Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-02-13

would, therefore, be the easiest matter in
the world for this chamber
of commerce by commit
stock to the amount of $l,0O0,O00 in 5000
shares of $500, each payable monthly in
| installments of 81, and giving a monthly
income of $4,000, to be loaned to the mem
bers of the association to build houses or
to invest in real estate to be improved with
dwelling houses and sold on monthly pay
ments, or improved with stores and ented
the rents clearing the cost of the stores in
eight and a half to ten years.
WOULD IT HELP THE CITY
| to organize such an association? For sew
eral years the great loss of population and
wealth which this city has sustained in con-
sequence of the lack of houses and stores
to accommodate the rapid increase of pop
ulation and business, has been subject
of frequent remark in the public press
and among observing citizens who have Ia
mented the fact that capital was so slow to
supply this great want and reap the 20 per
cent interest which tenements have yield
ed, besides the rise in the realty. Such a
want can be supplied by the organization
of an association to build our hall, and en-
dow our chamber of commerce, and at the
same time to build houses and stores, as
well as to loan money for these purposes.
The 400 members of the chamber of COM
MERGE, and as many more who are not, can
become members of this building associa-
ton by taking one share of stock or 100
shares, and paying
ONE DOLLAR PER MONTH
or 500 as they like. Several gentlemen
of the chamber have already expressed a
willingness to lake 100 shares and pay
500 per month. Five hundred members
averaging so per month, gives
S1,O0O,000 of stock and an income of
$4,000 per month. This is only one
eighth the income of the associations now
organized. We have contemplated that
the chamber as an organization takes
100000 of stock and pays IN $500 per
month. And just at this point the mem
bership payments of $12 year can be
welded in and made payable every month
at the same time, and in the same manner
as the monthly dues of stock are paid in,
only they are not paid in as stock but
AS MEMBERSHIP FEES
for expenses just as many building associ-
atoms provide for an initiation or entrance
fee of so much per share, and similar fee
besides dues on stock payable once every
year for expenses.
The building association would thus
have two classes of members those who
subscribe simply to build the chamber of
commerce and keep up its organization
and have no further connection with the
building association, and those who sub
scribe for building association stock alone
and have nothing to do with the chamber
of commerce. The building association is
to be entirely independent of the chamber
of commerce except as its financiers shall
collect its fees, loan and compound its
revenues and pay its funded debt.
By providing that the membership fee
shall be paid for the benefit of the cham
Der of commerce and to pay its expenses,
at the same time the stock dues are paid,
and with the same penalties of fines and
forfeiture the $4,000 of membership fees
becomes as solid and reliable a fund to
bank on as the stock installments them
selves, and will cost nothing for collecting.
1t is we'll known to all building associa-
ton men that these monthly dues are paid
voluntarily at the monthly meetings with
wonderful promptness, two or three hours
sufficing to take in as many thousand dol
lars.
WILL THE STOCK PAY?
Building association stock is always SUBJ
scribed with the understanding that the
stakeholder can withdraw in thirty or sixty
days after paying one year and take out
all that has been paid with interest. And
yet Withdrawals have to be enforced when
money cannot be loaned, so unwilling are
stockholders to withdraw even with the
enormous profits of from Is to "a per cent.
One of our associations was sued for an
attempt to enforce a withdrawal with a
tender of 16 and 10 per cent, and the
court asked to enjoin the association. Thus,
as savings banks, they have to run on their
depositors, instead of being run on. Their
profits range from 8 to "a per cent, &C
cording to the age of the stock, and are Sc
cured by real estate mortgages. This is
the situation where the associations con-
fine themselves to loaning money
TO THEIR MEMBERS.
Now, the question is, cannot building
association buy good business property
which is yet in it's inchoate state, and build
stores on it, with rents which will pay for
the buildings in the eight or nine years,
just as its Eembers build on loan, and,
with the rents, pay The monthly dues, prin-
cipal and interest, and make their houses
clear in eight or nine years? Especially,
can this not be done equally as proftably
as to loan to members, when, besides
realizing 20 per cent. on the build
ings, steady and healthy rise in
the realty is sure to follow, if purchases
are judicially made. And as to dwelling
houses, is it not feasible to purchase blocks
and outside land at wholesale rates, build
on the lots and retail them on monthly
payments or otherwise at such an advance
as will be equal to the money loaned?
Especially is not this feasible if arrange
ments are first made with some railroad
company to
RUN CARS REGULARLY
aud frequently for the accommodation of
such settlement. Ono or two hundred
houses built in such an outside locality
would alone double the property in almost