The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1890-09-20

John Western, Esq, president 81 The
Home Building And Loan Association,
az Detroit. is spending few weeks in the
principal towns on the Menominee range,
gathering information rs TO the stability
aud future prospects of real estate val-
ues, with special reference To the building
and loan association business. Mr.
Western arrived In Crystal Falls on We'd
nesday from Iron Mountain where an
agent Of his association has sOld upwards
OF one thousand shares OF stock with
good prospects that 1000 shares will be
sold within thirty days. Alter talking
with "a number OF business men OF this
city. il has been decided that Il branch
OF The Home shall be- rgnnized here and
the PROSPECTS indicate that at least five
hundred shares OF the capital stock OF
the association will be subscribed for
here in the next ten days. The Home Is
very similar IN its principal features TO
the general run OF building and loan
associations which have been SO SUCCESS
ful IN aecumulating small savings and
assisting people 20 become owners OF
homes for several generations, both in
this country and Europe; but in some
very important respects III much fairer
in dealing with it's members than almost
any other association OF the kind. A
building and loan association may be
briefly defined as n mutual bank IN
which the depositorS are all stockholders
and the stockholders all depositors and
ia which the money is loaned on first
mortgage real estate security only. BY
looking at the subject IN this light, IL will
be seen that each member gets the full
benefit OF MONEY paid uy him into the
association. There are no preferred
stock holders and no favored class. The
poor mans dollar earns for it's owner
Just as much rs the rich mans dollar
II is no uncommon thing nowadays To
meet successful business men IN any part
OF the country who assert that they got
their start in business with money ac-
cumulgted in il building and loan Hsso-
citation by monthly savings from their
salaries while young men. Again, many
thousands Of families can testify that
their homes were secured through the
agency OF building and loan associations
Competent authority asserts that the
assets Of the building and loan associa-
tions OF the United States now aggregate
upwards OF 5000, 100000, showing that
this * one Of the most important
branches Ol business now known To man
kind. The Home Building and Loan
Association is organized under the build
ing and loan law OF Michigan with an
authorized capital stock OF $50, 900, 900
divided into shares of 500 each The
shares are divided into three classes,
according TO che way by which payments
are made, as follows: Class | known
~ Isl 90 instalnent shares" payable
i'm monthly instruments al Sl.OO each
per share. Class known as 80 cent
instalment shares" payable IN monthly
instruments OF fifty cents each per share.
Class 3 known az "advnuce payment
shares, by which S5iOO paid at once
purchases one share Of stock that ma.
lures into 500 in the same time rs the
Sl.OO monthly payment shares. Thus, II
a person can save $1,000 per month
from his earnings and desires TO have his
money and profits thereon returned
within six years he will take ten shares
OF 81 90 instalmcnt stock and pay $40.
per month for about five and one-haf
years, when his shares viii mature"
and he will be entitled Go draw 81 900,
making upwards OF sixteen per cent. on.
his money for the average time IL has
been invested. Tia member Is taken sick
or for any other reason ~ unable 20 con-
tinue his monthly payments, he can
withdraw all he has paid la except the
admission fee, and receive interest at the
rate OF six per cent. per annum, II he has
been "A member three months and under
two years seven per cent II over two
years and under four years. Again, in
eases OF this kind, temporary loans are
often made upon the members shares as
security, not 60 exceed cighty-iivc per
cent. Of the amount pad ON said shnres
The shares are also transferable aud can
he sold by one person To another by
having the endorsement OF the secretary
OF the association ON the certificate
From this il viii be seen that there h no
chance To lose money invested In building
and loan shares. IL Is also well known
that building and loan associations have
long been the safest class Of financial in
situations, from the three simple iacts
Cd that the money h lonned only ON the
best OF all security mortgages on
approved residence or business property,
l2) TINT no large sums arc carried IN the
treasury it beingall loaned out and com
pounded monthly, (3) bccnuse the loans
are all repaid ia monthly onstalments,
thereby continually reducing the risk
and rendering IL eaHy for the mortgagor
This journal Is pleased To- learn that The
Home does not conduct its business ON
the plan Of other large aSsocintions. Its
plan Is 60 organize ouly a limited number
of branches. md those only IN progress
sive towns where "A considerable volume
Of business can be obtained Ia this
way one or moro 81 the directors of the
association can PROFESSIONALLY acquainted
with the directors az each branch and
thus "a feeling of mutual confidence be i'm
spired and business between the branch
officers and the home Office be greatly