The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1871-01-26

!. -. zIlIIll-ElzzlI
New Building Loan AssociatIOn.-on
Monday the papers Of the ineorpora-
ton OF a new Building Loan AssOeiG-
tion, In TiGin, were received by J. H.
Ridgely, Esq, from the Secretary OF
State. The name Of the iacorpOra-
ton is the Mechanics Building Loan
Association Of Tifin," with a capital
stock Of $4,000 in shares Of 500.
This is the third Association OF this
kind that we lave in Tiffn, and we
are satisfied that it will meet with
+ success. It, Of course, in no way, con-
flicts with the sother Associations,
I having been started that persons who
are without stock in them, and can
not afford to buy that stock at its val
ue, can invest their small surplus
means each month in profitable
manner.
For the benefit Of those that have
not fully looked into this matter we
publish from the books Of the old As
sociations the following
EXPLANATION.
The general manner Of the orga nj
zatiOn can be learned by reference to
the Law on this subject passed by the
Legislature. The Capital Stock may
be any amount stipulated in the ar
Hsr.Is.r ~ Aaarafu FTHnfa = Ifr~GAlsr
into shares Of 500 each The mem
bers Of the Association are those who
subscribe to the Stock. Upon these
shares there are monthly payments Of
81. This money is put up at auction
each month, and sold TO the highest
bidder, the premiums arising there
from going into the common fund and
being in turn sold in the same man
uer. Members are allowed to borrow
only 20 the extent of their stock. As
sOciatiOns conducted as they should be
will terminate in seven years-that
is, the earnings, with the monthly dues
on Share, will viii equal the par value
Of the Shares.
We will suppose that a mechanic
lives in a house worth 81 900, for /
which he is paying an annual rent Of
500. He takes seven Shares in a I
Building Association, for $500 each. /
and bOrrows tc the whole amount, I
giving, say p per cent. premium, or .
SO dollars premium on each Share of I
500, and receives 3, ,0j0-but pays /
interest on the full amount of seven |
Shares of 500 each.
We will now see how stands the ac-
count, making our calculation for the 1
termination of the Association in sew 1
en- years
Monthly payments on seven Shares 500
Yearly payments on seven Shares. s. % /
These payments in 7lyears amount to 5ss 90 /
Interest on Sl40J for years-..--..-.....- e85 90
Total payment. "a 90
Had he continued to rent, he would .
have paid 500, and still have
been without a house. Had he bor-
rOwed 81, 900 in the ordinary way for
7 years, he would have paid for his
house as follows
Principal. l.............. ....:. :...... 900 90 /
Interest at per $50 90
Leaving a balance in favor of the
Association of S216, with the advan-
tage of being able to make the pay
mentS in small sums. In this estimate
we have left out all calculations of
interest on both sides.
As a savings institution or for the
investment of capital, Building As
present many advantages
Let the money lender invest in Shares
Of $500 each, and we will see what
would be the result:
Seven years monthly payment of
81 per Share-S420.
If the Association is well conducted
it will terminate in that time, as be-
fore stated; and profits of the prem
iums, interest, &c, will receive his
rather his principal of
q, 900. Invest the same amount, ,S420,
and the simple interest for years will
be but Sl05, so. 1t would take a good
deal of compounding to get the profits
up to $3.50, the difference between S420
paid, and the 81, 900 received.
The above gives a fair exhibit of the
of our Associations as far
Is they have gone.
The reports of the old Associations
nave not yet been made this year,
1ut we have some estimates of what
he value Of the stock is at present.
The Tifin Savings and Building Asso-
,iation has been moving three years.
IN that time on each individual share
If stock there has been paid 81 90 per
month, or S35 all toId-each share is
low worth between $40 and $50. The
Seneca Building Association of Tiffin
has been in existence one year and on
ZACH share there has been paid SIP
i per month, and such share is now
worth between so and S24-and this
With the heavy expenditures necessa-
y in the organization AMI for the
printing OF the Association, which
viii not have to be done hereafter.
We hope those wanting stock will
axe the matter into consideration and
subscribe. 1t is a paying investment.
For Stock call on J. H. Ridgely,
ESQ, at Keen & Ridgely's Office.