The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1889-09-08
o SUSPICION.
A Minneapolis l<Daa Associations NNho.e
Record IN Not Clear.

a Minneapolis lBan Association whose
Record D. Not Clear.
The American Building and Loan Assoc
citation Of Minneapolis, Minnesota, OH
tanned during the past winter quite n
membership i'm Anaconda, and estah-
lished n lo,al hoard here through which tn
transact it's business. This hoarl is COM
posed Of well known and reputable busi-
ness men. who, having full faith in the
representations Of the association, became
members and undertook the management
belief hat il was a reliable and beneficial
institution. S~uhscquent Developments
make II appear that while the nce
may bea legitimate and stIbsta initial corpo-
ration. its management at the head office
IA exceedingly lax. and that mp tai date il
has not fuihiicd is part of the contract
Ihe plan of the association il the usual
one OF issuing shares which, upon the
and ny reason of the profits and interest
accrilng from the fund thus created.
mature i'm seven years time; hcinR worth
Sio per share at maturity. Loans
are made ON approved real estate
security, at ~ per cent. Of the actual
value of the same. the member surrender
ing to the association 81 per cent of the
par value of his shares in ORDER to securs.
the loan. His application for "a loan is
made tn the lotal board. whose mcmls'rs
appraise'thc property offered as security.
and finding II of the value represented in
his application, approve the loan and for
ward II tai the head office. where i'm due
time-applications, and bids being CON
sidcred wcekly-it is acted upon.
D their face, these conditions read all
right. A member obtaining u loan. re-
taifs II until the shares he still Possesses
mature. and the only financial burden inn
posed upon him i'm addition to his monthly
assessIn:nt. IL six per cent. per anuum i'm
ters.st. Hence. AT the expiration Of seven
years. MS shares repay the loan and lac
hardly feels the tax lc has borne all the
while.
The scheme is apparently such a busi-
ness like and beneficial one that the as
SONslltlOn .alylsrtlsaS.- N tn DxsIItls. without
homes OF their own, and who lack
immediate means to build them, as
one whereby they can accomplish the de-
sired end. Taking this view of the mat
ter, several residents of Anaconda became
members. but wlsen they undertook to
apply for "a loan they found they could
not obtain il. since they lacked the realty
necessary tn secure u. Even in cases
where n,cmbers who, desiring LOANS and
rendering ample secnritymadc application.
endorsed by the local board. and when
all conditions required 10y the association
were complied with, the money has not
have now been i'm the hands of the head
management for months, hut if any dcfin-
tie action has been aiken upon them, the
officers Of the local board have not been
Again, the board understood at the.
time of its organization that it's
r wd"iT ~ %cc an apr Mi,n"., question. a"r lo va,
the head Office has solicited private APP
praisals of the property offered for sst,-
rity i'm the cases named, and. even after
doslbly assuring themselves, they still
Withhold the loan. thus, il would seem, fail
ing in what must be considered their chief
function. and the essential part of their
Altogether the operations of the con-
Germ look decidedly suspicious, and II
would he, wise for parties who may he
financially Interested tn exercise AS much
care in the investment of their money in
,is. concern.