Wichita eagle., 1889-12-08
BUILDING AND LOAN ASSOCIATION.

To the Editor of the Eagle.
The Wichita Building and Loan associa-
ton having been the first institution Of
the kind organized in our city, and the
association being now ready to close up
it's business and wind up its affairs, its di-
rectors have deemed it proper to lay before
the public short resume of its operations
during the time it has been in existence.
The association was organized in Febru-
airy 1884, for period of six years. and be-
gan busip ess the first Of March 1854, with
the following board of officers tOwit: VIM.
Mathewson, president: John Tucker, vice.
president; r. II. Piatt, financial secretary,
/. L. Holmes, recording secretary, and q.
w. Ceilings, attorney.
In 1887 VIM. Mathewsop was succeeded
as president by J. B. Carey, and
In isss A. A. Glenn succeeded
J. NJ. Allen as treasurer. and in 1855
Joseph Rich was elected recording secre-
tary in place of j. r. Holmes. This fnan-
cial secretary and the attorney have both
served the entire time since the organiZa-
ton Of the association Substantially, the
same board of directors have conducted
the affairs of tho association, and that they
have achieved q success, the following
figures will show.
The total amount of dues and assess
ments paid on each share of stock from the
first day OF March. 1884, to the first day of
October, 1889. "a period of five years, seven
monts and one week. is So. Is On the LIST
paid off at 800 per share, and all mort
cages on borrowed stock released and the
stock cancelled. This showed net profit
on each share of stock of S23.85, which,
averaging the time this money
was in the association, gives to
each share of stock a little
over II per cent profit per annum on the
plain that We average the time the money
was in the association by taking either
One-half the time or one-half the sum paid
in either of which is correct.
The gain of IL per cent then shows that
these associations, properly managed, COM
bine the advantages of saving bank with
much higher rate o. interest than any
Case, to the borrower the benefits have
been equally divided, where the borrower
did not pay an unreasonable premium for
the privilege of borrowing. All loans were
made at per cent per annum and a bonus
or premium. but as none but stockholders
could borrow from the association, and rs
the borrower shared equally with
the other stockholders in the profits,
the actual interest paid WAS often
reduced to merely nominal sum, and on
very low premium actually cost the bor-
rover nothing One stakeholder who bor-
rowed $4,000 little over four years ago at
Il premium of $50 per share, figures out
that his annual interest was less than 5
per cent. Others who only gave SO or S12
premium come out about even; that is,
had the use of this money for their snare
of the profits whilst several others who
were SO fortunate us to get their money at
a nominal premium, actually received
more money from the association as loan
than they paid in during the life time of
the association. This is accounted for in
this way-that as they only paid per cent
interest and a small premium sometimes
a. low as % cents, and were at the same
time getting II per cent on the sums paid
in by them, any one can see, rs mathe-
NAUTICAL proposition, that the advantage
was on the side of the borrower.
The total amount Of money collected and
and paid out during the life of the associa-
ton is about ISL 900 or $4,000 per annum,
equal to 81. $50 per month. 1t IS impossi-
bic 10 estimate the number of homes we
have enabled parties to secure within the
five wears and half of our existence, at a
cost of but little more than the annual
rent of the same class of houses: the prim-
AIRY object of this association being to
enable persons of sm,lI means to acquire
Il home by weekly payment insignificant
in itself but agRregating considerable
sum in the course of few years.
In retiring from business. the directors
desire to express their appreciation of the
assistance the stockholders have afforded
them in the exchange of their duties.
JOSEPH RICH CON-