The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1890-12-10

Put into Effect:
Inquiry among the working men of
Roanoke by u TINES reporter developed
the fact that they arc very much in
earnest upon the subject of acquiring
homes, and they have talked much of
late of the sccond-mortgagc plan sug-
gcsted. in TIE TINES u week or so
since.
Since the subject was first broached
many of the more thoughtful of an in
tcllgent class have expressed the
by which those who work for wages can
at once secure u home, and on the most
equitable terms.
Yesterday 4 skilled mechanic had the
following so say to a TIMES reporter,
accompanied with his views of the plan
of remedy, which is added:
Labor is becoming disconnected ana
restless here because of the inability to
get homes or to rent ut reasonable rates:
as matter of fact, it is impossible to
rent q house on any terms with rcas-
enable prospect of keeping it for any
length of while, as all houses now erect
ing arc put upon the market for sale as
soon as built. Sac
IF we have to pay dear for house rent
and the other necessities oflife we must
of course have wages sufficiently high
to provide these things. While it it is
not the desire of organized labor to
mako demands for higher wages yet the
, aim of all organizations of that nature
Ills to Sec that men secure enough for
their work to enable them TO live unon
their incomes.
My plan Of relief is about as follows
Let any man OF family be enabled to
| get IL lot and have a building aSsocat ton
advance Il sufficient sum to build Il neat
and substantial homo. il being agreed
/ upon that the house shall cost not less
than a certain stipulated sum: then the
building association is to be secured by
! first mortgage upon house and lot,
and the owner of the lot be secured by
Il second mortgage upon both. Tho
/ house is To be See cured by an insurance
upon il 10 its cost price.
"Whiic this seems to give all the bone
fit TO til man who takes advantages OF
the pi:in. since il contcmplates that ii
the builder default in his payment to
the building association the latter SHALL
sell both house and lot. and reimburse
itself out of the proceeds before the lot
owner comes i'll for payment, it is not
actually true.
I'm the first place, The history of all
cities Will provo that improved property
has an actual value removed from its
speculative value. Thus: When house
is built for sale there is added to the
cost of the building profit on that cost;
i'll addition. the lot upon which it is
built takes on an additional value from
the very fact of its being built upon.
For example, house costing to build
$500 is put upon IL lot, the price of which
/ is placed AT $500. Now when the com.
plcted house is ready for sale. it, with
the lot, is placed upon the market at
$1,000, which includes builders profit
and tho uncarncd increment OF the land
suppose he who buys this house and
lot early defaults in his payments. Tho
property is sold at auction and brings
Only $1,000. This leaves an apparent
loss of 800 less whatever payments Tho
buyer has paid on account minus tho
amount of the payments which should
be credited to rental.
'Remcmber. however. that the origi
nal cost of house and lot is but 81 100
If the sccond-mortgage plan wcr,
adopted in Roanoke the builders prof
would insure to the man in whom tn,
title Subject to the membranes. o.
coursc) rests, as would so the i'm
earned increment of the land.
NOW. the plan pursued by the ordi
nary building association is to have
advances repaid at the rate OF one nc
cent. each month Rcckoncd each hous,
so built would cost $500, the month";,
payment thereon would be IS: taxes an,
lnSurl Xyniil1 hpi.,.r tl,ic a., =. N
month
The payment on account of the 10
must be taken into consideration Sa,
two per cent. each month is required TO
these payments, and place the price o
lots at $500 as above. This would b,
So per month on the lot account. T.,
this must be added IN average of 81 pc
month for interest, which would brine
the total amount monthly to be paid on
for the first fifty months 2l7 per month
or less than the ordinary house rent.
for. and for the next fifty months $40.
III the plan were made possible b,
those land owners who have the ma
terlal interest OF the city at heart, mex
spring would witness the erection of a
least 200 houses and the advent int,
Roanoke of certainly 1000 women ant
children, who would not othcrwis,
como. This would prove stimulus {,
trade such as las never been cxperi
cncod. Money which is now sent ava,
to support the families of mechanic.
and others would be spent here: TIA,
workingmcn would become moro thrift,
and Industrious; they would become
eontcntcd also, as they would have tho
strongest reasons to cry down agitation
which would even threaten to clos,
down the shops and factories And an