Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-12-13
MISUNDERSTANDING PLAN
It's Popular Way of Saving in the
West-The Shareholders Run
A Savings Bank of Their Own and do q Regular
Daily Business-FigUres from
Their Report.

In writing to thank the Star for the
building and loan association news it fur
nishes, ''P. H. Mob asks some in
formation about what is known as the
Dayton plan. ''The-Star has given our
association so many valuable points, -
writes this correspondent, "that we have
been able to correct some errors that we
committed through ignorance and in
| experience, and have now a sys-
TEN which even Mir. Cockey or
Mr.. Hardcastle would hardly be
able to criticise. l have seen the Dayton
plan mentioned occasionally, and make
bold TO ask the Star something about its
workings. -
What is called the Dayton plan of
| building associations was first introduced
fifteen years ago by the organization of
the Mutual Home and Savings Associa-
ton of Dayton, Ohio, from which city
the plan took its name. Under this plan
greet progress has been made in the
last few years, and some of the most
popular aad prosperous, and perhaps the
largest building associations in the west
have been built up, and ut the same time
ing business daily as other banks They
are perfectly adapted fer an everyday
business, for receiving dues, making
loans, etc, ana in 4 few years they be-
come "the bank of any city or town IN
which they are organized. -
IN many of the thriving cities of the
West the Dayton plan is particularly pop
lar, but there are many new features in
grated III il that would not be practical
bic in the serial associations OF the East
under ii al classes or serials are done
away with, and il issues book or running
stock Ut any time without paying back
dues. No initiation fees are charged. It
declares dividend ni-annually to all
members, and the same is credited on
their books. Ali members books are
balanced yearly and show the
depositor how much he has
on deposit, and to the Dor
rover just what amount is paid on his
loan. \ member can withdraw part Of
hisd eposit without disturbing his shares
of stock. The depOstOr and borrower
pay the same dues (25 cents) on each 500
of stock they may subscribe for. This
brings the dues TO the very lowest point
and within the reach of the man with
very small means. On q loan of $500 he
Is only COiIiptllCu ~ pay % per htth VI
Sl0i per year. At the end of the year his
premium and interest are deducted from
the above amount and the balance cred
tied on his loan, and this is continued
from year to year until his loan is paid off
A prominent feature, and one that has
made the plan popular, is the issuing of
paid up stock. a person can at any time
deposit $1,000 or any sum of equal hun
dreds, and the association issues him a
certificate of paid-up stock on which the
association pays him q cash dividend
semi-annually.
No attention is paid to the account of a
depositOr; he can pay regularly or irreg
ularly, or pay ahead; and if a member
fails to make deposit for six months he
is not subject to any fines, and yet he
would get dividend on the amount he
has on deposit.
Applicants for loans do not subscribe
for stock until the day the loan is made,
and from that time they commence to
pay dues.
The borrower is fined, as he is debtor
of the association, to make him reason
ably prompt. Under the Dayton plan
the association does not become loser by
the reason of q borrower becoming delin-
quent, for he always pays interest on the
balance he may owe on his loan. Hence
the association can be rather len
lent with q borrower, especially
when under the circumstances over which
he has no control he becomes delinquent.
All bids for premium are uniform, made
so by custom only, as all moneys must be
auctioned of TO the highest bidder. This
is controlled by parties leaving their bids
with the secretary, who is present when
the money is sold and does the bidding for
the applicants.
The following figures from the last an
nual report OF the Mutual Home Associa-
ton of Dayton will be of interest: