The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-03-24
Ruilding and loan AssOeiatiOns

Butld1nB ana loan ANaoetiltloila'
As We have once or twice published
adjudications in the courts that we're not
very favorable to these associations lin
the matter Of interest charged by them,
it is probably nothing more than mir that
we should publish what is said ON their
behalf by the Chicago Tribune. hspeak.
ing especially Of the building and loan
associations Of Philadelphia, where there
arc about 600, and where their aggregate
capital amounts to Sl5OOOO,OOO, that pa-
per remarks that these associations are
all organized on substantially the same
plan, which is as follows;
A share Is issued to every applicant,
One dollar per month is paid on each
share. Each month, the money on hand is
loaned to the shareholders who offer the
largest premium and can give the best Sc
curity, No loans are made except on
real estate. The premiums bid some
times amount to % or even 80 per cent
This is one source Of income and the
monthly interest is another, Fines
small in amount, rarely incurred, but
vigorously exacted, are still another,
In eight and a half years, tho amount
paid in will amount to (l02 months at 81
Sl02, Profits, interests, and fines swell
this to $500, the par value Of each share
Tho shareholder then receives this sum
thus making a net profit OF S9S on an in,
vestment OF SlO2, or, II he has borrowed
money, his mortgage Is cancelled pro tdHtO
A man can hold any number OF shares
This fact enables the labOFer to buy hii
home. A man who takes five shares In
one OF these socities will accumulate
81 600 in eight and one.halt years, BY
paying $50 per year. lfhe bOrrOWs 81 ,bOu
as soon as he becomes q stockholder
at such rate that he pays an average Of
Sl4Oa year in premiums and interest (this
Is the usual rate on loan ofSl 800, and
buys with this sum house aud lot, which
are pledged to the society as security, he
will pay each year, $200-that Is, $50 on
his shares and $l40 on his loan. Al the
end OF eight and one half years, his pay.
mens on his shares will cease, and he will
have 81 900 to his credit OH the books
which will cancel twO-thirds Of his mort
gage: He will then own his home; subject
to mortgage Of only $500, II he now
takes three more shares, his annual dues
will be $3.50 on them and about $A in
forest $50 in all, In eight and hal
years more, his shares will BIO worth $500
which will cancel his mortgage and give
him 800 cash. lie has thus bought hii
house and lot in seventeen years, paying
$500 per year for half that time, and SSt
annually thereafter. This Is S232O il
all. II he had rented such u house, he
would have paid $500 year rent, OF
81, 400 in the seventeen years, and w0uld
then have owned nothing, II lie can aIIOrC
to take eight shares at the beginning, hi'
house will be paid for In eight and hal
years. Thousands Of wOrkmen have DO
come small capitalists in this way,
The societies are organized, controlled
and managed by workingmen, This ex
plains their success, Us 1t explains that o.
the great cooperative establishments o.
England and Of zc-Delitsch's "Peo
pies Banksn In Germany. A summary
Of the report Of one building and lOar
society, "fhc Artisans" shows that III
receipts Inst year we're $sS, 622; the loans
SGS,S72; and the profits, SlO,740, Tho
total property is $3.50, III, and the mort
Cages held amount to 1927 800. The ex
pense Of managing this business wal
only 1873. This is simply marvellous
One or two associations Of this sort among
the ioreign.bOrn citizens Of Chicago have
been very successful. Similar societies
Of Americans here have been, We believe
failures. The reason for the difference
Is to be found in the plate.glass and black
walnut furnishings Of the offices Of the
latter, and in their long lists of salaricd
officials.