Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1867-11-21
BUILDING ASSOCIATIONS.


In compliance with the request of the citizens as
seub.ed no .uesuu Hall on the evening OF the 10Th
iust viii yAeeriuily eudcayor % explain, as far
as / understand them, the organizations known us
Dc Building Associations, and the mode Oi their
operations.
The ub.ct of these associations is not only topro-
vide savings Banks, IN tact, Tor those who are
willing and able 90 setapart portion Oi their earn
u-s but also Co enable them 60 become partners m
am active organization, whose capital Is furnished
Jy deposit ut these savings, and whose pr1uts are
fairly divided among all the members OF the part
uersuip. The scheme OF the Building ASSOCIATION
is as follows.
Ihe members determine for themselves what
shall be tle capital Ut the Association, ANA what Tue
number off shares into which lt shall De divided ana
their par value. An order ui incorporation is theu
obtained from the Secretary OF state, the proper
officers t0 conduct lis atalrs are elected ana u Is
ready Cor business
Without election, and without any test whatever,
any on. NAV subscribe for any number OF shares
Which Doe has the ability tu take, iu accordance with
th. terms prescribed los the association. Certlh-
Gates ur these shares given 20 the shareholder,
which are iu tle nature u, certificates OF indebted
ness ut che association % him. The means with
which tI. association pays this indebtedness or as
10 s termed rst.s It's shares, are che dHo"Hts Pc
-..l.rI. d trjt ID tts holder and bi. portion Of me
u-.t.. Of he association. For each share ht owns
usually h,ty cents per week. That Is al he
hea.slciation receives this small sum, from time
t1 tue and places 10 o. h> credit, until his weekly
iustlu.u- together vlJl the profits ui the dss'cla-
zion iu which us participates viii enable at 10 pay
biu the .u,l par value toe each and every share he
holds. NaeuIt Is thus able 90 redeem as stock or
shares. H. pay each shareholder dollar Tor dollar
iurh.s share. the association viii have accomplish
CD it- purpose, and 10 ti'. then bc dissolved.
IpeIltu, may make the operation ul the scheme
PLANE. .y tess Illustrations.
~urrU-. Ju- corporation organized, and 10 Is de
tsruIled that the uuubeg OF ,hascs shall be 1000,
and their par value $500 per share. Zach share
holder then uV paving so cent, per week viii have
paid 40 rae end 40. each year so. AT the end ui
ten years rha Association ought % ue able, from
the Iu-tiweBt, paid by the shareholder himself, %
redeem bis share ut 500 iu iuii. But the profits,
which lr. urupu.tl uJlIy divided among the share
holders, added On the weekly deposits, enable the
Association o. redeem lbs stock or shares iu about
ssrrH wears. So that the difference between am as
ISOLATION Ui this description and a simple bank Is
tll-: IU bans deposits Weld NO interest accumu-
.a-a Uu profits. and 10 viii require deposit of 80
cents week 1r ten wears o. reach the sum OF 500.
But by Oh uni. ut investment now under consider
alton, Hu. sill laveat the end ui about crsH Years,
as ar.-utut d.u.sItot the sum DO 80 cents week,
"a ike amount 20. $3.50. Ills share Ot Oh, profits OF
ths building ASSOCIATION wall account for the differ
elC.. IU. advantage Ot the association over the
bank Is plainly seen. BY paving 90 cents week
E. Ia. o. .l, credit iu che atsuciutisu the came
mount a .Le end ut about screen wears that he would
have. -u bis credit u bank at the end 90 TEN years.
COATS. be save, the Jasta.ments ct 30 cents per
week Cor OBJ. space u three years and has saved just
as much money iu the one case as iu the other.
