San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1884-12-04
10 ALL wRON IT NAy CONCERN
u est EyeryboAy.

10 AL wnON IT MAy CONCERN
ID est Everybety.
For two weeks OF more tho attsntion o
the citizens OF Ban Marcos has besl
called 10 the Hdvis,blliy Of establish
Ing . Building aud Loan Bssociation In on
midst. In order to arrive ~ . better an
fuller understanding OF the proposed enter
prise, . meeting of citissns was called Il
convene At the Court house Nov. 9th at
p. N. In Response to tbs call quite mum
Der Of prominent business and professionA
men met and after clear presentation
and fair discussion of the subject BY Mr.
Nv. Hutchins, Judge w. D. Wood, W. q
Jones and others, committee Was appoint
Cd consisting Of Messrs Geo. T. Mo0ehss,
W. q. Jones. J. 'Hutchins, Sterling Fish
or, W. d. Wood and E. Northcraft, 70 draft
. Consultation and BY. Laws TO be submit
ted 10 convention Of citizens At the Cour
Houss Monday, Dec. 18th, 1884.
This much has::alresdy been accomplished
and II only remains for the people to take
hold, perfect an organization and petition
for q charter.
II will be remembered that such an enter
prise as Is proposed Is not an untried one.
Building and Loan Associations have been
established in large number Of cities and
towns throughout the country, and their
history IL. that, wherever properly mAnAg'
ed they have proven great success. Bss'
cd on business principles, they have moi
failed to enhance the material prosperity Of
every community where they have been or.
gauized. We are then embarking upon no
unknown sea, but can look TO San Antonio,
Austin, Palestine, etc. and see what they have
done and are doing for the growth Of these
cities. Every class Of citizen is benefited
by such associations. The working man Is
enabled to build his family house by the
aid Of the association, which perhaps he
would never have done were he to wait un.
Ill he had saved sufficient amount to build
and pay for at once The property-owner
finds ready sale for his urimproved lots.
The man OF moderate means and
small salary finds in the association saw
inRs bank, paying him good interest on his
small monthly deposit. The fact Is every
person in the community is directly or in
directly benefited. 'lf Fs -..
In order to understand more fully the
working Of the Building end Loan Associa-
ton, let US suppose that We organize with
200 shares of $500 each, which amounts to
CSC, 900. One share at $5 per month is $50
per year and at the end Of i've years $500 q
paid up share. 200 shares at $5 per month
or SEQ per year per share would net per
year $4,000,
Now estimating the expenses Of the as.
ISOLATION at 81, 900 per year, it would leave
for the use of tho association per year, ele-
ven hundred dollars. This would enable
the association to build per year eleren
houses at 4 cost Of one thousand dollars
each, or t,oenty houses at q cost Of five hun
dred dollars each.
The interest on II, 900 at IL per cent. per
annum would amount to three.hundred and
twenty dollars per year. Now each stock
holder paying in siIty-dollars, per year,
would receive as his shire of the interest
six dollars and sixty cents aud for the five
Year, on his share of three hundred dolla,s,
80 dollars interest At the end of five years
his share would be worth three hundred and
ninety mine dollars, and at the end Of six
years four hundred and thirty-fivo dollars.
Suppose share holder desires to build
a house that will cost six hundred dollars.
He borrows the money from the association,
say at IL per cent. interest per annum, pay
able in six annual installments The first
installment would be ono hundred and twel-
twelve dollars; the second, one hundred and
twenty -four dollars; third, one hundred aud
thirtY-six dollars; fourth. one hundred aud
forty eight dollars; fifth. one hundred and
sixty dollars; sixth, one hundred and seven
two dollars Total cost of house at the end
of six years eight hundred and ffty-two
dollars. At the end Of SIX years he has his
house, which cost six hundred dollars, his
share of stock. worth four hundred dolls. and
sixty six cents, total one thousand and thirty
eight dollars and sixty cents, and he has
paid out in cash in six years total Of eleven
hundred and fifty-two dollars and sixty
cents. So he has his house and stock at the
end of six years, and is out only an excess
Of one hundred and thirteen dollars and
thirty-four cents above the value Of his
house and stock.
Let us now make the calculation on the
supposition that the stakeholder rents for
the six years instead Of borrowing the SIX
hundred dollars and building. Put the rent
ct eight dollars per month (Which is very
low. II amounts TO ninety-six dollars per
year, or for the SIX years, Ave hundred and
seventy six dollars.
Now the difference in building for six
years and in taking share in the associa-
ton at three hundred dollars, paying Il out
in five years and borrowing six hundred dol
lars at 10 per cent, paying it out in six an
nual installments is this; At the end Of the
six years by the latter mode he has paid out
Ave hundred and seventy six dollars and has
nothing 10 represent Il. So the net gain
by the one process over the other In six
years is Just Ave hundred and seventy -siI dol
lars.
Say taxes snd insurance on one thousand
and thirty eight dollars worth Of property for
the sir years d per cent, which is an over