The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1890-05-21

if he does, he is certainly more credu
lous than the majority of even thu
"%gullibles."
| notice in Mr.. Ariail's quotation
from Mr.. Power striking evidence tina.
MIR. Power did not understand thu
working of the association in whose
services be was engaged. Il learr
that lie has quit them for some caus
nneSplained.) MIR. Power says: "The
fifty cents a share premium, charged
the borrower, goes towards reducing
his loan, and the expenses of the Sec.
rotary and Treasurer, who are the only
salaried officers in tue association ,
Mr.. Ariail, as President of a loca1
board, ought to have known bette,
than this, but it seems that he does
not understand it either. On this sub.
ject | beg to quote from the hand book
of their oUn organization "The loan
fund consists of fifty cents a share per
month, and all interest, fine, premiums
and profits of all kinds, and no part OF
this fund can he used for expenses Of
any kind whatever, unless taxes have
to be paid thereon Is not the con
hict between the two statements APP.
parent to a fourteen-year-old boy p
and is it not evidence that neither Mr..
Power nor Mr.. Ariai! are competen,
authority on the subject of their own
institution?
What else is there to say7 Certain
ly no other argument to refute since
Mr.. Ariail and his Secretary, by 81.
lence and quotations, concede the Elk.
pense fund scheme; that is, they con
cede that ten cents per share pei
month, is deducted from each share
holder, for the expense fund. Well,
this is one-sixth-165 per cent taken
from each mans payments, and to en-
able him to start even again with his
investment he will have to earn 20
per cent. Besides this, a tax of forty
cents per share is levied at the outset
as an initiation fee. This is the case
in both institutions. In orr local this
has thus far more than paid our ex-
penses, and is likely to pay them en-
tirely in the future. With the "na.
~tionals" this sum goes to pay agents for
organizing. Nor is this all. I am re-
liabiy informed that the Secretaries of
the local Irrational" boards are paid
two per cent of the money that they
collect. If these things be correct,
bow is it possible for the stock of such
a scheme to mature as quickly as one
that practically has no expense. l
pause for a reply.
Another thing to which I wonld call
attention is the very complimentary
terms in which President Ariail refers
to Secretary Sullivsn's "lncid expIa-
nation" of the Superiority of national
over the local, so far as cheapness is
concerned Now, does Fir. Ariail
really endorse these fgures?-
Can it be possible that he, too, at.
tempts to argue a question of which
this very endorsement clearly proves
his i]gnorance9 l am actually panied
to think so, but I shall make no other
display of his lack of information, than
by referring the reader to Mr.. Sulli-
vans article in T0wn Talk and my re-
ply thereto.
Is it necessary to say more7 l
think not, yet have a few more words
to say. National Building and Loan
Associations are new institutions; none
of them have as yet, I believe, ma
tured any stock; hence the question
as to whether they will ever mature, is
a problem that can only be solved by
the future. Locals are over one hun
bred years old; hundreds of them have
matured their stock, and Mr.. Ariail
will himself acknowledge that their
past, regardless of what the future
may bring, has been one constant
round of successes. Every State in
the Union encourages locals, but many
of tue States are passing stringent
laws against the nationals, requiring
them to deposit with the State Treas
urer the sum of 100000 as a guaran-
tee of fair dealing. Why is this?
The answer is obvious, that the States
passing such laws believe them to be
wild cat institutions.
| beg to refer Mr.. Ariail to an able
article in Scribner's for May, entitled
cooperative Home Winning" I Of
this as more "expert" testimony,
and if he will not accuse me of fabri.
it, 1 will beg to quote a few
lines from it:
~ have received many requests, while
this article, to sound a warning
the so-called "nationals,n which
ire trying to use the good fame of the
cooperative associations to build
up a business, whose real object is the ac-
luisition of profits for a set of officers. L
10 not think the cooperative associations
have much to fear from them, except the
confusion that may exist with a large part
If the public about the two systems, caus-
the actually cooperative associations
share any discredits or disappointments,
hat must sooner Or later fall to the 9TH
rs. Any man ear see that a national as
ISOLATION with large expenses for office
hire, agents, ETC., while the risks on their
oans must be infinitely greater, cannot be
profitable to its members as one whose
a few hundred dollars will cover.
The nationals are still young, but the