The Opelousas courier. [volume] (Opelousas, La.) 1852-1910, 1888-02-25

A Building Association.

A Building Association.
We learn that project is on foot to organ
ize Building Association in Opelousas stint
lar t0 those now i'll existence at New Iberia,
Lake Charles, and in many other towns and
pondent of the New Iberia Enterprise writes
an interesting letter concerning the objects
and plan of operations of such organizations,
Gom which We make the following extracts:
The objects are two: First, to provide Its
members with safe and profitable Investment
for even the smallest savings; and, second t"
furnish chem with the means OF borrowin:
money to purchase and imprtEe houses ard
lots.
The plan is not new one; it has been lnh2
and thoroughly tested. In England more tbhn
one hundred million dollars are Invested III
these associations, and in the city of Phila'e!-
phia more than seventy-fve million. There
are over GO, 900 people in Hamilton county
Ohio, interested in building associations, pay
ing in neatly 100000 week While on !.
visit to st. Louis recently, Learned that manE
new companies have been formed within the
last two years, and it is the exception to find II
business man who is not q stockholder III these
associations.
Th2re can hardly exist doubt in the mind
OF any one who has given this subject even
partial consideration, but that if the Dement'S
to be derived from membership in Building
associations were even half understood, the
membership would include nine-tenths OF all
the workingmen Of our flourishing city-Ne"
Iberia.
The benefits that membership conferes are
numerous, far-reaching and permanent intheir
character. They encourage habits OF ecohn-
nv industry and frugality among the people
t61Ehom these things are so essential lhg
enable you to accumulate fund to sustain
you in old age, or provide you with home at
once and, again this is the only way in]which
cJna II l.a Drntitd bfV invested, WIN
good officers aud directOrsthere Is no ques-
ton about the security, as loans are only made
on real estate ana the borrower does not han-
die the money. The profit depends upon how
long it requires the "series" to mature. sup
pose it natures in eight years, which 4 thinlE
possible under favorable conditions, thlsJ VIII
make more than twenty per cent on your stock
This applies as we'll to the borrower asothe
non- borrower.
New word to the borrower: I often hear
the question asked, how can share hotdes
pay premium of Is to 35 per cent for the use
of moaey to build The borrowing shareholder
remaining in the association until the series
in which he holds shares natures, he HefeF
| pays the premium offered. He does however,
paw per cent on the gross amount ottePCsl.
To illustrate Mr.. A borrows on fve shares of
stock, at 5000 per share gross, would be Sl0oo,
! for which he bids 80 per cent premium or dis
cots. e account would stand thus:
| Five shares at 5000. $1,000
| Less $50 on each $100-- 3Uo
| Cash received by borrower. ----.$ 700
| Now, has not paid this premium: for the
reason that 1t was not required of him; but
he does agree to pay his monthly or weekly
installments on his iye shares of stock, for
| convenience we will sly $5 per month and q
per cent per annum ofySl000, which is $5 per
month. Any further thyments he may make
goes to paying off the !oan and not interest
Mr.. AS account-not Laving paid the premium
offered, it is evident that he must be charged
with it on the DR.. side of the ledger, and the
entry of the above account should be- Dr.. 10
Cash 700; premium, s300-~i000 The rCr. side
ed at stated periods, and when these, with the
earnings or dividends foot up $1,000 the account
/ is closed and you have the $500 offered as Pre-
MUM. So you see the borrower pays interest
on the loan and borrowers and non borrowers
pay fines, transfers, entrance fees and forfeit
| ures of stock. all of which payments being
| paid in cash and declared as dividends, assist
the borrower to pay off his loan.o Hence VIC
| find that if Mr.. A remains in this association
and pays his dues on stock and interest regi-
Iarly for period of about eight years, we Y III
readily see his payments would be thus:
IS per month on five shares for ninety. ~,
SIX months. i7'
6 per cent on $1,000, Or $5 per month for i.
ninety-six months hs-------..--.------ fSo
Total paid in. $50
for the present use of $500--a little less than
! al per cent straight.
Borrow this same 800 from capitalist II,
per cent and we find that at the end of eight
/ years we have to pay him the prineipal--$ zoo
Interest at per cent for eight years $5e 80
per annum. ffe
Total. SIlfs
/ Difference in favor os our association, at 81
/ &ISS
Now, then, my friends, what has this $i0t
earned us during the period ef eight years
AS speculation : o have purchased materla
aud put up building that, under the ordna
ry credit system, has increased 90 per cent by
paying cash. T3en we have rented this house
J for ninCty-slx months at So per month, henc.
we find our real property and it's earnings !;
| worth as follows:
Building $500, with 20 p. c. added Sd
96 months rent at So per month --.--.-- 10
Total l60
For which We have paid the association 96
clear gain of-------....---.$ 81
Our plan is simple, the theory is financial.
sound and experience has demonstrated th
material advantage which may be derives
from this cooperative society. Thus ever.
member is both stoekholder and depositor. an
! contributes to the management, to the capita
= stock and to the profits, while enjoying th
= use of the associations money. s
We offer the opportunity to make sna
:. beginnings in thrift-eyery stockholder share
! equally in the profits of the association pr
rata, according to the number of share
owned by him.
I We offer every opportunity to those most
l. need of homes. Capitalists cannot monopoi2
the stock nor divert the funds from the
9 legitimate channel. All possible safeguard
q are thrown around you; the control is directl
! in your own hands, You are not called upo
. to help any one by giving them part of you
d savings, but asked simply to help yourself
7 joining the association, and in thus helpih
. yourself you are also beneftting your fellow
J men, because it is by united action that nj
y tual benefits are derived
y The New Iberia Enterprise of the 10th sa,
., in it's local column:
Q AS the practical workings of the Buitdt'a'
7 Association are becoming better understoe
{, by the members and the public, the intere
. in it increases, as was evidenced by the nuT
e Der of bidders present at the sale of none
0, last Wednesday. The loans were secure
respectively, by: Mrs. Nichols $1,000 at 30 P
,s cent premium Mr.. Jos. Judice, $1,000 at 3
# Mr. j. w. Tayl ylor, $500 at 80; Mr.. C. E. Re
lr nolds, 5000 at % and DR.. A. G. Gayle-a sc
1t ond loaa-$200 at 80 per cent-making tot
n loans on this occasion, So, 600.
u It reads like old times to hear of Henry
% Warmoth being nominated as Republican c.
p elidate for Governor of Louisiana; tue a