The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1873-06-13
THE EMPORIA MUTUAL LOAN
ASSOCIATION
How !. i. WORKING. ana oman. to WOOL.

. How 1t is Working, and Ought to work
The first annual report of this insti-
tuition is published in to-day's NEWS.
1t shows that it has paid of one hun
] dred and nincty-two of its one thou
shares, leaving eight hundred and
1T cancelled. If the prem
80 = could be kept at
~ g.. rs-, averaged
-. - - :, a~. the
during the first ten months sic
association existed, it would be a..
to pay off all the remaining shares in
four more years. But at the rates now
being offered for loans, the associa-
tion-s will exist seven or eight years
from the time of its birth. We may
state the matter in this form: If the
shares are loaned at an average of $40
the association will exist less than five
years; at 800 it will exist seven years;
at 500 it will exist eight years; at
SIPS, it will exist nine and one-half
years. They are now loaning at an
average of 500, and it is very evident
to those who attend the meetings, that
unless the usual plan of taking its own
stock as security is soon adopted, the
association will run for at least eight
wears. As this is three years more eX-
istenee than was originally calculated,
and As it is to the interest OF each and
every member 70 have the Association
nav off all its shares and dissolve IN
the quickest time that it possibly can,
all should understand the really SIM
pie plan upon which the Association
works. and be able to vote understand
ingar ON certain amendments which
propose TO perfect the plan and enable
the Association to get through in five
years.
The Association issues ! 900 hares
of stock, and contracts to pay 1925 on
each share, rs soon as it can, less any
discounts which members may offer for
the privilege of getting their shares
paid first. To get funds it calls tor
a weekly installment of % cents per
share, charges Is cents interest per
week on every share Sloaned," and
certain fines, transfer fees, &c. To eX-
pedite the work of paying off the
shares, the money, as fast as it comes
in each week, is put up for loan, in
separate shares each loan being award
ed to the member who offers to take |
the least amount of money as full pay
ment of q share, and give adequate
security to keep paying the weekly
installmcnts and interest on said share
as long as the Association exists. The
weekly installment (2s cents and in
tercst (l5 cents are the same, no mat
ter ut what figure the share is thus
loaned Il. e., paid on. One man Of
ers to take full price, 1925, another
1920, another $40, another 500, an
other $50, another $50, another SIS,
another $50, and so OH. The difference
between any of these bids and the full
price of SI25, is called the "premlum,"
and constitutes the main profit of the
Association; because every cent less
than S125 which a member offers to
take for payment of share, is so much
saved TO the Association. Each can
demand 1925 per share and got it,
too, if he waits till no one under
bids him. But the less any one offers
to take the better for the Association.
So each loan Is put up at auction and
awarded to the lowest bidder, and it is
to the interest of the Association to
work on that plan which secures the
very lowest bids, OH good security,
from beginning to end.
By keeping these points in mind
good gccurlty, lowest bids, and tha
fact that each share loaned is fully
paid-no member can fail to under
stand the working plan of the Associ-
alton, and the exact effect of any
which proposes to nerfept
that plan. 4he moment these guiding
points are lost sight of, come per-
pleSity and Misunderstanding.
Now, that system which is the best
for the Association is the hest fer each
because it is positively mu-
tual benefit enterprise. To illustrate
this,l us compare the results Of drag
ging the thing along tor eight years, or
closing it up in five. Take the case OF
a member who waits until the end to
get 1928 for his share. lie pays In and
gets ont as follows: