The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1867-03-29

A Plan for a Building Association.
The PIN for Building AssOcis ton given
below and clipped from the Cleveland Herald,
is one which we think might be adopted here
with advantage. There are strangers, Ia
borer. aud mechanics coming here every day
who want cheap and yet comfortable houses.
By means Of this Building Association alarge
number Of good dwelling houses might be
| constructed, which would furnish the labor
ing classes with uest and comfortable houses,
and so build up the material interests of our
city. Who will make q move in this plan
or suggest betterf
An Association is being formed in Cleve-
land for the purpose Of accumulating fund
by small and easy deposits, which may be
loaned to the members thereof on auple Sc
curity, whereby they may be enabled to pur-
chase for themselvs lots, and build thereon
dwelling houses or pay for houses and lots
already purchased. A meeting was held for
the purpose of advancing the interest of the
Association, and as many of our readers will
probably become interested in the movement
we give the following as the plan of the "For-
est City United Land, Loan and Building
Society"
The Association consists Of two thousand
shares. Each person who puts down his
name for share, pays one dollar month, and
If he takes more then one share, than he
pays in proportion. This makes 81, 600 paid
| in every month, all of which is to be loaned
out. Each share is entitled to borrow from
the Association 5000, and this sum of 5000
is called ia loan"-the term Ga loan" mean.
ing the precise sum Of $3.50.
At the monthly meeting this money is Of
fered on loan. There may be ten or dozen
who want to borrow it. All have equal
rights to it, but the question is settled by that
person taking it who bids the highest pre-
MUM for the preference.
No person can take more than one loan fol
each share he may hold in the Society. Thus
for instance, a mechanic has decided on buy
ing a certain house aud lot, and has no means
of paving for it-he has, however. five
shares in this Association-the price of bis
house and lot is, say $500 or 81, 900, his five
shares entitle him to borrow 81 900, which
is awarded to him at regular monthly meet
ing, With this 81, 900 he is enabled to buy
the property, and he gives the Society q
| mortgage for the amount, the interest Of
which mortgage he pays monthly with the
regular five dollars on his shares. Now the
ri 600 lent to him is never called for, for il
has been found in all these building societie:
that the funds and profits accumulate SO rap.
idly by means of the interest and compound
interest which is prePetually paid in from
premiums, dues and interest, that in few
wears there is sa much due him from the
Association as he borrowed from it, conse-
quently his house is paid for,every dollar Oft
Therefore, when the shares Of the society
| are found to be worth 5000, the borrower
has his mortgage surrendered to him and
the Association is dissolved. From the ex-
perience Of similar societies in the Eastern
States, it has been found that these societies
usuallyexpire in about seven years.
Thus a poor man can borrow a sum Of mon
ey large enough to buy or build him his own
house, where he may reside, and he contin'
ues making his monthly payments to the so
ciety instead of paying rent, and is thereby
paving for his own house.
If loan of $500 is awarded to membel
at premium say, five per cent. the five pei
cent I$lO) is deducted from the $500, ant
he receives in cash $780, but he pays legal
interest on the $500.
Every person on becoming member shsl
nav an entrance fee of ten cents, for each anc
every share which he may hold in the As
| socation.