The clarion. [volume] (Jackson, Miss.) 1883-1888, 1885-09-30
Builders Associations How They
Work.

| ~ person can own any number of
shares, not exceeding % out of each
IoOV issued, and pays for them at the
rate OF - cents per share per week.
A stakeholder is entitled to a loan
at once of $500 on each share,
less the premium bid for same
10 illustrate. Suppose a stock
holder owning l5 shares, desires
loan with which to buy inn
proved or unimpfoyed property
and build on same. He n en-
Titled 70 loan of 5000 on each
share, equal to......................$3 $4,000
Less premium Of say IS per cent $50
Net proceeds. ............S .S2250
His annual installments on -
shares st . cents per share per
week, which 60 to pay up his
stock and consequently his loan
OF $4,000, would be................S l95
Annual interest on $4,000, at 6 per
cent. payable III equal weekly
lnstallments............................$ $50
Total annual payments..-.........-..s 30
1t viii take probably not more than
nine years for the stockholder to pay
up his loan, hence he would have TO pay
nine times the annual amount of S315
or total amount OF S3375 in nine years
and acquire a home free from all incum-
brance.
Suppose instead of borrowing from
the Association, in the manner
'Hescribed, he borrows the net
amount received ON his loan from
a capifalist @22.J0
For 9years at Sper cent. per annum.
In years he would have to pay
Tor interest alone-.-.....-............ io2O
Making his total outlay, principal and
...............-.....--....-. S3ofU
While for the same result, in the
same time, he would have paid
to the Association, in the manner
Or q difference in favor of borrow
ing from the Association of......S 495
II, therefore, he borrows from the
Association, and pays in 8 years. .S3375
To cancel his snominal loan of $4,000,
for which he took net............ 2250
And has actually paid over and
above the net he received the
sum of.-.......-................
He has then paid as interest the
annual sum of 1925, or 8 per cent
per annum on the net received,
(S2250) TO the Association, in
stead of Sper cent. to a capitalist.
Suppose instead of acquiring a home,
by paying as above the sum of $3375,
he chooses to rent a house at say $50
per month. In nine years he pays as
rent the sum Of $3240. In other words,
by paving only $l35 more, in nine years,
than his rent, would be for the same
length Of time, he acquires a valuable
property.
Thus, to the mechanic, laborer, sales
man, clerk and tradesman, and to all
persons anxious to relieve themselves of
the burden of rent, the investment in
this stock offers the easiest and cheapest
become Independent of the landlord and
tenants of their own houses, at cost
per annum but little in excess of what
they are now paying for rent
The secret of the success of Associa-
tions of this nature is that the stock
holder receives the revenues of the
property instead of the landlord. The
dividends being placed to the credit of
the stockholder, assist him in paying up
his stock, and consequently lessen the
number of the annual payments neces-
sary to pay it up in full.
To those who may not desire to borrow,
the stock offers a thoroughly safe and
lucrative investment, better than any
simple interest bearing note or bond.
With the experience obtained by other
associations, the stockholder will not
probably have paid more than so per
cent, of the face of his stock (in weekly
amounts as above explained) before it
will mature, and be payable to him face
value dollar for dollar.