Savannah morning news. [volume] (Savannah) 1868-1887, 1885-06-23
FOR IMPROVING THE CITY
THE REAL ESTATE AND I'M
PROVEMENT COMPANY.

THE REAL ESTATE AND I'M
PROVEMENT COMPANY.
An Organization Effected and stock
Already Taken-The Capital $3.50 900
in shares of S5O-The Plan of Opera
tion-The Election of officers and
Opening OF subscription Books.
The Chatham Real Estate and Improve
ment Company was organized last night.
The called meeting at Metropolitan Hall
was largely attended, and a lively interest
WAS manifested. The committee APP
pointed at the last meeting to draw up
constitution and bylaws reported pa
per which was adopted without amend
ment.
The organization IS TO be known as the
Chatham Real Estate and Improvement
Company. The capital stock is Sl5O,OOO
with the privilege Of Increasing 10 5000, 900
if desired. The shares will be $50 each,
uavable monthly, s. per month. No
member can hold more than 300 shares
Seven per cent. interest viii be allowed
on advance payments of six months or
more Any member failing to pay
promptly will be fined 10 per cent. on his
stock. Arrears for three months
forfeits the stock, but if it
has been paid 10 months the
excess of purchase after paying fines and
expenses is to be refunded TO the first
owner Transfers OF stock are permissi-
Bile under certain provisions. The affairs
are to be managed by a president and
board of directors. The secretary, tTea-
surer and attorney will be salaried Otii-
GERS. The funds derived from the pay
ment Of 81 a month on each share and IN
terest on loans are to be invested by the
directors in the purchase of real estate.
Any part Of the property can be sold or
rented.
Mr.. NJ. j. Solomons, who was elected
President, explained to the meeting the
plan. thus: Suppose A owns ten shares Of
stock. He pays on that so a month for
fifty months. II he wishes to borrow, the
company will lend him 5000 on each share
less 10 per cent. He would receive $500.
Interest is charged, however, on $4,000,
which at z per cent. is $l40 year.
The payments being monthly for 10
wears the average would be years, and
the interest would be 800. This IS added
to $4,000. making 81, 100, which he is TO
paw in 100 months or S22 30 month. The
$40 month on his shares is also to be
paid for years, but on this he receives a
dividend.
Ii the money is invested in a 81 800 house
he pays 81, 700 for it and for the use Of
il fo- ten years. This is equivalent to 800
a year, OF per cent. for the use Of the
money. A landlord would charge 10 per
cent. rent. amounting to $3.50 year. At
the end OF ten years the tenant would
have paid 81, 800 for the use Of the house,
and would not be any nearer owning than
when he first moved in.
The same amOunt-$1, S00-bOrrOwed
from a bank costs Sl26 a year. At the end
of ten years the bank would receive
S3,060-$360 more than he pays to the real
estate company.
The plan met the approval Of the most
Of those who were present, and a sub
scriptiOn list was opened. About 1000
shares, or One-third of the capital stock,
was subscribed.
The following were then elected direc-
tors: G. II. Dorset, Lee Roy Myers, j. II.
Estill, A. X. LawtOn, Jr., c. s. COnnerat,
II. p. Smart, \. F. Thompson, George 4.
Byrnes, w. n. Holt, William Kehoe.
Subscription books will be opened at
the offices Of the MORNING NRws, the
Times, and at the offices of each of the
directors. A charter will be applied for
at once.
The first annual report of a similar
company at Atlanta was read. 1t stated
that the company one year from its or
ganization owned property valued at $77,-
600, an excess Of $4,000 over the pur-
chasing price. The money paid in for
shares bears interest at good rate, and
if a stakeholder does not want 10 borrow
he gets a good investment for his money.
The plan was generally considered to
be quite an improvement on the building
and loan associations, from which ii dit
fers materially. The stock taken last
night was in small blocks from to %
shares, averaging about 10.