Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-09-04
NEW TRUST IN SIGHT,
This Time the Building and
Loan Associations
WILL FORM A COMBINATION
Mr.. Louis Kramer UnfOlds an Ex-
change System Of Loans
FOR EQUALIZING SOCIETY FUNDS.
Delegates to Meet and Form a Central
Organization.
WILL FORM A COMBINATION
FOR EQUALIZING SOCIETY FUNDS.
SETENTY-FIVE MILLIONS CAPITAL

The latest thing in the line of trusts is
now under consideration in Pittsburg, and
bids fair to assume material form at an early
date. 1t is no more or less than combina-
ton of all the building and loan associations
in the city under one management or CEN
tral power, with reciprocal interests. The
trust will be of such character that out
side associations could not compete or offer
the inducements, and would have to go to
the wall.
Both Pittsburg and Allegheny are noted
for their large number of associations of
this kind and any sort of combined organi-
zation would naturally be very formidable.
The plans are now under advisement, and
many of the societies have been approached.
The first agitation of the subject COM
menced at a meeting of the Fifth Avenue
Traction Building and Loan Association.
When the regular drawing took place, its
officers were surprised to find the calls for
loans amounted to over $4,000. The ques-
tion came up before the Board of Directors,
and they discussed for a long time plan to
accommodate members with money when
they want it and the treasury is
empty. A prominent member of the
association suggested that every building
and loan association in this city should
appoint delegate for the purpose of form
ing an exchange, or in the language of the
times, q trust. They would elect one CON-
petent man to be manager and have charge
of all the correspondence between the dit
terent organizations. This central Office
would keep a complete account of the doings
of all the societies, and would know what
number of them are making forced
loans, and which have a call for
more money than is on hand.
HOW SUCH LOANS WOULD WORK.
Those making forced loans would revert
their funds through the central Office to
those wanting money, and would thus
equalize the business of the associations and
make it possible for an association with
small funds on hand to give as large loans
as an association with more capital and
better business status.
Mr. LOUIS Kramer, of the Fifth Avenue
Building and Loan Association, who gave
the above information, was asked for an e1-
PLANTATION of what a forced loan was, and
said:
1.-The answer is very simple For in
stance, you have Joined a new association
with the intention of saving probably from
81 to s. per week. Your society receives
applications fran members who desire to
draw, all told, $4,000 After these funds
have been paid out there are no more appli-
cations, and the money accumulates and
lies idle. Under the present plan when
this state of affairs occurs let the society
pass resolution that each shareholder who
has not drawn any money shall be given,
for instance, S. per share on the amount he
has paid into the society. This is forced
loan. The money is being drawn and inter-
est paid on it by the very people who in
vested it in the association to make interest
Instead they pay interest on their own
money.
SIN case like this Withdrawals fiom the
society would be made by fully one-half of
the members. If there was an exchange or
combination the officers of the association
being compelled to make forced loans would
notify the central office. In turn the asso-
Citations wanting money for loans would
notify the office, and the manager
WOULD ACT AS A MEDIUM
between the two to equalize the issue of
funds and keep all moneys in the treasures
of the different companies in circulation on
interest. The society wanting the funds
could even pay bonus These things could
easily be arranged to the satisfaction of all.
Possibly regular systemcould be devised
for this part.
"a loan has more than once been
negotiated between two societies in this
way. Our society loans the other s., 900 or
$4,000; the security is an ordinary prom
issory note with the signatures of the
president and secretary attached, and in
dorsed by , 5 or 1G property holders of the
organization making the loan. This re-
suits in delays which could be avoided by
the proposed exchange. 1t would then be
possible to make loans for six months or
even two years, and everybody desiring |
loan could be accommodated.
Mr.. Kramer said that the subject was
being discussed, and he thinks that in a |
short time a meeting of all building and |
loan associations will be held to take some |
formal action.
The following names of societies are given |
whose members have already been seen on |
the subject, and so far seem very favorable |
to the plan: INLAND, Riceville, United, |
Sixth Ward, Eureka Savings Fund, H C. |
Wolf Sarah, Allemania.
The Real Estate Record and Builders
associations in Pittsburg, 30 in Allegheny
and II in boroughs and townships Whether
the trust will be constituted of other associa-
tions outside of the two cities will be one of
the questions to be decided, but, with 90 So
cletles, 1t Will necessarily take some time
to organize such a new scheme. Its advo-
Gates, however, are earnest in their convic-
tions that it is as well as an assured thing.
KRAMER is HOPEFUL.
In closing the interview Mr.. Kramer said:
'Let some of the old staid building and
loan association men take the proper view,
and If in the near future such a thing is not
in existence, it will be for the reason that
they are not in favor of carrying out the
original intention OF a building, loan and
savings fund"
The capitalization of the Peoples, Cash.
Industrial, Globe, Merchants and ali of the
large associations, is 81, 900 each. The
German associations have smaller capital
1t is safe to say that the combined capital of
the 113 associations in this county repre-.
sents at least SIS, ,O0O,000
James j. Flannery, President of the
Globe and Cash, and Secretary of the In
dustrial Societies, was asked for his opinion
OF the combination last night. He mad not
heard OF such project before, but was very
much interested in what was told him. He
said he hardly wished to hazard an opinion
until he knew more about it, but was willing
at any time to attend a meeting to talk it
over, and would inquire into it right off,
He said it seemed. to favor too much OF
trust and might result, if formed, in huge
banking house.
As far as the equalization of the output
of funds is concerned, he thought that
would be a good thing, at least, for the
associations having funds on hand.