The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-08-30
.QheGmtelliqetreer:
Co.Operarive binding Societies.

!
quency with which new associations oi
II similar character spring into exist
ence throughout the State, invests with
interest any information regarding
their workings. a very interesting ar.
ticle in the New York Times descri bes
the system generally adopted, and
gives practical examplitication of lis
working. The origin and history oi
the movement are thus given:
The first building society WAS found.
ed by Earl SeIkirk, at KITkcudDright,
scotland, in 1915. and others sprung up
HfieI 1t, and tiUurished in tine same
thrifty part OF The Island, under the
title OF Hle1SdgieS. From Scotland the
emigration OF this idea was easy and
natural to Manchester and 10 Liver.
pool, where it took effect among
the numerous trades unions, and
in 1880 the movement began
which the acts of Parliament
now in force were passed, legahzlng
and regulating the new Institutions,
and couierring upon them mover aud,
(ior English law remarkable prIvI-
leges. Any number OF persons were
authorized TO lOrm a building society.
with shares not exceeding ESQ and
upon which shares no profits should be
allowed until fully paid up-Io make
advances 10 individual members ON
mortgage deeds, To receive any bonu-
ses for The preference in awarding such
advances, without liability TO the
penalty of usury, and 10 convey real
estate 10 member by simple release
on the mortgage deed, without the COM
plicHled and costly proceedings which
bad practically restricted cUnveyances
OF land 10 large parcels or TO persons of
conSidera bic means. Transfers of
shares aud other documents were eX
empt.d from stamp duties. Their
funds were forbidden to be invested in
savings banks or government stocks,
and the articles and by-lHws were re-
Quired TO be certified by Government
registrar, rs conformable to law, and
copies filed in his office.
The above abstract embraces the i'm
portant features OF the English law on
this subject, unless, OF which we are not
Informed, some provision has lately
been made TO remedy a striking defect
in the mode OF conVeyancing, whereby
there appears to be no sufficient public
evidence secured of the transfer OF
property from societies TO members, or
of the Seuuineness of the releases exc
cuIed from time to time by the chang
ing officers OF the organizations. The
condition of our own laws, where any
statutes specially affecting building So
Cieties exist, should be well considered
by those interested with reference to
this point.
The various plans upon which these
societies have been organized may be
reduced to two, presenting strong
general contrast, very important to be
carefully considered by those who pro-
pose 10 Interest themselves in such en-
terprises. In England, where build
ing societies are numbered by thou
sands, and by hundreds in single tow us, f,
md have already created large, and, J.,
until the passage of the new Reform
Bill, politically important, body
Of Independent small landed pro-
prietors-Ihe so-Called terminating
plan, which received first de-
Veiopment, has since been almost
universally discarded in favor OF per-
mHnent organizations; while here, If we
may judge from present appearances,
the general tendency is to tread in the
primitive and disused path ofIhe trans
atlantic pioneers. or the hall dozen
building societies started this summer
in New York aud Brooklyn, five are on
the terminating md only one on the
permanent principle. IL is perhaps inn
possible absolutely to decide IN nd-
vance OF full experiment which method
is best adapted 10 the conditions exist
ing in this country. Each is commend-
ed 10 those who adopt it by peculiar
considerations of advantage, which we
will proceed 10 compare. .fr-
The plan adopted by the associations
in this city and neighborhocd Is, we
believe, the terminating system eXclu-
sively. The interest paid here is six
per cent per anuum, instead OF ten per
cent, as in New York, and there are
other differences of detail, but the gen
eral features are the same in both
States. How the system works under
the New York plan ia thus shown:
The terminating societies fix the
vRlLe of their shares Ht certain figure
suppose il TO be S20O0-which all the
mem bers are pledged 10 realize to every
Individual before the concern is closed.
That done, the function OF the institu-
ton is ex hau,ted, and II expires, nat
uTally and inevitably, like a burnt-out
candle. Each member pays n small
iniIiaIory lee, say fifty cents, and II
weekly instalment OF say one dollar on
each share held by him, from the begin
ming to the end of lhe Institutions; The
number of shares 10 the individual be-
ing, OF course, restricted closely. A GER
tain number of members is requisite for
successful operatious-we will suppose
there are five hundred. The income OF
| the Society will then be $500 per week,
and in four weeks it will have accumu-
lated enough 10 pay off one full share
of $1,000. What shall be done with this
moucy? Of the hve hundred mem
beTs, guile Il number are probably
ready aud impatient TO build or pur-
chase house, while others are waiting
and looking out for eligible opportuni-
ties, aud third class are merely salt
ing down their shares for profit or for
uses as yet but indefinitely forecast
This natural state OF things has HppH-
rently Induced our projectors to choose
The plan oil selling the share at auction
10 the highest bidder of premium.
rather than that of awarding II by lot.
II awarded by lot, there is an even
chance, perhaps, that it will fall to one
who does not at present want it, and
who will Immediately sell his privil-
eEe for the most he can get; so that
large premiums are likely to be paid
at any rate, and it is certainly for the
equal benefit OF the whole that they
should go into the common fund. On
the other hand, there is the obvious evil
of rash and excited bidding, which, al
though it runs up great premiums for
the treasury, and directly seems to De
leading to large profits for the nom
borrowing members, (whO hope to get
their shares by an earlier winding up,
for an aggregate payment of perhaps
half their amOunb, yet leads also di-
rectly TO loss, through the troubles and
failures of the ipJudicious borrower,
and seems on the whole to be one of the
most pernioious elements that could
we'll be introduced intoa business OF
this kind. The first appropriation by
the "Second Union Cooperative Build
ing Society,"" OF which John W. Farmer
is President, was sold TWO or three
weeks since, and illustrated the subject,
five are not misinformed, rather Wv