Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-03-28
BUILDING ASSOCIATIONS.

Their SUGGEST and the Work They are Do
ing AS Exemplified by st. Paul Building
Association No. 1.
The two thousand five hundred members of
st. Paul Building Association No. were
served, at their last mail delivery, with printed
copies of the report of Secretary McClung, re-
citing the operations of the association for
1880 and reviewing its operations in the eleven
years of its existence. The following extracts,
though disjointed, will convey more informa-
ton as to the workings of our building associ-
atoms than could easily be given in a general
epitome of the secretary's long but interesting
report:
1.-THE case may be stated thus: We have
made 1896, 900 of loans. We had to foreclose
for only about $4,000 during all the eleven
years, embracing the seven years of the crisis.
We made nearly 500 loans, and had only to
foreclose on thirteen persons"
"Our business at present is over SIS, 900 cash.
Two and half per cent.-the mere brokerage
for loaning this sum would cost us 81 ,125 per
year, saying nothing of collecting, taking care
of the securities of the association, studying
the actuary theory and science of its financial
problems, AID attending to the thousand de-
tails necessary to the success of such an in
stitution Our members have made from 16
to 26 per cent upon their stock, and drawn it
either in cash, or in houses of their own, paid
for by this same per cent, and it has cost them
one and two-thirds per cent, commissions for
all the business"
Here is a statement which, while it may
serve as hint to some stockholders, is also
an evidence that the class which is benefited by
these associations is one which has means
hardly equal to its necessities. That is, they
are poor, or living on limited incomes, but by
aid of this one association, out of dozen or
more In this city, nearly 500 have obtained or
are buying homes, while only thirteen who
have tried its help have failed. The member
ship fees in the eleven years have amounted to
s., 462. The fines for delays in payments Of
monthly instalments have amounted to $685.,
81. The aggregate of expenses, as above stat
ed, is S., 1882 50. The secretary's statement ID
as follows:
"Adding the fines and fees together, they
would amount in the eleven years to s11 ,499.-
10 against SS,37S.52 expenses, or an annual
average OF Sl,O45.SS income from these
sources, against an annual average of 1880
for expense, or So, l00.67 more than necessary
to pay all expenses of salaries, rents, fuel,
lights, registry fees, legal expenses. blank
books, printing, etc without trenchlng upon
a dollar of the monthly lnstalments for dues
and interest"
"The stock of this association stands SO high
in the market that 1t is diff cult to find any for
sale And the association IN it's eleventh and
twelfth issue restricted the stock to those de-
signing now or hereafter to borrow. Under
this rule applicants for about $4,000 of the
eleventh series year ago for investment were
turned off, and the stock refused to them. The
banks loan on 1t at it's withdrawal value.'
GA business of over half million dollars in
loans and cash redemptions of stock has been
done in II years, at az cost of S9,39S, or about
80 per cent If & money broker had loaned
this money, his brokerage alone,would, at 2 1-2
per cent.-the ordinary charge-have amounted
to over 1880, and had he charged similar
rate for collecting, keeping up insurance and
taking care of the loans for s years, the cost
would have been S25, 900, or three times what
it cost this association for loaning, collect
inga, nd all other expenses.