Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1885-02-28
HOW TO GET 4 HOME,

List ofSccieties Oraanized-Premi.
ums On Money Borrowed
Profits TO >hare-hold.
ers-BuiIding up
| Outlying Ter.
ritory.FaciS
and Fig.
ures. '-'
rFrom the st. Louis GIobe-DemocratI
How shall l get a homer Or all
questions there is none other so impor-
tant to the truly patriotic ci'izell OF
small means. In no country iii the
world do SO large percentage Of the
| population own their own homes.
| The desire for home is the strongest
passion with the great army OF thriv-
ing middle-class citizens. The Thrift
| ty mechanic, the industrious clerk, the
, fairly successful small sh0pkeeper and
suIne parties of even little higher So
cial rank are alike Interested i'll the
subject. The object of this article is 10
show what opportunities are afforded
in this direction i'll st. Louis by build
ing associations organized under the
state law.
In eastern cities building societies
/ have been in operation many years,
Philadelphia being credited with the
formation OF 400 such associations, and
| the greater portion of the city having
been built up with comfortable homes
| by persons who have made these insli-
tutioms savings bank, SO to speak, for
their small earnings. In other cite
their success has been equal y marked,
the benefits accruing mainly to the
poorer class of citizens, who have be-
come freeholders by the self-imposed
duty Of paying dollar or two each
mouth. Experience has taught that
the habit once formed of saving this
small amount, lis seldom departed from.
| even by the common labOrer with a
family to support. Associations that
encourage such efforts are conducive
to thrift, sobrety, economy, and indie
pendence. They assist in making poor
men better citizens and property own
ers in their own right, and in creating
a community in which communism
will not be tolerated. The building
association comes to the relief of the
meLnanic, clerk and laborer, and ell
hances the taxable wealth within the
circuit of its operations. What men of
this class ordinarily pay for rent will
furnish them with house to live in,
that can be called their own in eight
years from the time they become mem
bers, provided they have a piece of
ground to build on.
i AS REVIVED IN ST. LOUIS.
In St. LOUIS these building associa-
tions are practically new feature,
only two or three being in existenc.
i prior to the enactment OF q state law,
passed two years ago, under which
! fourteen have been Instituted and are
now i'll operation. All those organs
lied under the new law are practically y
the same in the main features. Every
six months they are. required 10 pub
lish u statement, verified by the oath -ol
the President, or. Secretary, setting
forth their actual financial condition
and the amount of property and liabili
ties, and the secretary must also depos
it a copy of the statement with the
+ secretary Of state.
A gentleman who knows whereof ht
tspeaks says it costs for the first year
> from $500 to $1,000 to organize ant
conduct building society with CAPT.
{ tai stock OF SlU0;e0u. This none,
| goes tor the charter, books, stationery
printing, and the salary of the secre'
} tary, tile only officer who Is paid |
! salary.
D The following example will give {
D general idea Of how the business i
D conducted: A member holding share
D representing 1900, and owning a 10
s valued at S5Ou, can procure loan o
s ~ ,OUO to build a house upon the land
= giving deed of trust upon the reait,
5 to the association and turning his stool
,ya,. alSn oHIitippaI SacHritv
goes without saying that the borrowe
!: must pay his monlhly dues on tn
:: stock all the same until it is paid up.
THE SOURCE OF PROFIT:
The principal profit to the association
is derived from; the priviedge to boz
. row money that is disposed of ever
, meeting night TO the highest bidder, l
per cent being the average amoul
! paid, but anxious borrowers, read
and eager to build, often paving a
= high as % per cent premium OH til
s amount OF money secured. To .ilu,
/ trate this more fully, when compelito
6 between members Tor IL loan is strong
7 one party, rather than defer his pre-:
6 ent opportunity, may agree to pay 500
5 tor the loan of s. 900, and, being til
) highest bidder, would get the acculnu
- dalton, on which he would be called t
. pay an annual interest OF per cen
= In such case the borrower woul
have the use of $500, and his indebted
ness OF $500, for the premium, woui
be charged to his account at the rate Z
/: so a year; that is, assuming that III
ii society. would wind .nD in ten years
re If the boz rover cleared his loan in fv
:, years, and the annual interest woul
~ cease and the expense OF his premiui
y would be reduced to. S1UO. Partie
rs who do not borrow simply pay month
le ly dues, their stock being credited j
=, the meantime with its pro rata of asso
n. cialion profits until the shares becom
IT of par value, when the org-.IiZalio
n winds up its affairs,
e One association, the Equality, sal
q :. to be the only one of the kind in exi!
le teuce, is all exception to all others i
n reference TO paying premiums, ina:
much as it provides in its bylaws fo
. a pro rating or cquallzng OF the prcmi
j. ums paid by its members. This pr
j. rating of premiums, making the e,
=, pense fall alike on all, is to be carrie
ID into effect at the windup of the asso
e. e. citation. By. this method it can b
V. readily seen that the profits to the nol
l. borrowing members must neceSsaril
er be very much less than in other aSsC
l. Citations where there is 10 such rul
I 1t, however, has the effect to induC
lg all its members TO become borrower
: PRIVILEGES.
From the semi annual statements
" these associations it would appef
"a several Of them have loaned out mol
We money than they received. This com,
from tie custom Of anticipating montI
es ly dues and selling the privilege
be borrowing the next first money in II
re treasury. A privilege having bee
Y, purchased, the transaction goes Of II
2, cord Oh the associations books, wher
e. rs a. matter of fact the borrower h,
Eot yet received Il dollar of tlie prime
i. pal. The certainty of his getting Il
iu!l benefit OF it III Gle time seems
.s be unque.liomed, as it is asserted the
y Institutions have a banking cred
=. equal to their total monthly incon
C from dues.
" The borrower, however, seldom
Is ever sees dollar of his loan, for Il
Us reason that the money to pay for h
q, building is paid out under The supe
IL vision OF the association TO the buildii
AT contractors as a safeguard against ii
possibility of otherwise having Il
m"ney frittered away which it was il
NJ tended shpuiG bn pynpui.l i'm tho 4,