Morning journal and courier., 1881-07-12
New Institution.

A meeting was held last eveningat Loomis' | Temple by the above named corporation, l when a statement was made and other facts presented. Mr. William Franklin presided On the stage also were Isaac Anderson, F. W. Pardee, R. s. Pickett and others. About 400 people were present.
 The General Assembly of the State of Con- necticut, after thorough study by it's com mittee and lengthy and exhaustive examin- ation of the subject at the January session, 1881, granted an act of incorporation to the New Haven Cooperative Savings Fund and Loan association.
 The names of the corporation are well known here and elsewhere. They are Will liam Franklin, John E. Bassett Franklin H. Hart, George M. Harmon, Isaac Anderson, Nelson Adams, Geo. L. Fox, Charles P. Arm 1 strong, Charles l.. Baldwin, Henry F. Peck, | John A. Richardson, Frank W. Pardee, Ru- fus s. Pickett Wilbur F. Day, John c. Col l lins, Frank s. Andrew, Charles Fabrique, Robert E. Baldwin, John Ruff, Johnson T. 1 P1att, William J. Root and John M. Peck. 1 Some account of the objects and methods of the organization in behalf of persons who may become borrowing or lending members, | or who may desire to become owners of | homestead free of encumbrance by conven- tent system of small payments, is as follows:
 There are those to whom s'rent'' and 'tin- terest" must ever be confusing terms. Many 8 man pays year after year in rent what, with judicious placing of his money, would en- able him in due season to extinguish his i- l abilities for rent and make him the owner of the property which he now hires
 AS long ago as 1915 the Earl of Selkirk es- tablished the first building association, erect, l ing houses for homes on the river Dee and allowing his tenants by paying little more than. ordinary rates of interest on the cost to become owners of the homesteads. An ar ! rangement was afterwards made for raising 1 fund by small monthly contributions loaned by the association to the contributors at 8 | given rate of interest for the purpose of buy ing or building homes. A borrower made l monthly payments on his loan, including the I interest and portion of the principal, until | the whole was refunded The money to be loaned was offered to competitive bidders, the one offering the highest premium being entitled to the loan. The premium so re- ceived, after paying salaries and expenses, was divided among the depositors of the as- sociation according to their respective de- posits.
 In 1886 the British Parliament passed an act promoting loan associations and their success in England led to similar foundations in this country. In 1855 there were AS savings banks and build ing associations in Connecticut and with a general act of incorporation more than $12, OOO, 900 were thus invested. No financial measure for the benefit of the man with only moderate means was ever more benefcently devised than those that created and fostered associations of this character; but it was discovered after time that abuses were pos
 sible in the matter of charging high bonuses | to the borrower for loans, in order to obtain
 large gains on the money of the association,
 the borrower believing that he would receive
 in dividends all he had paid in the way of
 loans and mistake was also made by divi-
 ding all such bonus money as fast as asreceived,
 whereby the early subscribers received an
 undue proportion of returns as compared
 with subscribers coming later into the associ-
 ation.
 These two disadvantages being the subject
 
 business under the old system of advanced
 bonus as at first practiced by the New Haven
 institutions Chat is, taking the bonus from
 the amount of the loan.) After this was
 adopted the system of a monthly bonus of
 one half to three-fourths per cent, and
 while 1t was an improvement in some re-
 spects, inasmuch as the bonuses were not di- vided faster than received the arrangement
 was even then as unfortunate for the bor-
 rower, who studied ultimate results. The
 mystery consisted in representing to the bor.
 rower that he was to receive large part of what he might pay in bonus in the way ot dividends. This led to a thorough investiga, , tion of the subject, which lasted more than one year, with the employment of several ot the most competent mathematicians and l bookkeepers, and at expense of thousands of
 dollars; the truth thus made clear be1ng fully pointed out in a work published in 1856, en- titled the Building Associations of Connect
 icut and other States Examined" which worI
 contained model plan to secure results uni
 formly equitable to all parties
 It is with the adoption of many features o1
 the model plan that the incorporators of the
 New Haven Cooperative Savings Bank and 1 Loan association now prepared to trans act business, and they invite careful and intelligent examination of every detail Building associations and cooperative loar associations without the unsatisfactory con.
 ditions to which reference has been made are
 now very successful in many of the States oi the American Union and especially in Massa
 chusetts and Pennsylvania. In the last men
 tioned State there more than Q thousand
 of these institutions, all of them do1ng busi-
 ness sound principles, and in Phlladel phia, the city of homes small, convenient
 dwellings are to be found everywhere within | nf a nj a ra
 suit of this system of savings. They render
 unnecessary much of the evil which comes , from the tenement house interest.
 There are in the city of Philadelphia 60
 Building Associations holding capital o over 856.O0oUOO and in the State of Pennsylvani,
 S2, 400 of such associations with capital o
 $150OOo 0OO Under recent decision of the superior
 Court of Pennsylvania the capital Of these assoca
 tions will be compelled to pay tax of mills OF
 s1OO, yielding the Treasury s6Oo,0oO per annum The ambition to own a home is natuaa
 and It is a right belonging to every family in
 the land.
 The report compares the benefits of the , ] organization in question with those attending
 deposits in a savings bank in favor of tht loan association, in that the shareholder 1T
 the latter has the incentive of owning hi homestead, and in that in this proposed insti tuition, little by little, one can afford it. ht
 gains the ownership. It's policy would be tC charge the lowest rate of bonus that will
 sustain the business. This thought was fol , | lowed by the other recommending and ex plaining the cooperative feature of the organi
 zation. In this the depositor is a stockhold f CT, reaping not fixed interest but the bes afforded by the profits, and has an equa | chance as a borrower. The borrower k f treated as one of the partners in the busi
 ness and the association's and his interest art 1 identical. The bonus is limited to of one
 per cent. 8 month, equivalent to 3 per cent l a year. That with the interest, per cent I l makes an outside cost to the borrower, ever
 if there were no profits in the sharing of thu stock, of not more than per cent Int g borrower also shares in the dividends accru k ing to the stock by it's interest earnings and
 other sources of income.
 Borrowers can make partial payments al
 their convenience toward complete owner !, ship of stock. and the directors of this asso - l citation will allow interest from time to time I on such partial payments. Subscribers te
 the stock are allowed to become borrowers tC the amount of $2OO on each share subscribed l. for, suitable security of course being given The borrower is allowed to make deposits o1
 his loan and can take share of stock anG ' pay on it according to ability up to $5 per
 month, or can take his regular share of stocl ! conn and nav 1ooo1xb opd 7oa6<