St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-11-24
GODD THING FOR CAPITAL.
It Invites Dakota People to Swell It1
$780, 900 Capital Stock.
NOT A FAVORABLE VIEW
Is Taken Of 1t by the Inquisitiye and
Cautious BroOkinss
People.

BRoeKINGs, OAK, Nov. 23.-The Spc-
cial agent of another big building assoc
citation is working in this part of Da-
stitution is the small sum of S7,500,000
i'll shares of 500 each. 1t is one of the
numerous huge institutions Of the kind
now securing the Northwest for mem-
bership, and belongs to the class re-
ferred to by Judge Strong, of Pennsylya-
MIA, as agencies for obtaining uSuriOus
interest from the necessitouS and I'M
wary" Chief Justice Whelpley. of New
Jersey, said of this kind ''that they are
but organized societies of legalized
usurers. and that by their operation the
investments of needy members are alb
SOrbed by
THE USURY PAID
to those more able. The only advantage
secured is enabling borrowers to repay
a loan by monthly payments somewhat
within their means, In all ordinary
cases 1t is most expensive way OF Ob-
tanning loan, and when it is obtained
the borrower is utterly unable to tell
what rate of interest he is to pay. or
how soon his debt will be eXtinguiShed."
there are two lenders in the institution
to one borrower. and the time is unlm-
tied for which the monthly payments
are to continue. Said agent estimates
that it will take Seventy-One months for
the shares to reach par, but gives no
satisfactory basis for the estimate. Ac-
cording to the dues charged the series
ought to terminate in four or five years
at the longest in the usual course OF
such associations. They demand -
cents per hundred monthly, which is
just one-half more than the dues of the
BrookingS County Building and Loan
association. Besides, the fees for adj
mission into this concern are enormous
| and hot accounted for in any way. Their
plan of leaning funds is quite vague
and uncertain, and borrowers are re-
quired to turn in definite established
bonus every time, besides paying
GOOD RATE OF INTEREST
on the sum borrowed. They promise
you a loan in the course of six months
after you have made application. and
then upon security approved by them,
in amount not to exceed 50per cent of
its value. No leaving the matter to
competitive bids is allowed by them, as
required by our statute. You take the
money at their price whenever they are
ready to let you have it, and not sooner
nor otherwise.
Not oneof the directors of the scheme
is known in this part of the Northwest,
and probably never will be SO long as
their unwary members continue to con-
tribute
WHEN TIE HAT Is PASSED.
Their special agent, however, is we'll
known. and is always greatly astonlshed
to learn of local association supported
and kept up by the borrowers instead
of lenders. When he strikes town
the first men he goes to are the bankers
and moneyed men rather than poor men,
whom such institutions are supposed to
benefit. Steer clear of these mammoth
contribution schemes and organize u
local building association in your own
town or county if you wish to borrow
money on the instalment plan. The
institution at your home, run by your
self and fellow borrowers, may be made
blessing by getting the advantage Of
your own high rate of interest. But i'll
the hands of Shylocks it is fno use TOT
poor man. There are scores of such in
situations already organized in the
towns of Dakota. and might we'll be
more if the stock be held largely by
borrowers instead of lenders.