Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-30
SAVING THE PENNIES,
The Means by Which Many Work.
men Are Securing Homes for
Themselves and Families.
SMALL WEEKLY INSTALLMENTS
Secure Loans of All Sizes on Low Iates of
Interest in Building and Loan
Associations.
HUNDREDS OF MILLIONS In THEM
And Wealthy People Sometimes Welcome the Adv sntsgs
They Afford
SMALL WEEKLY INSTALLMENTS
HUNDREDS OF MILLIONS IN THEM
And Wealthy People Sometimes Welcome the Adv sntsgs
They Afford


holders are concerned.
1t is estimated that there are upward of
500 of these associations in Allegheny
county, with a combined membership OF
l0O, 1000, and d united capital Of not less than
5000, OO0 600.
The amount of good these associations
have proven to poor people during the pres
ent year cannot be estimated, and, as the old
wear fades into the dim past, they will look
with gratelulnesS upon the opportunities
afforded by the societies to save enough hard
earned money to purchase their holiday
goods, or to begin the new year by making
the first payment on home that is to shell
ter them in future years.
Home-Builders by the Score.
The wage workers in PIttsburg and ALLIE
gheDy who have been enabled through the
building and loan associations to buy and
paw for homes, when otner plans and sources
of help had failed, can be counted by the
scores. The followers of all the trades,
clerks, professional, and even commercial
men bv the hundreds and thousands have
been given their start, i" in the matter of
laying in a stock of this worlds goods,
through the saving OF 10 or 10 cents week
Oh each share held in some association.
Building and loan associations may be of
various kinds, but the majority of them,
and. in fact, the most successful are OF ne
cessitv confined to two classes. The one,
established many years ago and conducted
on 4 plan which fixes both the value OF each
share Of stock and the time in which it can
l. l. 5S 41,a o1 III
and members joining between the time when
the series begins and ends must pay a sum
proportionately equal to that paid by any of
the other shareholders since the beginning
of the series.
In this as well as in all other kinds of as
sociatioas, shares mature when their par
value has been paid In, but whole series is
thus matured al the same time. When the
stock IN all the series has matured the asso-
citation ceases to exist. In other words, in
the old associations the stock must all be
taken at the same time, or the member must
pay up all back dues from Its commence
ment until the date of purchase. This Is
rendered especially necessary in the associa-
tions in which there is but one issue of
stock, aud no shares can mature until ala are
paid up in full and the association dis
selves.
Organized on a Progressive Plan.
The majority of the associations organ
lied within the last two or three years, how
ever, are based upon more progressive
and, indeed, liberal plan. Stock can be
taken at any time without the payment of back
dues. and any portion Of stock may be paid at
%T,r, hold
upon the maturing of other shares for GER
tiff cate of paid-up stock on his own shares but
is entir ed TO this, together with Semi-al aal
dividends, whenever his own stock natures
Some of the later associations have secured
perpetual charters and treat all shareholders
~ CO-pSrtrers in the concern. This has become
tie most popular plan, as it offers special ad-
vaEtaCes to borrowing stockholders Which can
no, be had in any of the older associations
While non-bOrroweri Is the man who always
makes the most money on his investment all
associations are conducted for the special bene-
mt Ci those VINO are compelled to borrow, ana
the association that can reduce the cost OF a
loan 10 the lowest possible figure is rhe aSSo-
Ciati"n that will have the largest membership.
To obtain loan III an old ASSOCIATION, menu
bers are usually required to bid iur it at a
regular meeting and the loan is awarded the
highest bidder. The premium is deducted
from the loan or added to il. as the case may
be- aud the borrower sometimes pays a high
prlce for his money. But the more modern
associations fix a premium for all loans, and
usually at 4 reasonable figure.
However, the plan has very little to do with
the success Of the association or the benefit
derived from il by the shareholders. There is
not an Association in Allegheny county that
will not willingly loan from 20 to so per cent of
the face value Of piece of property a first
mortgage, while many capitalists refuse to
give CUT over 90 per cent. Some of the associa-
uons nN their premiums and rate OF interest SO
low that by the time dividends are made the
actual cost falls below per cent.
Safety of Building Associations.
The safety of building and loan associations
cannot be disputed. They are chartered under
a special act of the Legislature All have a
rule prohibiting speculauons of any sort and
loans will not be made on property outside of
the county. This gives an opportunity OF having
all records of properties close at hand, and as
each association has its own attorney
these are examined before loans are
given ont. So. systematic has the ar
rangemenJ of the associations become that
no man need lose money by being share
holder. II misfortune oVertakeS man or cir
cumstances occur to render HIM unable to
make his payments, he has the privilege of
Withdrawing what he has paid in, together
with whatever dividends he may have been
granted. In this way, the association becomes
a bank with The assurance of absolute safety
and the advantages of dividends added.
The membership of all the associations is not
confined strictly to the industrial class of Deo-
pie, nor are they the only borrowers. Mayor
Gourley assisted in the organization of the
MOOGIn one OF Tue most SuCCeSSlu associations
in the city, and IL has among its members some
of the most prominent politicians of the
Seventh and Eighth wards.
The AUcanum Is one of the prosperous asso-
Citations. having been organized less than four
years. and possessing assets to the amount of
nearly $1,000 including over $50 600 in mort
cages. This ASSOCIATION has for members such
men as w. II. Dufell. treasurer of the Pitts
burg and Western Railroad: Job Ablet of the
STANDARD Oil Company: F. II. Torrens, general
agent of the Schenley estate: William r. Ford
collector of delinquent taxes, and many other
prominent citizens.
Banks for School Teachers.
Charles Reisfar. secretary of the Central
Board of Education, is also secretary of the
Fireside Building and Loan Association
which has among its members n any of the city
school teachers, who have taken this method of
saving their funds.
Henry Hunneshagen, Mayor Wyman's clerk
and number of other Allegheny politicians
help TO compose the shareholders of the
Garfield Premium No. 2 and the National
Premium No. j.
enthusiastic over The plan for saw
ing money afforded by building ard
loan. ssociaJions, and the German citizen who
does not hold shares IN one or more of them, it
is safe to say. has an insufficient income to sup
port his family.
It is estimated that more than half the houses
built during the past year are being paid for
through these associations.
People Join building and loan associations
for ali sorts OF purposes. The number of
The wife Of a wage worker from the Seventh
WARD bought five shares In tile Modern a few
months ago. The other day she walked into
the Office on Fifth avenue and gave notice that
she wanted to withdraw her money. saying to
Secretary McCrickert at the time, II have be-
come so tired OF buying my household goods on