The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-04-17
A SAFE BUILDING PROJECT.
BUYING LAND AND ERECTING HOMES.
Each For Himself-A Plan That VIII Catch
the Average Man-Real Estate Revo-
Iutionized-A Project That Has
Been Successfully Tested.
GPittsburg Dispatch.l

Pittsbur9 and Allegheny will, in few
days. have perfected cooperative organ
ization unlike anything heretofore tried
in this state, and before proceeding TO tell
what it is it may be briefly stated that its
object is similar to that horse sense which
would be supposed to impel three families
to pool their issues and buy barrel of
onions for $3.50 and divide, instead of
each paying Sl.60 for a bushel.
1t is often noticed that the wealthy can
combine with facility and profit, but the
poor very rarely, in this country at least,
and the corporation noted proposes to
endow the poor with the same power that
the rich possess.
The Pittsburg homestead cooperative
association is a corporation organized on
a plan which, plainly speaking, means
that all its members work together for the
accomplishment of its business purposes;
and is strictly mutual corporation, as its
members mutually contribute to its capt.
tai, which is employed for their mutual
benefit. The purposes for which it was
chartered are the buying, selling, holding,
leasing and improving of lands, tenements
and buildings.
The corporation was first suggested with
a view to afford better opportunity to
people of small means OF procuring their
own hOmesteads, and the conclusion ar
rived at, that such an opportunity could
be better obtained by an association COM
posed of all such people, who by small
periodical payments within their ability,
to common capital, would in a quicker
time get better homes at a cheaper price
than by their own individual efforts. The
feasibility of this plan had been demon
strated in New York City by few work
men organizing an association composed OF
1000 of their workmen, who each paid 81. 30
a week into the association, and In the
course of year bought large tract of
land in the village of Mt. Vernon, a sub
urb of New York. OF the New Haven rail-
road, and furnished homes to all their
members and many others who subse-
quently Joined them.
This homestead plan is to be put in oper-
alton here by this corporation. The peri
odical payments have been fixed at 81 per
week, SO as to make it available to people
of limited means. The land is to be
bought in the city of PIttsburg or Allie
gheny or suburbs, on the line OF some
speedy public means of travel, as near the
present built-up portions OF the city as
possible, in such location as the members
may determine, whenever sufficient capt.
tai has been acquired. On it's purchase
one lot is to be conveyed by deed to each
member. The member is to obtain his
lot at actual cost. The corporation also
undertakes to build houses on all the lots,
at cost price, on like easy terms.
The membership is intended to be very
large, it being estimated that 1t will run
up to 10000. The members have but one
vote each. The membership is not re-
stricted, any person, male or female, of
good character, being eligible. Minors, it
seems. are permitted by law to become
members and make contracts with the cor
poration, this being the only instance in
which it can be done. One cOmmendable
feature that deserves notice is that a men,
Der can withdraw and get his money back.
This is certainly the most beneficial
scheme for the betterment of our people
of small means in its undertaking that
has ever been introduced here, and with
proper encouragement from the public In
joining it, and strict attention to business
and the exercise of good judgment, ought
TO result in an annex TO our city OF at
least thousand homes, and prove both a
dement, 10 INC CITY anu a DtI6Oudl
benefit to the people.
This is a novelty in real estate associa-
tons, being the only one OF the kind in
this country. 1t has no similarity in its
organization or plan of business to the as
sociatIons known as homestead, loan and
trust companies" 1t is chartered under
an entirely different act of the assembly
from anv other real estate corporation
I0,vc, h,rCiYacc haro In tho nf
CARRYING on its business it very closely re-
sembles building and loan associations.
Cities like Philadelphia owe the extent to
what their improvements have reached
very largely to such enterprises as this,
and this seems like a move In the right
direction, and one greatly needed to i'm
prove the thin settlements and outlying
districts of our city, and cannot be too
successful or have too many competitors.
The leading idea of this plan-that the
people can help themselves to homes by
concentrating their efforts-is the true
one. The principle of the power of CEN
tralization has been recognized in most
other things, but somehow seems not to
have been applied in this direction here
tOfore.
There is a radical difference between
the. manner proposed for doing business
bv this corporation and that usually fol-
lowed by building and loan associations.
The money paid in is represented by
stock certificate, and though holder NAV
sell his stock, he cannot borrow on it
from the association, the object being to
accumulate with specific object and not
dissipate energy by scattering the fund
among a portion of the members. Ac-
cordingly, they do not borrow. When
there is money in the treasury it will be
loaned or invested so as to make money