Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-07

is too small and must entail too long wait on
those who want homes. and when all paid up,
can furnish only limited number with them.
Sixth-Ihe purchase of property will tax all
the resources of the companies and if class Q
Is Drawn upon, it cannot be paid back as con-
tactedfsay in one year.
Seyenth-ln this section an ordinary house
would cost s, 500, and not only would the re-
sources OF the company soon be exhausted, but
Ine member IN class getting such home
would be overburdeued, and after paying half
life time would have paid 663S per cent more
than its original cost The length of time, l6ss
years, is too long, building and loan associations
hnding 100 months too long,
THE ONLY ALTERNATIVE.
''The plan," says the examiner, "can be
carried out only by the company giving its
mortgage in part payment Of the property
it buys to sell again to class A, for the
reason that it cannot have the capital to pay
for it, and when it agrees to sell to its men,
bers and put them into possession the
mortgage for larger amount than what the
member is to pay is lien on the land, and
the company collects the members pay
ments and may never pay the liens, and he
may consequently lose the property.
This is the weakest featurein its financial
policy, and could be readily obviated. The
forcing of member of Class A to take
property he may not want is unjust. Money
cannot be loaned for more than two or three
wears after organization, as the payment for
real estate will absorb it. The common
stockholders, class B, make all the money
by the rise of minimum of
their own investment and a max
imum of that Of class c, and
of the buyers, Glass A, and on account of
the long time given Glass A, sell at a large
advance and use the credit of the land they
sell TO carry their Indebtedness until Glass
A has paid sufficient to relieve them.
''The scheme is not commendable one.
1t is treacherous and liable to ruin the poor,
who are captivated by its specious promises.
The least that can be said of the contract
the company makes with Glass A is that it
is ruinous. The scheme is cunningly de-
vised. to suck all the blood of poor A after
using him as tool without his knowledge,
and if he fails after having made his pay
ments for years, then to seize his home,
giving him nothing back, and then to make
a further profit.
In closing emphatcally disapprove of these
companies and regret that they should have
found foothold In this Community.
NOT ENAMoRED OF IT.
It will be seen that this legal adviser is
not enamored of the project in any sense,
and he calls attention to some of the provi-
sions of the Penn Homestead and Loan As
sociation of Allegheny City. as appended,
stripped of its legal Verbiage:
But in case the said John Doe shall fail to
Keep the property in good repair, or fail to
make the payments aforesaid, or any of them
within four months after the same or any part
thereof become due, punctually and upon the
strict terms and time and times above, limited,
or fail to keep the property insured, or
suffer taxes to become delinquent OF fail to
perform and complete any and all of his agree
ments and stipulations aforesaid, strictly and
literally, the time and times of all payments
herein provided for being strictly the essence
of this contract, then the company shall have
the right to declare 1t null and void, and there
upon all right, ETC., in the premises hereby
created or then existing in favor of the said
John Doe, his heirs, etc, or in any manner de-
rived under this contract shall utterly cease,
and the party of the first part may Immediately
enter on the premises and take complete pos
session of it and all Improvements, without
any declaration of forfeiture, or act of re-entry,
or without any other act by said party
of the first part to be done or per-
formed, and without any right of
the said John Doe, etc, for reclamation or COM
pensation for moneys paid or advance pay
ments made or Improvements (all payments
and improvements and advance payments
made to be taken and regarded and applied
only as for payment of rent for the time the
premises should have been rightfully occupied
by the said John Doe, etc., to the date when such
default was made), and the party of the first
part shall be held to be the owner of said prem
never been made, etc.
In conclusion it is stated in the compact.
that it is the intention of all parties inter.
ested to avoid a foreclosure of the contract.
THE LOCAL LIST.
Organizations of this kind chartered, as
shown by the books in the County Re-
corder's Office, are: Allegheny County
Loan and Trust Company, East End Loan
and Trust Company, Penn Homestead Loan
and Trust Company, Lawrenceville. Home
stead Loan and Trust Company, Enterprise
Loan and Trust Company, Southside Home
stead Loan and Trust Company, Braddock
Homestead Loan and Trust Company, and
Manchester Homestead Loan and Trust
Company. They are also organized in
Beaver Falls, New Castle and Meadville,
and doubtless in most towns of any size.
The capital stock seems to be generally
S15, 200.
1t is not to be expected that the companies
will plead guilty to the Indictment pre-
ferred against them, but some people look
upon the fact that there is general desire
to go into associations calculated to relieve
the plethora of capital as pregnant with
great danger in the future if people allow
themselves to be carried away by specious
plans they cannot understand Some peo-
pie hken many enterprises projected at pres
ent to those life insurance companies that
promise something for nothing, such as pay
ing man policy of 81 900 in ten years on
payment of sum Of money that cannot pos
sibly be used so as to produce that amount
in the time stipulated. They hold that the
mutual building and loan association which
only promises small but certain results as
the best under all circumstances, The cap
ltal invested in these is enormoug