Lewisburg chronicle. [volume] (Lewisburg, Pa.) 1850-1859, 1857-06-26

! specimen Of all. | will therefore give a brief
statement of the plan and actual workings
of one which has now been in operation
long enough to test pretty satisfactorily
the advantages and Disadvantages Of the
system. 1t has worked well, and many
of its members will now, in the course of
few months, have clear titles to their
own homes, who without the aid Of some
such association wcu!d never, in all proba-
bility, have enjoyed that privilege.
! The number of shares in the Associa-
ton to which allude, was restricted at
first to six hundred, which were soon all
subscribed for by one hundred and forty
three members These all bound them
selves by written obligations to pay, pune
tually, one dollar per month for each share
Of stock, together with all Gues which they
should incur, aud monthly interest on
money borrowed Six hundred dollars
per month were thus paid into the treasu-
ry fr,m the very beginning, all Of which
was loaned out Immediately and in open
meeting to members, according to the fol-
loving regulations: Every stakeholder is
entitled to borrow from the Association
$500 for each share of stock, giving salts
f4r'ory security therefor; bur as money is
alwIys in demand, and all have equal
right to borrow, the money is awarded to
the one who bids tue highest premium.
The premiums thus received, together with
the monthly interest paid (always at six
per cent } g into the general funI, to be
loaned again to others in Ike manner
The borrower has the privilege of taking
any amount, from 5000 to $1,000, at the
same rate of premium, Gf he hold shares
enough to en,itle him to SO much, and if
there is not in the treasury as much as he
wants, he receives the balance out Of the
first money that comes in without bidding
second time He can nerer Je reqired
to pay back The moncy borroge', Of the
interest is promptly paid, } but may hold
it until the monthly in,talneuts, the ac-
cumulated interest, the premiums, fines,
&c, shall amount to 500 for each SHIRE,
when be receives back his bonds and mort
cages, aud the money becomes his own.
Those who have not borrowed, will receive
5000 per share in cash. The whole plan,
however, is based on the supposi,ion that
nearly all will want to borrow at some
- L~s~-o .h~ eha-as n,.."-a ana evno-;
ence has shown that this is always the case
The stockholders meet annually, and
elect nine Directors, to whom is committed
the whole charge Of the Association during
the year. Their business must be trans
acted in open meetings in the presence Of
auy stockholders who may choose to at
tend, aud the books must be open at all
reasonable hours to the inspection of mem.
bers.
The punctuai payment Of the monthly
dues, and interest on money borrowed, is
secured by fDe Of ten cents on each dol.
lar for every months delay. If any mem.
Der who has borrowed from the Associa-
ton neglects to pay his monthly install
ments and interest. for six moths, the
Directors may compel payment of priuci-
pal and interest, BY ordering proceedings
on the bond and mortgage according to
law.
Members wishing to withdraw from the
Association, within two years from the
were entitled to receive
the amount of dues paid in, less five per
cert. After two years, they were allowed
some interest also, increasing in amount
with the age of the stock. In case of the
death of any member, his heirs were al .
lowed to draw out the full value of the /
stock, with all the accumulated gains and
interest.
1t has been found in al. these Associa-
tons that the profits from compound iute-
rest and premiums are so great, that in
about ten years the shares become worth .
500, when distribution of the capital
takes place. TIE Association of which |
have been speaking, began operations on
the first Friday in July, 1913, and shares
then subscribed for will mature not later
than juno, 1853, and probably little
sooner.
But this article is already so long that
| will postpone any account Of the advan
tages of Building Associations for another
number. c. S. J.