The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1889-11-19
MIR. HGGLHSYON'S PLANS.
He Has a Hard Tine Ex-
planning 1t to B. & L.
Men.
SOME SHARP CROSS QUESTIONING,
The Story Of a Lively Meeting at
the Avenue House.

Provident Association of Manchester,
n. H., opened % branch Office at No. 43O
4 Palisade avenue They advertised and
circulated information regarding new
building and loan system by which man
could obtain a loan at the surprisingly
small rate of 81 per cent. They claimed
in their circulars to have special charter
with privileges granted by the Legisla-
ture by which they were enabled by
means OF their bond department to make
loans and profits which the local building
and loan associations could not make.
The new system was illustrated in
prospectus, which claimed to revolution
ize the old methods of the building and
loan associations. George j. LaWton,
real estate agent on Palisade avenue, was
asked to accept the agency for Hudson
county, which he did.
The association then announced meet
ing to be held at the Avenue House on
last Thursday evening, on which occasion
Clark M. Eggleston, treasurer OF the
Granite State Association, would present
some facts which would convince the
most skeptical that the new association
was great improvement on the old sys-
tenn, and everybody was invited. On that
evening the hall was packed. Mr.. Eg-
gleston did not appear on that evening
and the large audience was disappointed:
They were told that Mr.. Eggleston would
positively appear on Monday night CAST
night)
At the hour appointed for the meeting
last night the hall was crowded. Judg-
ing from the people / noticed present the
meeting promised to be hot one, and l
was not wrong in my anticipations, as it
was red hot.
Among those present were:-B. Roede,
of the "fndustrial;o AL. Southland, of the
korry Vortr Cffya.. Char1as HnnnaSV
city editor of the New York NetoS; M. p.
Merseles, of the North Hudson County
B. and L. Association; A. A. Frank, sec
retary of the same association; George o.
Osborne, G. NJ. Condict, John III. Jakeway
and many prominent real estate men.
MR.. EGGLEsToN's EXPLANATION.
1t was very critical audience and Mr..
EQQleston seemed to be little bit afraid
TO open his subject. After asking hi
audience not to ply him with too many
questions he began by saying:-
"Gentlemen.-I suppose that it is time
that we should enter into this new
scheme and see what we are about. I
want to say, however. first of all that we
are not here to antagonize any local
building and loan association. l believe
that you have some very successful local
organizations and they are entitled to
credit. If there was nothing better and
there was no improvement on this, l
would say that it is very good institu-
tjon. But / think we have an improve
ment There is room for all, and If do
not prove what have asserted tonight,
5 why, all right. We have a great work
before us. We want this tenement popu-
lation to own their own homes, and will
prove to you tonight that a man can own
his own homo on less time in our associa-
tion than i'll the local ones"
ADVANTAGES CLAIMED.
Mr.. Egglestone then produced black
board on which the following facts, as he
claimed them to be, were written
First-That twenty-five pc, cent profit
will pay out in ten years.
Second-That the Granite State Provi-
dent Association can make 100 per cent.
the same as local association can make
twenty-five per cent.
Third-That the Granite State Provi-
dent Association can build four houses TO
the locals one.
Fourth-That the profits it will make
will pay out in seven years.
Fifth-That this enables borrowers to
get money at a uniform rate of interst.
Sixth-That it makes surprising profit
for all investors that buy shares in a reg
ular way or take paid up Shares of which
we offer three kinds.
Mr.. Eggleston said he would not figure
on the first question. He said he was
sorry that he had lost clipping from a
a Brooklyn paper. which contained an
experts opinion who feared that the
pected TO pay up in ten years. could not
possibly do it, For them to do it he
claimed, would take an unprecedented
profit of liz per cent and this did not
allow one cent Tor expenses.
tsNow, gentlemen, would like to ask
you," Mr. Eggleston said, ''if 200 shares
in your association would pay off in ten
yearsp
Mr.. Gonthard-.iT depends upon
circumstances; increased valuation,
etc.
The audience seemed disposed to coin
eide with Mr.. Eggleston's statement that
it could not, but were eager to hear of his
new method. The speaker then started
in to explain how the new association
could make 100 per cent. when the old
one could only make 25 per cent.
THE NEW METHOD.
He first explained the old method, which
is familiar to almost everyone. He then
said:-"Ihe Granite State Association
pursues exactly the same course up to the
time of the taking of the mortgage.
When we come to the mortgage we ask u
party for first mortgage, if the loan is
$500 for $500. and a second mortgage for
5000 Now, no one questions that the
first mortgage is salable for its face value
This, the Granite State Association is per-
mitted to sell, BY a special act Of the
sociations do not enjoy. We sell the first
mortgage, and it brings back into our
treasury all but 5000 on the $500 advanced,
$500 of which is Contributed by capital and
5000 by our members
Up to this period Mr.. Eggleston had
got along swimmingly and no one seemed
to anticipate what followed. Mr.. Hen
messy arose at this point and asked Mr..
Eggleston If he would please answer
some questions which he would ask.
Then he propounded this query
"Is it not true, Mr.. Eggleston, that the
American Allotment Association, with
which this organization has been identi-
fed, faileds"
s'No sir; 1t did not.n
"Did the poor people get their money!"
THAT don't know" (Applause)
Now, Mr.. Eggleston, is your associa-
tion in any way responsible under the
laws of the State of New Jersey-can IL
be held responsible the same as tho local
building and loan associations?''
well, in the State of New Hamp-
shire"
'But that is not what we are speaking
Of" interjected Mr. Henuesy "The
question is whether you are liable under
the laws of the State of New Jersey2"
II do not think we are" Q4aughter.)
A TOUGH QUESTION
''Now,n continued Mr.. Hennesy; "was
not one of your agents arrested in New
York about six months ago for SWIM
dling?"
This was a "corker,'' and took Mr.. Egg
gleston's breath away. He recovered suf-