodating Fund AS
sociation was successfully established Mr.. John
Bruce, a mechanic honorably known in our city
was elected president, and Mr. Solomon Jessurun,
secretary. The shares were put up at $500, and
the monthly dues placed at $3.50, 1t should be
recollected that this was the second attempt
the first society being failure-and shareholders
thus far have paid in about $l20, yet so prosper
GUS is it that Mr.. Jessurun stands prepared to
puIOuuoO oAuAOo 0o ohO pAASO u p-s@O hO OhAAN
annual report states each share in the Association
to be worth $275 81. If, after this, any one
cavls at building associations, it is because they
are more anxious for disputatiOp than for testing
the matter by unprejudiced investigation. The
crude societies of Scotland and England have
worked to a charm, and if we are to believe
parliamentary reports not one of the thousands
which have wound up their business in the Brit
ish Islands have failed to fulfil their promises
1t has been objected that there is no adequate
security given by officers for the proper perform
aoces Of their duties. A peTusal of the Act Of
the Legislature of this State, passed April 10,
1850 will set at rest all fear Shich may be enter
tanned on that score
With ref renee to mortgages, it has been said
that societies mortgage TO the full value, and
that il foreclosure were necessary and forced
sale had, much OF the property bonded would not
bring more than One-haf the face of the mort
gage. If they bring one-half, the society is Sc
cured The process by which this is isaccomplsh-
cd is aimple Notwithstanding the amount Of
money the person against whom the mortgs ge is
held, notwithstanding the fact of his giving a
probable premium of $4OO, the value of the pro.
perty is held to full satisfaction Of the bond, as
may be seen by reading sections l, 2, of the
Act These objections being thus summarlly
disposed of, before we proceed further in consid
Grafton of the objections offered, we may be per
mittad to introduce an abstract from the first se-
mi-annual report Of the ''Fourth American Build
log Association" made November 10, 1851 -
The abstract here inserted is entitled the g Pro.
fl ard Loss Aocoant":
Dr. By Expenses 49, ........ S45 u
Balance being nett gain ..SfO6H 81
Which divided mopg 0l6 shares is $50 9
Add dues paid months .......... SIS co