Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-04-23

the borrowers. In the beginning all are
lenders until several thousand dollars
are rsised, then the ones willing to p.y
the most for the use Of the money borrow
Inc higher the premiums are the better
for the members who merely take shares
as an investment, as they virtually obtain
from to 10 per cent. for their money.
This high rate Of interest Is not such q
hardship for the borrower as appears
st first glance. 1t is about the same pro-
portion as rentals are In desirable locsli-
ties, and as the borrower obtains the
money without having any security, and
In Few years becomes the owner of the
property, 1t is decidedly to his advantage
The associations have a clause providing
for the withdrawal OF members st any
time. All Of the money paid in is re-
turned, and after the end Of the third
year from 20 to 60 per cent. OF the profits
Is paid. This enables member who be-
comes financially embarrassed to obtain
money, and not forfeit what he has paid
In, as IN the case IN the tontine insurance
plsp. A borrower, however. is hued
when he SLOWS his payment Cf interest
on mortgage to become over
one month in arrears. When he is
three months behind, he is liable to have
the mortgage foreclosed, bus even then
what he Loses would not exceed the rent
that he would have paid during the same
interval. Several instances IN this city
have occurred where houses have been
built from loans from these associations,
and before they were occupied, rentals
have been offered that exceed the interest
on the mortgages. They were excepted
and in few wears the houses Will have
paid for themselves besides leaving
margin fer the shrewd borrower.
Loans on property are usually made
with one-third equity. That is, the lend
er will advance only tWo-thirds of the
value. A man with moderate income
VIII wait long time before he saves up
The amount necessary to buy or build with
Then his property will be saddled with
mortgage that will be burden year after
year without any prospect of release.
Even suppose that he had kind friend
VINO would lend him the amount ne
wanted for ten years without de-
handing the equity, the advantage
of borrowing from the association
is clearly shown. II the friend were to
lend him $3.50 at per cent. interest,
his interest would amount to 1927 so per
/ BSSAt "a SA-'o AZ hOh JOo1S1 dAu uc WUulu
Still owe the amount borrowed. II he
were to borrow the same smoupt from the
association, and pay premium of $50
per share, ne would psy the same amount
and would De under no obligation to his
friend. A loan from an association at r
premium Of $50 per share costs Just 5
per cent. interest, provided that the ss-
sociation winds up in ten years. II it
closes In less time the amount will be
proportionately decreased.
THE BEST INVESTMENT OF ALL.
AS an investment building association
is better than bank They givea higher
interest, and better security. For in
stance, II g man saving 81 week takes
four shares in an Association, he will get
$1,000 in the end. He will have paid ten
years assessments on four shares, or $500,
snd his net gain will be $3.50. II he PAYS
$500 into bank, he gets interest st per
cent amounting to S47.35, ard at the
end of his ten years ne has 1867 to his
credit, Against $1,000 in the association, a
balance of 1882 IS in favor Ct the latte-
He is secured by first mortgage on real
estate, and there Is no way that his capital
Can be wiped out. The of ;ers of the
association are under bonds that secure
the safety of the funds in their charge
These funds are not large, IS the loans
are sold as fast as sufficient amounts &C.
cumulate. The loans are made on prop
erty which is found to have clear title
| when searched by the ass 0cistion's attor-
ney. Appraisers are employed to place
value on property before 1t is purchased,
snd when buildings are to be put up full
plans and estimates must be submitted.
| The New York Teachers Building and
Loan Association is the latest to enter
this field. It was organized on March 90,
with Elijah D. Rowland, principal of
Grammar School No. 6S as president, and
pron inent teachers in the public schools
filling the other offices. AS there are
1000 public and private tutors in the city,
and they are always employed no matter
how dull trades or business may be the
association should be strong in members
and substantial backing. In their
prosp, ctus, they state that their title is
in some respects q misnomer, as they Isre
really a cooperative savings fund and
loan association. They propose to give
the members an opportunity to invest
their savings at 10 to IL per cent. interest
or to borrow at 6 per cent. plus bonus.
II each of the 1000 teachers pays $40
month rent, they put into the pockets of
landl 1rds 100000 year, and If this
money could be put into homes instead,
each one might soon own home.
The promoters Of these associations
claim that they are better than insurance
policies, because their benefits are en-
joyed in life; better than banks, because
| they cannot fail, and better than any
other investment because they are safer
and pay better profits. They encourage
the acquisition OF individual homes and
tend to increase the prosperity of the
masses. They induce saving, by giving
workingmep, clerks, statesmen, etc, an
object to workfor. AS g system OF CO.
operation, they are entirely in accord
with American ideas, and If carried out
as they are capable Of being carried, they
should do much to settle labor troubles,
and put an end to communistic and So
| cialistic doctrines.
CLOTH MADE OF GLASS.