One I'd. Che great purposes ut the association is 20
enable men ot limited means and who are ,ubscri-
Den, OBJ shares. tH borrow money on approved secu-
urE and Iry r aHrt with their share OF the assets
Ut tEu ass" cation
There a-. two plans for llaain- the funds OF the
association. which It there bee 1000 shares will a
uagrtt. $500 per week both OF which viii De best
Explained by Illustrations. The first Is dsuUmiua-
ed che ..IH's interest plan, or whore simple inter
ESQ l..u. r- charged aud Is as follow S.
Sg.Hu-. % shareholder has Two shares $500. and
Dee wants tu borrow that sum ou property su.lci mo
OBJ sscUre Ir The f.| sum of 500 Is advanced and
deed .r tu-t for the payment of 10 nc simple inter-
ESQ is -t..u Iae shareholder continues % pay his
stated. H. Is s-I.-ut and when the tssOCIau ton
d, able from It's net assets OBJ redeem his two shares
$500. OBJ. sIm to which he Nii. be entitled will be-
equal OBJ OH. debt covered bv the deed of trust and
o. course DO. a,erwili Doe Cancelled or released, and
be- ui then have bad the benefit OF loan Of $500
and har. almost iupsrc.paJ.y paid oh.
The second mode of IUIuiUg Is known as the pre-
HI.. plan. 10 is as follows: Instead OF advancing
che u amount 90 r1e pag value ui the share or re-
te.w,r- ON. share dollar for dollar as above, the
funds . OBJ. l,suca tluu are offered 90 shareholders
.Hr Oh. ...-.. amount for which any one may be
willing O.. have bis share redeemed which will be
..uir.l. ut. us We shall see, tD bidding premium
Tor t1. gs. u. the money. For instance: take as
before OBJ. la.l.ra. $50 shares $500. The hold
s~ may uH them tnr redemption say for the sum OF
zion, deed ut trust IS -i..u tU secure the payment
of on. par value $500. The indebtedness viii be
discharged as before, whenever the iust8lwgu,s
(which u.I stan bs continued Oh De paid and the
profits which go Coz ta. credit of the shareholder
shall. .Gua. OH. par value uI the Two certificates of
stock ItulI be readily perceived iu the last case,
however. -lIr on. borrower, 0g Doe who has his
shares red .au.d Don advance, uI.I actually pay a
premium OF tr.'T dollars for the redemption o,
li. stock.
Ha.i.uust always D. borne in mind that uheth-
e- Oh. borrower, OFT Doc who has shares redeemed,
pay s.mr.. mt.r,,. premium. as De is member
u. OBJ. .-aaHn, ue participates as such, in the
interest .r premium which Doe h.msal. has paid. and
thus invariably get, portion oft back.
Il. r... difference between these two plans Is
chat ir .u. east. Ja. profits u. che association are
larger .l.H bob the other; and hence tbe >hlrrhUld-
er- n.. have ,h.i- share, redeemed In full in the
uu. iustlre. earlier than in d.. other.
On. Ht OBJ. features Ut this Association is. that
member u.. borrow certain proportion usually
four b.. what De- has actually paid in on the
s.er.l'F..r hyFutIecatiuu simply Of his subscrip-
Provision is also made for the sale. transfer or
Witad.aHa. of shares or iH>tIimeuts paid In by a
member wishing Oh draw out; and also Tor the
payment and release ut deeds of trust should the
borrower prefer Oh return DBL, loan before the wind
ing up ut tls association; and Doe wishes no Che
same time O.. li-erutiuu. his wcubs r-hip. h. wiU
be- entitled O. am offset OF credit uu his debt of the
amount b. has actually paid ou bis shares.
Nfrn-, and women may hold shares through
guardians .- male Ti rts.
Ihar. r.ra.u.i iu Obi, paper fr0meuteriug into
d.t1II, OF r.. sch.u. uf these associations, these
win Doe contained in the plan which viii be sub
witt.t Oh Toe m-et.ugou Friday evening next My
object la. been to give only q general. idea of the
character u. tl.-. organizations. To have sue
.i % u doing tLis, I have accomplished an that
desired. Respectfully submitted.
WM. II. TRATERS
The BAN still I'm Motion.