Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-03-02
Co-operative Building.


There is nothing that has been of so much adj
vantage to poor men living in cities as Cooper
alive Building Associations. which has enabled
mechanics and laborers, clerks and statesmen,
whose means were small, to secure homes for
themselves and families, by laying aside stated
sums from their incomes. Nothing ofth kind,
in the way of combined effort, has ever: been
made in Knoxville though an individual effort
has been made by one of our capitalists, Col. G.
H. McGhee, who offers land on credit for term
of years, and advances one-half the cost neces-
sary to build house. securing himself by mort
gage as Cooperative Associations do.
They are more appreciated in Philadelphia,
however, than any other city in the United
States. An exchange says that SO popular are
these building associations in the Quaker City
that forty or fifty new ones are projected every
year.
/ individuals DESTROYS of forming one must
draw up constitution in accordance with the
law and submit it to the courts. If this eonsti-
tuition is favorably passed upon, they can pro-
coed at once to work. One provis0 stipulates
that no association shall issue more than 900
shares, and no member can purchase more than
80 shares. The design Of this is to keep, the as
ISOLATION out Of the hands of Spectators. The
tax on each share is one dollar per share, or
twelve dollars year. Each share entities the
holder to draw two hundred dollars from the
association for building purposes, on giving
mortgage. II, for example, . member has ten
shares, he can draw out two thousand dollars,
but no more. Z -
Associations are required to hold monthly
meetings, and to pay their taxes VIXEN due. If
an association has disposed of, say two thousand
shares, two thousand dollars will be paid into
the treasury at each meeting. After the pre-
limnary business has been transacted, this purse
is put up and sold to the highest bidder. There
are two methods of doing this, the old and the
new. In accordance with the former, the men,
bers bid what amount they are willing to leave
in the treasury of the whole sum. Ono bids
ten per cent, another fifteen per cent, and an
other twenty per cent, and SO on. If the purse
is struck of TO the 20 per cent. bidder, he is en-
titled provided he owns ten shares in the assoc
csation) to receive from the treasurer the two |.
thousand dollars, minus the twenty per cent |
He gives first or second mortgage on the build |
ing which he buys or builds Is security for the |
sixteen hundred dollars, and pays to the associ |
atiou six per cent. on the entire two thousand |
dollars, at the same time he keeps up the |
monthly dues on his ten shares. When the set |
cement is finally made, the amount of these |
lues paid in, together with his share of the rev.
'nues of the society derived from fines, good in
ETC., are added to his payments If |
he aggregate sum equals the amount of his in |
lebtedness, his mortgage is restored, and his &C.
cunts cancelled By the new mode of dispos-
ng of purses, the members offer to pay 50 much /
sr month in the sum loaned from the associa-
ien If the purse be two Thousand dollars, and
is struck off at Ave per cent, bid, the bidder
grces to pay FIVE per cent. every month of the
mount borrowed.
By means of such associations, poor men are
nabled to build homes on small incomes, and
Philadelphia and the surrounding country are
lotted all over with their homes.
We think it would be well for all in moderate
to study the plan of these assoc-
tions, with a view to establishing similar ones.