The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1889-11-02
The NatIOEal Building and Loan
ASSOCIATION

Early last spring smooth-tongned de.
ceiver visited this city, and organized
branch OF this institution. Each indi-
vidual member paid him $50 as admis-
sion fee, and he painted a glowing pic
ture of the advantages to be derived. No
other assessments were paid but the first,
the people, after investigating the matter
and comparing the promises of the agent
with the rules in the printed circular,
coming to the conclusion that there wa.
humbuggIng somewhere. The following
we quote from the Minneapolis Tribune,
printed at the headquarters of the instl.
tuition, and for this reason we may take
| the article to he truthful and honest:
| AS an illustration of the interest that
the outside world is taking in the affairs
of the so-called building and loan asso
| citation of Minnesota, the Tribune makes
room this morning tor considerable
portion of an official report made upon
| them some weeks ago by the authorizes
of the state of California. No hint of an
apolgy is due for this repu bIication. 1t
Is the Iri6uneS business to inform the
local public when our chartered business
institutions fall under the sharp criticism
of other communities. 1t Is also the
Fbtsiness of reputable and honest organs
of local opinion to see that establishments
locating themselves here and thriving
upon the good name of this community
shall not 60 up and down the land push
ing improper schemes without being
called to explanation or account. Let US
put the explanation plainly and bluntly:
1t is the belief in many quarters, east and
west, that the American Building and
Loan Association is scheme to defraud
the poor and unwary. We know that it
is gigantic concern, and that it is sell
ing It's stock by the hundreds and thou
sands of shares all over the country. If,
therefore, Its plan of business be uusound,
the ultimate sufferers Will be thousands
of small investors all over the Union
whose confidence will have been abused;
and this city of Minneapol which is
supposed to nourish and back the new
tangled scheme that masquerades under
an old and honored name, will be held
accursed in the minds of myriads of peo-
pie.
No other financial institutions ever Or
ganized on earth, not even the worst of
the bogus assessment insurance COM
panies, have ever as we believe made such
exorbitant charges for expenses. After
the outrageous initial payment of 81 IS.
made for the privilege of deposlting
money in this savings concern, the de
positor along with every monthly deposit
he makes must pay, in advance, whole
years interest upon his deposit ut the
rate of II per cent. Yet he is supposed
to be deposItIHg for the sake of making
money, and he is assured that his money
is aIcruing for him at the rate of from 81
to 25 per cent.
What Is the simple truth2 The inves
ter IN this business instead of getting in
terest upon his money pays in advance
more than 90 per cent on his money for
the privilege of letting it go into the
hands of MIR. Rundell and bis association.
Last year this company sold 23!, ,241 shares
ofstock and captured, besides the INSTALL
ments, the sum of $237 ,241 for "expense'
money. A like sum will come in on these
shares within one year as extra money
tor "expenses" But meanwhile new
shares are being sold all the time. The
company has hardly regarded itself as
fairly under way. Suppose its sales dur
ing the current year are 100000 shares.
This will mean the clean haul of 81 ,0OO,-
600 for expenses within single year,
while the expense money from the earlier
sales keeps flowing in with un llmin ished
volume.
The company must make the money 1t
loans accumulate at the rate of at least |
80 per cent year to pay back the inves-
tors what it promises them. Certain re-
liable experts have placed it at 70 per
cent-yet it can only loan In the ordi |
nary way at ordinary rates of from 6 to |
8 per cent. Such is the situation.
"Johnnie, what are you goiog to be
when you grow ups"
"Oh, am going to be solder"
"You might get killed."
"Who would kill mes"
"Why the enemy, of course
"Weil. then, I guess I will be the
enamvu