Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-11-05
EQUITABLE c. b. ASSOCIATION.
Of Business and Assets-Success OF Co
operation-New Issue OF stock this
Month.
WASHINGTON. D. C, November 4, iss.

strong additional and convincing proof Of the
sound principles upon which our association 10
established and conducted The figures given,
showing the transactions Of the association up
TO the close of its tenth year. tell in unmistak-
aole terms that the Equitable IL working for
the good OF all its members-for the borrowers
ana lnSestors-and that they are realizing sctu-
all! the fullest practical benefits of true eo-ope
ration.
IL has been the earnest determination Of the
omSers ana members. in a spirit OF accord and
with the best cooperative methods. 20 carry
OUT the true object and purpose OF the associa-
tion-namely, TO encourage the regular monthly
saving OF small amounts upon stocks which
would produce fair profits and accommodations.
and to make advances 20 purchase property NJ
reasonable rates of interest and upon advnnta.
geous terms.
Wage-workers and people Of moderate means
in England, especially. and 90 a less extent in
other European countries. have organized and
conducted cooperative societies, for various
purposes which have not only been successful
IN a remarkable degree and productive Of the
best results and good 10 the individual. but are
continuing TO do so. and are growing in favor
and multiplying with a fair prospect Of becom-
ing universal.
In this country they have not until recent
times been measurably successful and inn
pressed the people with the great benefits and
advantages that they may secure through as
sociations organized on purely mutual coop
eratiye principles. We believe that the men
who have been called 10 manage these organi-
cations IN this country coming to have q
clearer and a truer comprehension of the prin-
clples OF cooperation and OF how they should
DC properly carried out in that even, Just, and
equitable manner for the maximum good OF all.
In England, the Earl of Selkirk. over seventy
years ago, believed that men could enter into
an organization and operate a cooperative
saving and loaning institution that would re-
suit for the mutual benefit of both classes-the
saving and the borrowing class; that they could
enter INTO an organization governed by them
selves, by which the larger number could make
small regular savings, such Accommodations to
be loaned to the other portion of the member
ship TO obtain houses.
1t was an advanced idea that men could thus
organize and deal with confidence with each
other and succeed by employing such fair lust
and considerable principles which have always
proved TO be the real foundation of co-opers-
ton. Such an association is therefore dIstin-
guished from other financial organizations IN
this particular of mutually Of interest between
the borrower and investor and both of these
are also of the saving class. Not only is the as
ISOLATION based on the mutual interest Of all,
but II strives TO apply this principle in a prac-
tlcal manner, and TO combine saving OF small
sums, with fair profits, with loans TO its bor-
| rowing shareholders, at reasonable rates of in
| terest Experience has shown that this is the
| safest course, since excessive rates of interest
| are always attended with greater risks.
The Equitable, in advancing funds TO its
members, has always aimed to advance to those
who are purchasing homes, giving them the first
consideration or preference instead of those who
| apply for advances for speculative purposes
Money advanced 20 members TO buy homes,
furnishes the safest security of any that can be
| taken. For We all know that man will make
greater efforts and fight harder to save and pay
| for his home than for any other financial I'M
dertaking; therefore, the great bulk Of the
savings accumulated by the members of the
Association having been advanced to those who
are securing homes. the Association has thereby
| obtained the best security, and it's chances OF
meeting with losses are at the minimum. In
this connection. il is a great satisfaction that
the directors are still able TO state that in b ut
one instance has the Association ever been
| forced to foreclose a mortgage, and even then
no loss was sustained.
The method provided for small monthly saw.
| ings, as practiced in this Association, being
regular and SO systematic, has the best
possible effect upon the efforts Of its menu
bers to accumulate. BY the rules they
take one, two or more shares, which
require a monthly payment of s25O or IS,
&c. This payment must be made every
month. II, for any reason, one month is passed,
a double payment must be made the following
month. 1t schools person to be prompt and
regular in making these payments, and the re-
| suit Is more certainty of success in saving. The
| larger the sum becomes. with the accruing
| profits, the more likely the payments arc TO be
| kept up. While Withdrawals can be made I'M
der the rules, when the shareholder deems il
\ necessary. vet they not be made readily,
| in small and irregular amounts, as by drawing
| a check on a bank. Tho result is, in the ma
| jority Of cases, as the growth Of the Associa-
! ton shows, that the members succeed in saving
amounts Of such importance, as TO make it
| possible for them TO purchase property or 10
| use ii for other business purposes.
This being the tenth year that the first issue
has run, ii has reached thai period when the
| shareholders who offer their stock for redemp-
ton, are entitled TO the full earnings up TO this
date, or up to any future date, at which their
shares may be redeemed. Shareholders OWL
ing stock IN that Issue have the privilege, first,
| of Withdrawing their shares with full profits
earned thereon from November, 1879, to this
date, or, second to hold and to continue TO pay
on their shares. and thereafter realize the full
| profits thereon from November. 1879. to the
date of the withdrawal This action on the
part of the directors. in the treatment Of stock
upon its reaching the tenth year. under the
| provisions of the constitution, IL exactly in ac-
cord with the original intention Of the trainers
| of the constitution.
1t has been suggested, and the subject has
! been considered by the board. to issue certifi-
Gates for paid up shares of stock, and thereafter
paw dividends upon the same. But, il was
plainly seen from the first, that such a course
would be departing from the first principles Of
| the building association and of cooperation
| BY issuing permanent paid up stock, or receiv-
ing deposits, or creating any permanent paid
| up investments, the true object or design Of
| the association would be defeated, and the BEN
efits and advantages derived from membership
vouchsafed by cooperative building assocla-
ton, based, as il Is, upon equality OF interest
would be ultimately overturned The objected
the association is to provide for persons Of
moderate means and income. and so prescribe
its rules, and manage Its affairs as TO AFFORD NO
inducements for capitalists 10 invest.
The receipts for the year ending October Is,
1889. 1854, the monthly average
being S79, 50367. The receipts were S39, ll0.74
more than last year. The average yearly re-
ceipts for ten years have been S4sl, 707.7l. The
amount of monthly payments savings on
stock at $3.50 per share for the past year
S404. &c., 49, or an average of $50, le per
month; S2SS, 49l. II in the same time has been
returned on stock to the members making the
net increase in stock this year SIG, 47462.
Upon the amount returned, eli, 63l.l 10 profits
were paid to the members. The total receipts
to date stock have been q, 290. 35s.06, and Of
this 81. 1858, 59l. 80 has been returned, together
with 5,35506 profits.
The average rate per cent upon advances
during the past year has been 65. which has
been very near the ruling rates Of interest that
money has commanded In the outside market
1t is maintained that the nearer the ruling
rates of interest upon advances are made,
thereby yielding fair and safe earnings TO the
saving and investing members, the greater
the success.
The ret earnings have been 6.64 per cent
The expense of mana cement has been at thu