The daily gazette., 1880-03-09
From Practical American.
BUILDING Societies.

BUILDING Societies are based on the
sound principle that those who want to
carry out some enterprise are In the end.
best off when they help themselves.
That workingnen want homes, and de-
serve comfortable homes too, none will
deny, especially when 1t is considered
that they are the prime creators of all
wealth. A race OF idlers, like our In
dlans, remains always poor; race Of
industrial workers, like tie thoroughbred
Yankee, accumulates wealth, and their
combined efforts, applied In the right
direction can accomplish wonders. +
IL workingmen keep themselves de-
pendent upon capitalists to build houses
for them, they will always remain ten
ants, who every ten or twelve years pay,
the full value OF the house they occupy,
and never become house-owners them
selves, especially when they live from
hand 10 mouth, or, what is worse still,
when their savings are swept away by
the failure of some savings bank or life in
surance company. This thing is common
In this country, for the simple reason
that the directors of such unfortunate
Institutions are net all put In jail at
once and tried for felony (brssch of
trust In regard 70 other peoples money.
Immediate incarceration without bail Is,
under such circumstances, the rule in
all well-regulated countries in Europe,
and 1t introduced here 1t would soon
stop this species OF fraud on the poor
working classes, morally more criminal
than the burglary Of. residences Of the
rich.
Building ASSOCIATIONS were established
In order, 20 take Advantage Of the united
savings of'the working Glasses, and in-
vest them in such a manner as to have
capital disposabe for the benefit of those
who wish 10 acquire dwelling OF their
own, and become Independent of land
ords, a most desirable condition for
every man.
Such associations, undertaken more
than fifty years ago in Germany and
England, have been so tourishing,
especially in he latter, country, that, in
1872, an investigation made by order of
the government revealed the fact that
900 such societies had On annual income
Of S55, 100000, besides $S5,000, 900 as
sets.
Some thirty years ago, many such
societies we're started in this country,
but, as is always the case when some
peculiar kinds Of felony are notpunisha-
BILE by law, a great deal Of fraud was
practised, and many of such buildii
associations went by the board, and
those who had invested came out with
loss. Fortunately the ,e times have past,
and at present,the existing building asso-
Citations are based on sound principles
and managed honestly. There are now,
for instance, $50 such associations In the
city of Philadelphia alone; they have
been estab blished by the workingmen
themselves, and are entirely managed by
them, as they have learned by bitter ex-
perience that If others establish and mat.
age such enterprises, 1t is done for the
ultimate profit offthe managers and not
of the workmen. These philadelphia
societies represent now a capital of about
Sl0O,000,00O. Gradually such societies
aave spread over the Eastern and Mid
dies States, and especially in California.
One result was Withdrawal by the
working classes of their inve estments
from public banks and savings institu-
tions in order to invest them in the
building associations, and this has no
no doubt very materially contributed to
the failure of many such banks, the
building associations having proved to
be in the end better and safer invest
ments for spare funds, even for those
who do not intend to build, than are the
savings-banks. Why this is so will be
clear from tbe following account of their
management which we give in response
to the inquiry of correspondent.
nj taft In
States organized and Incorporated hn-
der the provisions ofspecial legislative
enactments. As an illustration, we VIII
give an account of the second section of
the First Cooperative Building Society
of the City Of New York, which was
organized just one year ago, and IL
managed by men who had been very
careful in the most minute details, amt
emInently successful in carrying anoth-
or building society though, until NEST
all the members had homss Of their own.
This second ection has now 150 men,
bers, who pay % cents a week tor each
share they take. Each share has nomi-
nal value of $500, and each member must
take at least two; but may take no more |
than twenty shares, in order to prevent
speculation.
When payments are not made at the
specific time, a small fine is levied. The
members Is SIX; some subscribe for them
selves and their wives and children.
When the accumulated payments amount
to 5000, the first "auction" is held.
Then the msmb bers who are eagerfor the
money, either to buy or build a house,
offer premiums for the amount their
.hares entitled them to draw. which is
$500 for each share, anc the appropria-
tlon, as the capital for the month is call |
ed, is voted on the best terms offered.
The trustees, with the society's lawyer,
examine the property on which the
money Is 20 be loaned, and II satisfied
with the fairness of the price, the mon.
ey Ia given to the successful bidder who |
executes::a mor'gageto the society for the
amount. .t4..
Henceforth his payments are increased. :.
In addition To The twenty-five cents per
share, he now begins to return the ap-. |
to the society in mohthly |
payments at the rate of ten per cent per |
year on the amount borrowed. If the mem |
Der does not choose to bid in All appropria-
tion for,say, five years, the amount of /
weekly payment he has made is general
ly credited when he comes to make his re-