Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-30

munities where certain number of share
t honders are 70 De found; who can 4. act as loca
husbands the savings of the masses in all sec
tions of the country. with some restrictions.
OPERATIONS IN THIS SECTION.
The local associations naturally feel the en-.
| croachments of the Nationals They borrow
and lend in the same community and local pros.
perity or adversely or variation in rates Of in
terest affects it both ways. On the other hand
the foreign associations select especial fields
| for their work. The organization which is at
| present under a cloud is a legitimate concern,
| being on the roster of the official organ of the
National Building and Loan Associations. The
one represent operates in Pennsylvania under
4 State license being chartered under the strict
| law of Illinois. The State license gives stock
| holders and the State government legal rights
Sod the All Sur oGms sc Officials
| local treasurer is bonded in the sum
| of 5000. We place no loans in the South or in
Western towns OF less than 1900 Inhabitants.
| Our organization has 600 stockholders in Pitts
| burg McKeesporters carry 900 shares, and we
have loaned So, 100 there in the past ten DAYS
Homesteadors carry 2l5 shares. Braddock 300
rules as local associations but we only loan so
per cent of the value of the property. which
must first be approved by three appraisers after
local attorney has examined the title. The
stockholders finally pass upon the loan, and if
objection be made, It is withdrawn.
ORIGIN AND DEVELOPMENT.
1t seems rather strange that Pennsylva-
MIA, the home of building and loan associa-
tions cannot boast of national concern.
The reporter was shown the roster of ma
tional associations, as published in the
National Building and Loan Herald, of
Minneapolis. 1t contains the names Of 125
concerns, and only one-located in the new
State of Westinghouse labeled doubt
full" But Pennsylvania is not represented.
Chicago claims II, among them the one
which now figures in the police courts here
The following facts, CLEANED from the Of
fetal organ, shows the origin and rapid de-
yelopment of these concerns:
The national application of the permanent
building and loan plan originated in Minnesota
nve years ago. Locals originated in England
IN l1s2 and were transplanted to America in
porated in cG%PanK Was 1850 dSor ,Ssre
were 40 in operation, 10 of which were in Min
neapolis and lin st. Paul. To-day there are 40
in force, out of possibly LIS that have been IN
corporated.
STARTLING STATISTICS.
All parts OF the country are now represented,
except New England and the States of Penn
sylvania and Ohio. At the present rate of in
crease there will be $50 in operation by New
Years. From such data as the organ of the
associations has been able to command. these
record of growth to date (April 1S90):
Shares Tn ;niI S Soo @ VO0
ohares III ...o w OOO
Paid-up capital (assets) ...........s Is, 0oO 900
Contributing capital (annuar ........ 45, 000 900
Subscribed capital. 800, OO0 900
The above shows the wonderful growth of
the national movement. Statistics also show
that the local societies have exhibited their
greatest growth since the advent of the
Nationals.
In commenting on the growth of the move
ment, the journal quoted saws:
The figures given in the foregoing table will
probably not be high enough to suit some
tastes, but they are safe. A certain company
advertised not long ago: I'VE can loan SS5 600
MONTH" Their receipts to-day are Sl40 LOO
month. and this is not the largest in point of
membership.
RUNNING THE GAUNTLET.
Continuing its comments, the official
journal says:
The pioneers in the national movement are
now going through much the same experience
that the early apostles of life insurance were
subjected to, with the additional disadvantages
of having a much stronger and better organ
lied army of business rivals arrayeQ against
them. While it may be true that some of the
national associations have been started by in
experienced men, and that few of these asso-
none too honest individuals, yet it must be
remembered that they are mutual companies
under the law, and that the power Of such as
are availing themselves of the statutes framed
and license granted to mutual building and
loan associations, for improper purposes, can
be wrested from them and their adventurous
careers cut short.