The Abbeville messenger. (Abbeville, S.C.) 1884-1887, 1885-09-02

In pursuance of n call made by the corpora
tors, a number of citizens met in Mr. Mowers
office Friday afternoon to form u Building and
Loan Association.
JnO. D. Peoples was elected chairman of
the meeting, and j. w. NJ. Simmons sccrc-
tary. The chair explained the object of the
meeting. Geo s. Mower, by request of the
meeting, read the constitution Of Assistance
b. 1 l. Association in Charleston, and e1-
planned the na0dus Operandi OF such associa-
tions. The following are some of their fea-
lures:
The primary object is to enable any MEM
Der to become his own landlord, which he can
do by paying into this joint concern for a few
years but little, if any, more than he would
pay during the same time for rent:
The association is a mutual benefit and
stock company.
The shares are $l.0O each per month
during the existence Of the association.
at the end of each month the entire amount
paid i'll IL put up and lent to the highest bid
from the amount bid for, and the bidder re-
ceivcs the balance, for which he must give
security. A member is allowed to bid for 5000
on each share held by him, and after he has
borrowed pays i'll addition to his regular
assessment Of 81 90 on each share held by him
q per cent. per annum on the gross
amount bid for. To illustrate: A takes III
shares: his monthly assessment. will be $40.
If he wants TO borrow, he cnn bid for ~, 900.
Tho 1900, less the premium, is lent him, and
he then paws interest on 81. 900. The interest
on 81, 700 at 6 per cent. liz 1920 a year, or SIC
per month; so that he now pays $40 per MT nth.
Thus if he owning 10 shares, no bids off 81, 00C
Mt IL premium of say thirty-fve, he receives
$40 assessment and his $40 interest pei
m~onth-$20-until the winding up of the
association, when he owes nothing to tho
association and it owes him nothing.
Tho Association winds up when each shart
becomes wcrth $500, and this is ussually the
case in 100 mouths-S years and 4 months.
The following figures will show the ndvan.
tage Of this plan Of borrowing over the ordi.
nary mode
Ten shares Mt a premium of IS will net the
borrower 81 300. On the ten shares he pays
$40 a month as assessments or dues; and III
also pays $40 a month Oh that interest OF
that borrowed-$2,0 900 in 100 months.
Should he borrow 81 300 for 100 months il
the ordinary way, the interest would amount
to S75S, which added to the principal would b,
$2,058-a difference of $59 in favor of tn,
building and loan.
To those who do mt wish to borrow tn,
association Offers Il safe and profitable invest
mcnt, and is especially convenient to persons
who have small sums to invest from MONTH,
salaries or incomes.
The above gives the general principles. DIFF
fercnt associations differ in details.
The following resolutions were adopted
That no person be allowed to take more tina,
twenty shares in his own name and right: an,
that the membership be confined to whites.
The following committe was appointed t
canvass for subscriptions: JAS X. p. Goggaus
Eduard Scholtz, w. H. Hunt, jr., and Jas. F
Kilgore. On motion, Mr.. Peoples, chairman
of the meeting was added to the committe
This committee will canvass for subscrip
tions, and when Ave hundred have been take
a meeting will be called for the purpose o
preparing n constitution and bylaws and 70
effecting a permanent organization.
The committee have already succeeded j,
securing subscriptions for six hundred an
fifty shares-only five hundred being neces
sary for organization-and a meeting of tn
stockholders wilr be held at Mclaughlin Hal
next Wednesday at 4 p. IN, to organize. II i
desired and expected to raise one hundre,
shares.-Nep6erry Observer.