Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-30
Built Almost Entirely by Building
and Loan Associations.
EVERY MAN CAN BE HIS BANKER.
Financiering to Show How Property Can
be Gotten for Nothing.
HOW TOWNS MAY BE BUILT BY TIE POOR

does not put tat on Savings banks ribs.
Building and loan organizations generally
had the misfortune to be mismanaged in
their infancy and youth, and in this
neighborhood the, generality of them
were caught by the panic of
"a survival of the fttest, however, they
coming through dentittion and other in
fantile ills unscathed. People who were
caught in mismanaged institutions are apt
to be still prejudiced against the system.
Some were run for speculative purposes,
and the few made money at the expense of
the many, and then mortgages we're taken on
property at the inflated values developed by
the war, and when the panic came both sides
were worsted.
The section of the city that appears to
have realized the greatest benefit from these
cooperative institutions is Mt Washing
ton. The first one started up there was
named after the borough, and organized in
1865 and as it still exists under a change of
name, or rather under two or three names,
it has attained its majority. Joseph Zshfus,
who became its President soon after organi-
zation, is still active in the general manage
ment A man named Butler was originally
the first promoter and President, Alderman
Jacob Sofel Secretary, and Peter Soffel
Treasurer. II organized with the taking of
LOU eudIGS, duO dibCI uVubhS Va painful
effort there was but little progress and but
about $500 in the treasury.
BUTLER GOT OUT.
Butler became dissatisfied, and attempted
to disruptit An interesting fight followed,
and the shares fell to 100. Renewed effort
built it up to $50 shares, and during its lite
it loaned S4S, 900; paid in stock Withdrawals
50, 574 80, and built more than 40 three and
IL
ers, who could never have accumulated
enough, save by accident, to have built 9TH
erwise This run out in 1873, and although
itmet with mishaps arising out of inexperi-
ence it was so profitable that it was immedi-
ately reorganized under the name of the
Prospect Building and Loan Association.
The Prospect organized in 1873, and dur
ing its first six years OF life loaned $83, 900
to its members, nearly all of which was in
vested in real estate and buildings on Mt.
Washington.
The second series of the Prospect began
October q, 1879. and closed January 5,
1886; total number of shares, 236; dues paid,
81, ,944 IS: interest paid, Sc, 1856 SO; fines
paid, $246 IS; transfers. S172 80; misceIla-
neous receipts, $277 20; loans, S59,7S2 13;
stock notes lifted, s., ,OS6; total profits, So
$50 6S; expenses, S799 26; net gain, So
083 A; profits per share, $SS 90; dues per
share, S161 so.
ss--The third series, which closed April
8, 1855, was duplicate of the
second, exceRt that it was on larger scale,
and its profits were $14, 1893. Not dollar
was lost in eft her the second or third series,
and but two foreclosures of mortgages were
made, and one of these was to perfect title.
The fourth series of the Prospect got more
money than was wanted, And swarmed some
% months ago. The successions are not
rated this way, as they only date from 1873.
but the Prospect being really the continue
tion of the Mt Washington makes the clas-
sifcation legitimate Anpther swarm is
being prepared, as again mohey has piled up
in the treasury.
HOW TO PREVENT s sfAGNATIoN.
The reader who is not posted should bear
in mind that as such institutions grow old,
all their members who Originally wanted to
borrow money getalkthey want and a sur
plns follows. 20 let it accumulate does not
pay, and question aries as to disposition.
Non-borrowers may be made take their
money baeE but this defeats the end which
this Glass; Id in view The surplus must
either be loaned to outsiders, or fresh blood
enlisted. So far no trouble has been ex-
peTienced in this direction. 1.-The poor We
have always with you," likewise people
who are willing to lend to the poor on un-
doubted security and this foundation forms
a new series. As the new one has more
calls for money than it can accommodate |
the parent organization lends Its sur
plus, and when the child, in |
its senility accumulates more
money than it can lend, it returns its loan |
to the parent organization, and enables it to |
redeem its outstanding obligations to nom
borrowers, These facts are embodied in a |
history Of the Prospect by Dr. James E. |
Wilson. A series nearing its end cannot |
take mortgages.
The Mt Washington German Building and |
Loan Association, first series, was organized |
in 1885, and ithss loaned to date SIS, ,675; cash
paid on stock Withdrawals, Sc, ,729 35; date |
of expiration, October, 1890. The second
series was organized in July, 1887, and it
has lent to date S53, 1913; cash paid on stock
withdrawn, 81, ,3S7 &C. The third series was
started last April, and has loaned to date
S9,243 9S, and has paid on stock Withdrawals
S237. These three series have built more
than 100 houses on Mt Washington.
DIR. Wilson states that at least seven
eighths Of the houses built on the Mount
last summer were on money obtained from
these associations. There were SO houses
erected, and some of them cost between S.
600 and $4,000. There is
NO SPECULATION
in this way of doing business, but to one
who had not made the system study, speci-
mems of accomplishment thereby would
read like fiction. One instance is told of a
day Aborer who had saved 500, and who
bought lot with it years ago. He could
get no further, however, his rent devouring
his earnings to such an extent that he could
not build house. At lengh he saw a way to
save. IS a week and took ten shares in a
building and loan association. He then
found q contractor who engaged to build
him house on a guarantee from the
association of payment when completed.
The arrangement was perfected and in less
than five years, by paying rent to the
association, the man had his house and lot
free, and refused $500 for it, and he had
lived in it iour-fftths of the time, paying
rent to the association.
LILIES WHO NEITHER ToILED NOR SPUN.
Messrs David Terrence, of the CITY
Treasurer's Office, and ex-Councilman
MiDsinger cast their eyes about them some
years ago, and found property consisting
of four lots and two frame houses on Mt
Washington, which had fallen into the
hands of savings bank, by the foreclosure
of a mortgage OF $500. They were members
of the Prospect Building and Loan Associa-
tiOn and got loan of $500 and bought the
property.
HOW THE PLAN WORKED.
They rented the houses for enough to nav
assessment, interest, taxes and dues, and
had S4S year surplus. In six years and
nine weeks the buildings and lots were paid
for, and they meantime had $2S8 in their
pockets and never paid out 81. and in ad-
dition could have sold the property for