Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-04-23
ALL CAN BE LANDLORDS.
Remarkable Boom Of the Building and
Loan Associations = Interesting
Particulars of Their Workings.
How q Man Dan Own His Home without
Paying Out More than the Usual Rental.
The Plan Explained in Detail.
New York Mail and Express,

1
"Why do you not build house instead
of paying rent year after year," q real
estate dealer asked a reporter for theMai
and Express to-day.
"Build house! Why, 1t takes all
earn to pay the rent and other expenses Of
housekeeping"
"You can build house with wins. you
are now paying for rent"
"But where will get the cspital?"
] "Join building and loan association
| and take out 5 loan"
IL have no security to Offer for the
losn."
"rhe property you buy will serve IS
security"
what does it COS. to join the assccis.
tion?"
"rhe initiation fee is 50 cents ard thu
weekly dues Ale % cents on each SHARE
that you own. The nominal value o,
these shares is $3.50 and you must lake al
least two shares"
"D0 pay cash for these shares2"
"Not st all. TIE certificates are issued
to you, and the weekly dues are tie pay
ments that you make On the Shares"
"rhen how do obtain lohr?"
"The association puts up the money at
auction, and IL is awarded to the member
| that offers the best premium. 1t is put
up in shares Of $3.50 each, and the high
est bidder may take as many shares as ne
DESIRES"
"Suppose 1 wanted to buy q house
worth S2400. how should go about ii?"
"You would need to take ten shares to
o9taiI S2400, and If the premium bid WAS
$50 you would take out two additional
snhres to cover the premium; making
twelve shares or $4,000. OF this amount
| 5000 would be retained by the association
for premiums, and S2400 would be paid
for the property. You would be required
| to pay i've per cent. interest on the $4,000
| or $3.50 year; and your dues would be
So q week on the twelve shares, or Sl56 q
year, making altogether 1906 year, or
about what your rent now amounts to-"
| "Would be given q title to the prop,
erty2"
"Certainly, the deed would be made
out in your nams. The association
| would lake mortgage to secure it
against loss, but in from seven to eigh,
years the dues, interest and loans re-
ceived by the association will make the
shares fully paid up and the mortgage
will be cancelled, and you will own your
properly ire and clear"
HOW TO BUILD AT ONCE.
"Suppose preferred building house
to buying one already up?"
"The same plan il followed except thst
| the payments are msde to the builder as
his work progresses, and fiosl payment
is held until the house is completely ia
ished."
The shove conversation induced the re-
porter to irqqire into the subject, now
| attracting so much attention, OF cooper
a,ive building associations. He found
| thst they originated in England about
cessful that they have spread all over the
associations, with 500 900 members aud
assets aggregating 100000. 900. Aus
tralia has associations with capital OF st
least s25, 100000. Philadelphia WAS the
first city in this country to adopt the CO.
operative building plan, and the miles of
streets lined with neat frame cottages that
form the outskirts Of the city are the re-
suit. 1t is estimated that over $1,000
houses are owned by worki1gmsn IN
Philadelphia, and that 600 building and
loan associations are in existence there
to-day. From Philadelphia those asso-
Citations have spread to every state in the
Union. They are very popular In the
west. Chicsgo and Buffalo have each $50
associations, Pittsburg has $50, Cincin-
natl has zoe, Rochester has eighty, and
nearly every small town in the Vicinity of
| the large cities has from one to dozen
of these associations. The total number
| In the United States is estimated at 5000,
with s membership of 10000 and an
aggregate capital Ct $3.50. 0O0,O00
The first organization in this vicinity
! was that Of the South Brooklyn Associa-
ton in April, 1886. l. has now nearly
800, 900 loaned to its members, and its
shares command premium of SIS each.
There are about half dozen associations
| in Brooklyn and fifteen in this city The
first OF these was the Harlem Association,
which is one of the most prosperous in
the country. 1t was organized in Febru-
sry, 1887, and in twenty weeks the limit
of mbership-600-Wss reached, and
5000 shares of stock were taken up. It
now has S9I, 900 loaned on bond and
mortgage at per cent. and has paid q
profit in premiums and interest Of over
SIS, 600. These associations are all
formed On the same general plan.
They. are incorporated under the law
Of 1851, end are free from
the corporation tax clause apply
ing to savings bank. The member
ship Is limited to 600, and member can
take any number of shares from two to
sixty. The paid up value of each share is
$3.50, and is paid in by a subscription Of
25 cents per share weekly. When s sum
sufficient to warrant loan has been re-
ceived, meeting is called and the presi-
dent offers one share of $3.50 to the highest
bidder. The member willing to psy the
highest premium gets the share and as
many more at the same rate as he de-
sires The premium that is bid is usu,l
ly added to the amount needed to pur-
chase the house. Thus 8 man wishing to
build hous. costing $4,000 in cash, and
bidding premium of $50 per share,
would require sixteen shares or $4,000,
for which he would give mort
gage on the property. He would
not be required to pay any
cash down, but would pay his weekly
subscription Of Is cents share on the
sixteen shares, or 81 q week, making
sos per year. He would also pay per
49, n