The Opelousas courier., 1888-06-30

hluO VhlCo OO ouAA"h "Ao"A"
of $3.50 in nine years, and acquire a home free from all
Suppose instead of borrowing from the Association, in the
manner described, lie borrows the net amount received on
his loan from d capitalist
for 8 years at 8 per cent per annum. In y years he
would have to pay for interest alone 1850
making his tota, outlav, principal and interest. .se5so
while for the same result, in the same time, he would
have paid to the Association in the manner above
--
or a difference in favor of borrowing from the Associa-
ton
If, therefore, he borrows from the Association, and pays
to cancel his nominal loan of $4,000, for which he took
a a15 has actually paid over and above the net he re-: low
he has then paid as interest the annual sum of $685. or a
fraction over S per cent per amman on the net he received,
($l50Ol to the Association, instead of 3 per cent to a CAPT
talist.
Suppose instead of acquiring q home, by paying as above
the sum of $225O, he chooses to rent a house at say 500 per
month. To nine years he pays as rent the sum of $2l6O. In
other words, by paying 800 more, in nine years than his
rent would be for the same length of time, he acquires a
valuable property.
The secret of the success of associations of this nature is
that the stakeholder receives the revenues Of the property
instead of the landlord. The dividends being placed to the
credit of the stakeholder, assist him in paying up his stock;
and consequently lessen the number of the annual payments
necessary to pay it up in full.
To those who NAV not desire to borrow, the stock offers a
thoroughly safe and lucrative investment, better than any
simple interest barring note or bond. With the expelssSnce
obtained by other associations, the stakeholder will not
probably have paid more than 60 per cent of the face of his
stock lin weekly amq1nts as above explained before it will
matnre, and be PAYABLE to him face value dollar for dollar.
The money offered for sale is accumulated by the weekly
payments of each shareholder on his shares. If for instance
there are 1000 shares placed in a community, naturally each
share will be paid weekly at the rate of Is cts pes week per
share, which would make a total income IF $3.50 weekly or
$1,000 per month. This money is then offered for sale to the
highest bidder of the stockholders. The shares being S2OO
each, a person owning one share would be entitled to borrow
at once 5000. A person owning five shares would borrow
five times that much, and so on.
The amount loaned is of course less the premium. The
premium thus deducted from the loan remains IN the Treas
ury, and is placed to the credit of all the shares in the Asso-
misunderstanding those also of the person who borrowed
the money. These premiums consequently cause the shares
to mature that much sooner. The Secretary is the only per-
son in the Association who is entitled to a salary conse-
readily seen that as a Savings Bank it offers all security
that could be desired, and for a person who does not want
to borrow it pays a handsome dividend. 4 az
Members should bear in mind that they are never obliged
to repay tho face of the note in full, as the installments paid
by them and the dividends on theiiy stock are usually sufi-
Gent of themselves to cancel their obligation in about eight
years, or when the stock coaches par.
To the mechanic, laborer, salesman, clerk and tradesman,
and all persons of small means, anxious to relieve them-
selves of tho burden of rent, this Association offers the east
est aud chepest mode by which they can, in a few years, be
come independent of the landlord and tenant of their own
houses, at q cost per anndm out httte an excess OF What they ar
nop paying for rent. @~
whenever there is money on hand, notice is given to al
members that on a stated date there will be MONEY 1t
LOAN. At the appointed time, the meeting is called TO or
der by one of the officers of the Association, who states tina
money will now be assigned to the stakeholder Offering the
highest voluntary premium, and that he can borrow on ON
1929
upon. z
Bids are then called for from members who desire loans
and the one making the highest bid, has the loan assignee
to him, provided he is not in arrears in the payment OF III
dues.
The property submitted by the borrower is referred to th
investigating committee for examination.
In case the committee reports against accepting the pro
perty offered, the applicant can within thirty days from
time of bidding, offer other property which will DC examin
ed, and, should none of it prove acceptable, the TRANSACTION
is cancelled and the bidder must pay thirty days interest," a
6 per cent. per annum, on the par value of the shares bid upool
Sh0n!d the nrOnerty offered be satisfactory to the commit
tee, they report favorabIy on same to the Board OF Director
who decide whether the property will be accepted. ~ th
Board accepts the property the applicant then hands titles
it to the Attorney for examination, at the same time givln
the Attorney such facts in regard to the property as will al
him in the examination. Upon aTFssEorable report in regar
to title from the Attorney, the President directs the Notar
to draw ace of sale conveying property to the Association fe
cash. -,
Then in due time the Notary draws an act conveying til
property from Association to the stakeholder for the pa
value Of the number of shares offered, he giving his note Il
the amount. He pays interest at the rate of 6 per cent. pc
annnm on the note, and continues paying his lnstailmen'
weekly on his stock. When the stock is worth par it is SUI
rendered to the Association to be cancelled. and the not
given is surrendered to the stakeholder. ana Gu
property is released from the lien and privilege held by Gu
Association. s%HA& ##
a house of sufficient value built upon it, Where vacant 10
are to be bought after the Attorney has pronounced ut'
valid. the Notary draws an act. conveying lots to the Asst
citation. The bidder then selects any builder that is sati
factory to the Association, and who can give bona fof iaiu
lful performance Of his contract. The builder submits to u
president plan and specifications of the building to be erec
ed and also the name of the bondsmen he offers. The pls
and specifications are examined by an expert OF the Ass
citation who decides whether they are correctly drawn
not to insure q satisfactory job. Upon favorable report
expert, and by agreement Of ali parties interested, the Pre-
lident signs contract with builder to erect house, ana up
completion of contract, conveys property tothe stockhoia
for whom the lot was bought, who pays as stated above
The borrower must of course have the property insured
Parties desiring to take stock or wishing to obtain furth
information should apply to the Secretary or TO any memh
Inf the BOARD of Directors. 4