Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1886-08-07
IUCsL BUILDING AssOCIATIOSs.


LOCsL BUILDING ASSOCIATIONS.
The Good Accomplished by These Organiza-
uons Daring the Past Twenty Years.
Lancaster county can boast OF her building
associations All are in good condition
financially. The directors have no trouble
to dispose of all the surplus money at a good
premium, and it follows that the series ma
ture in good time, and the investors receive
a handsome sum on the shares of stock held
by them.
The first attempt at forming building as
sociation in this city was made by members
of st Joseph's Catholic church. It was not
on a big scale, however, and after the matur-
ity of few series it went out of existence.
The Workingmen's Building association
was formed a few years after St Joseph's
and Il, too, disbanded after two series had
matured. The Lancaster association WAS
formed from the stockholders of the Work
ingmeu's, but 1t closed out before the matur-
ity of the first series, and the stockholders
went into the Union Building and Loan asso-
citation, which is still in existence, and is one
of the most prosperous in the city.
THE OLDEST IN THE CITY.
The oldest in the city is the American Me-
chanics Building and Loan association. 1t
was instituted on December II, 1869, under
the provisions of general act of assembly
passed April i, 1859, and met with success
from the start.
The Union was the next one instituted. 1t
dates from June %, 1875, and was followed
| by the Peoples, which was incorporated the
| following day. The franklin was insti-
| tuted on March Is, 1879, since which time no
| new building associations were formed until
| April of this year, when the West End was
| brought into existence. Although babe as
| compared with some of the others, 1T bids
fair 10 be one of the strongest in the city.
These building associations have been us g.
| ful aud valuable institutions to the co mmu'
| nifty. Years OF successful experience have
| rendered it unnecessary to prove the useful-
| ness of the building association as a savings
| institution, an aid to the workingmau in
| securing q home of his own. Thousands OF
| homes in Pennsylvania owe their existence
| to its beneticent operation many man IN
| this city has there saved in small amounts
| money that would have been unproiitably
spent, thus Rccumulating sufficient to buy a
| house or go into business Tor himself. All
| members know such cases. But the build
| ing association has done its work so silently
| attended so strictly to its own business
| that the public outside are almost unacquant-
ed with its nature and operations.
ELEVEN YEARS TO MATURE.
Ordinarily it takes about eleven years for {
series of stock to mature. That is, parties
pay in Il per month for that length of tim,
and draw out 500 for each share. If per
son desires TO borrow money he can get 500
from the association for each share OF stock
owned by him by giving security. Say h'
has 500 of his own and desires to buy
$1,000 house, the association will lend him
the $500 taking mortgage on the house a
security. He must have four shares OF stocl
to borrow that much money. He bids 70
the same at the monthly meeting of the di
rectors and pays about l2l9 cents premium
| that being about the average.
He then pays to the association 81 month";
dues, - interest and 81 premium, making
total of - per month. lie pays that muc
} until the stock natures when the mortgag
on his house is cancelled, and he has hom
of his own. A great advantage he possesse
is that as long as he pays his monthly due
) | and interest his property cannot be di'
| turbed. During all this time he has no rer
: to pay, and he is practically paying each yea
4 | permanently on his house the sum it wopl
> cost him to live in the house, If anotht
4 | owned ii.
/ All classes of our community, from pr
!, fessional men to laborers, are members
| the building associations. The rich men /
o vest in shares because it pays them to do $
u They make on their investment greater !
d | terest than If it were in six per cent gud
"a | ment or mortgage. All holders OF stock a.
1t | not borrowers In nearly all the association
Or the number of shares OF stock issued ls In
is tied. Those who want to borrow money al
a | allowed to subscribe for fifty shares no
v borrowers are allowed only twenty shares.
d | In the Union and Peoples association Il
is | stock is so arranged that a series runs o
every six months. The Union has issued
"a series. The first and second have mature
n aud henCeforth every six months series W
AZ be paid oil. Whether the parties want Z
"a money or not they must take 1t when {
oT stock natures. In nearly all the associatio
500 shares is the greatest number that W
10 be issued in one SERIES 1t rarely reach
al this figure, howev or.
of ADVANTAGES.
y Stockholders who do not wish to borr'
ld | have the advantage OF a tair rate OF inter-
10 | on small savings that could not be made p
si- | puctiye elsewhere their money can
er withdrawn on short notice if desired ant
pS transfer TO building association stock is &c
aS1 collateral for at least the face OF the book,
nd | case the money is needed Immediately.
According to the bylaws OF the assoc
mr. tions one-half the money in the treasury
subject of notices of withdrawal, in order
.he priority. When a stock holder wishes to u
.he | out his money before his stock natures,
a gives 80 days notice in writing to the diI
liet tors at stated meeting, and receives
,er money at the next meeting, II there DO su
ted | cient In the treasury-it not, he may u
eld | onehalt on account and the REMAINDER
her soon as received. portion OF the pronts
md | withdrawn stock is retained Dy the asso
ali | tions To cover risks-this discount being
I'm proportion as the stock approaches
fell | turity. Some stockholders avail themsei
her | OF this privilege by periodical withdrav
INK | to meet payments oil interest,", etc., ana YAK
md | new stock to retain the advantages OF the
sociation as "A savings institution.
lin The secretaries of the associations nov
.yas | existence are !: American Mechanics, j
and Is, Rehm Franklin, j. ID. Pyott Union
oke II, Ball Peoples, A. y. Nillee; West