Evening capital journal. (Salem, Or.) 1888-1893, 1889-07-23
Apour puILDrNo SOCIETIES.
How They Work TO the Benefit Of Those
Wanting Homes.

Iney nave been III operation up
wards of half a century, and 50 far
as we are aware, no failure has been
recorded involving loss to share
holders. In England, Germany
and the United States tens of thou
sands of prudent working men have
procured homes of their own through
this agency, and in Philadelphia,
which is known as "the home Of
the working man." nearly one-half
of its dwelling houses have been
built by means of building societies.
In Cincinnati there are 10000 per-
sons who hold stock in such
associations; in the larger cities of
Minnesota the same useful enter
prise has taken deep hold; Roches-
ter, n. Y, is encouraging its extern
sive manufacturing industry by sim
liar means; and the same is true Of
half our larger cities. Late returns
give 5000 ftbese associations in the
United States. That the need for
such an agency exists IN this city is
apparent to reason, in view Of the
fact that efforts are being put forth
to develop and foster n varied man
ufacturing industry. Our citizens
may display their liberality by pay
ing generous subsidies to men to
start Va iiOus industrial enterprises,
but unless the conditions are favora-
BILE To the prosecution of such lines
Of business, success will not be
achieved In homes for the opera
tive class, cost of living, schools,
churches and the general require
ments of social life, western city
must compete with its eastern riv-
ais, or the best mechanical skill will
not be attracted. Higher wages
may compensate for some of these
advantages, but this added expense
would be ruinous to manufacturing
enterprise.
A brief explanation of the princi-
pies Of building society will show
how ii works to the benefit of its
members, by enabling the impecu-
neous to procure homes. Let us
suppose large iron industry started
In some new place and the labor of
II thousand workmen put in de-
mand. The proprietors would put
up rude boarding houses for their
accommodation, but married men
with families would want homes.
There are no cheap cottages they
can rent, and only few have the
means to build themselves dwelling
houses. In such an emergency
they could come together and ar
range plan for each to subscribe
certain portion of his wages, and
with the money thus pooled build n
number of dwelling houses monthly.
Those most urgent in their need for
II home would pay the largest
premium for first choice, while those
Others who could afford to wait
would have their share of the profit
of this outlay.
out of some such condition of
things arose the necessity for build
Ing society. In manufacturing
city the operative is dependent on
the capitalist for place to dwell in.
He has to put up with poor accom-
modations, his home is no home to
him, and the money he pays for
rent procures him no value. This
false state of things can be renedied
by association. Fifty or n hundred
persons needing homes, or requiring
means TO redeem their house prop
erty from encumbrance, can start n
building society with any proper
of capital stock, each taking
II certain number of shares, and pay
ing for the same In small monthly
installments. zone dollar n share
lfthere are 900 shares !
In the hands of stockholders, the |
monthly payments on the same will |
he $1,000. The amount of money |
ON hand is announced by the presi- |
dent when the dues are paid, and |
this is offered for loan. Then arises |
u competition To borrow, One mem |
her owns a lot which he wishes To /
improve; another may desire to add |
n room or two 10 his present dwell |
Ing; third may desire To invest In |
one or more building lots, The
money at disposal Is offered at auc-
Iion, aud those who offer the high /
ast premium got the loans. But no !
man can borrow greater sum than
he amount of stock he holds.
With regard TO premiums on
homes: lt is not unusual for pre-
niums To run up TO so per cent, al
hough somo societies limit the rate
% - or 80 per cent. That is, a mem-
ler who borrows $500 of his building
'ociety is liable for the payment of
'J50. This would be onerous and