The Iola register., 1885-02-20

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F.M. ADAMS, Aucr1oNEER
Satisfaction guaranteed or no pay
Address, lola, Kansas.
THE BEST!
. Any woman or child can use it
the Buckeye pump, at Beck's.
THE BUILDING AND LOAN ASSOCIATION
Considerable local matter Is crowded
out of this issue to make room for tht
appended report of the committee ap
pointed to present an illustration of th,
practical workings of Building and
Loan Association. We gladly yielG
the space, however, as we are con
vinced that it could not be occupied BY
anything that would be of any greater
advantage to the citizens of lola and o.
Allen county generally. Our county
and our town are just getting ready
now to 60 ahead, and such an assOcia.
ton as this, if heartily entered into by
farmers as well as by the town resi-.
dents, will contribute wonderfully to
that progress. Read this report care
fully, tell your neighbOr about it, then
attend the meeting at the Court House
next Monday evening, prepared to tie.
come charter member.
THE REPORT.
Your committee appointed to inves-
tigate and report on the two different
plans for the establishment of Build
ing and Loan Association respectfully
beg leave to report: That after dill
gent examination, we are unanimously
of the opinion that the scheme whereby
the borrower shall receive 500 in full
on obtaining the loan, and then pay
in the premium bid in equal 10th
parts, with interest at per cent. per
annum in monthly payments is the
more desirable plan. Under the
workings of this plan q borrower of
one share would pay in ten years as
follows:
Dues 10 yrs. or 100 mo-, 81 per mo. $50 co
Interest at 9 per cent. on 800 (amount
loaneO 81 per mo. for Il mo. ........... 120 90
Premium-assuming 30 per cent. would
equal $50 per share, which divided into
l2O parts or months, equals soc per mo.
Hence in 10 yrs: would pay in dues. inter- -
est ana premium .................... .$30o, ,OO
AT this time his loan would be paid in
full, he would surrender his stock and
receive an acquitance of his mortgage
and note and square with the AssOcia-
ton, and it will be obser we'd that the
borrower would pay the sum of $3.50
each month for 10 years to accomplish
this.
Now on the other hand let us assume
he borrows of lender $500 and agrees
to pay s per cent. per annunl therefor
and let us carry out the plan for 10
years and see the outcome, and it will
result as follows:
Interest on $500 for / yr. at per cent.
would be SIG, and for 10 yrs. s........... .sIGO 90
Now he owes the principal. ................ 200 90
Total to pay loan and interest ..... 800 90
Thus We see an advantage of $50 in
favor of association, even conceding it
to run to the longest possible time, 10
years (when in fact s to years is the
usual time of maturity.)
Now let US see how it will affect the
tenant who desires to relieve himself
of the onerous rental everywhere exac-
ted. We will assume that he has suf-
ficient means to purchase lot or loca-
ton for house (which is requisite)
and desires to put up a tenement that,
when flushed, will cost him S40O. He
buys his lot; takes two shares and OBJ
tains loan in association at 80 per cent.
premium, and runs the full ten years {;
let us see how he stands.
Ills dues on wo shares would be 81 each
R'fs interest on two shares would be 81
each per month. ....... ............... W
His premium on two shares would be SOC
eisch per month OBSERVATION-DISCLOSURES. W
Total per month observation-disclosures 90
This would equal $50 per year, or in
ten years $500. And then he owns
his own home, and, as will be observ-
ed, has not paid an ordinary rent, even
counting (Which is fair) the interest
on cost of lot, insurance and taxes.
For the same house suppose he bor-
rows S400 of the capitalist and agrees
to pay 8 per cent. interest (Which is q
low rate on farm:property) the interest
for one year would be $32; for ten
years $3.50, and to this add principal,
S400, gives S72O as his outlay, with
same taxes, insurance and investment
in lot.
Therefore we say, to the most casual
observer it must be apparent that the
advantage to the poor man who de-
sires to obtain home is great.
Now the same rule prevails should
a party have S1OO or $500 and desire
to purchase home already built that
is worth $500 to $500. He can take out
S4O0 or $500 and carry along for the
| time Association runs, at an ordi-
nary rental and in the end own the
home in fee; whereas, otherwise he
would pay out the rental and in the
end have nothing.
| Then, too, all the Improvements he
makes to his home are for his own ben
eft every nail he drives is for himself
every tree he gets value for. Should he
desire, after few years, to leave he can
sell the property, assign his stock to
the purchaser, and thus not only have
had his rent free, but have profit while
he occupied it.
In addition to all that, it builds up and
beauties our city. Nothing so much
adds to the beauty and wealth of a city
as every man owning his own home
Then, too, all are interested in the mu-
nicipal government, and taxes will be
kept at their minimum, and the usual
tumble-down, rickety, old, rented tene.
ments will disappear, and tidy, comfort
able, and beautiful homes Will take theil
places.
We think it cOmmends itself to the
thoughtful consideration Of all the Ia