Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-15
1,7S5,7Oo
Total number of shares. ...........
Total number of shares pledged for
OTHER REAL ESTATE COMPANIES.

In addition to the land companies not
tabulated there are number OF societies
which purchase real estate and dispose of
the same to their members. The land and
real estate companies are estimated to have
accumulated rom the payment Of dues at
least SIS, ,000.0 900. The item of 81, 125, $50 of
real estate on hand, in the estimate of the
], 200 societies in Pennsylvania, it must be
understood does not represent property OBJ
tanned by reason of foreclosed mortgages ex-
cept in very small degree. Most of the
societies are building associations in deed as
well as name, and their plan is to purchase
the houses in the name of the associations
and retain the title until the purchaser has
redeemed the same from the accumulation of
dues and profits on shares subscribed for.
The estimate of $40, 1866, 684 paid out in one
year for Withdrawals and matured stock is
largely under the real sum, for the reason
that many associations who keep their &C.
counts by the double entry system OF book
keeping close their matured share accounts,
on which loans have been made, by day.
book entries, and consequently the with
drawal of the matured shares does not ap-
pear in the cash account and is not included
in the figures taken from the printed cash
accounts OF the associations. The with
drawal and matured share account would be
nearer $50, 900, 900 for one year than $40, ,O0O,-
600. Some of the associations draw cash or
ders for all matured shares, whether they
are borrowed on or not the orders being paid
out as cash for matured shares, and received
again as cash in settlement OF mortgages.
BUILDING ASSOCIATION MoRTG AGES.
A conservative estimate ofrecorded build,
ing association mortgages in Pennsylyania
would be $50, ,0OO, 900. A mortgage placed
upon home that was free from encum-
brance, and the money thus obtained con-
sumed in living expenses or lost in specu-
lation, becomes debt in the iul sense of
the uncomfortable term. 1t is possible and
probable that some of the building society
mortgages on record represent this class of
indebtedness, but only as an exception and
not as rule.
Generally speaking, the building associa-
tion mortgage is not a debt, but emphati-
cally creation of new wealth, and these
mortgages are entitled to be excluded from
all estimates made of the Indebtedness of
people. Even if this position is denied it
cannot be contradicted that, if debt, the
burden is not owing to few capitalists, but
to 261 500 persons. of whom 81, 900 are the
borrowers and part owners of the same bur-
den.
The creation Of wealth lies in the fact, for
example, that 81, 900 persons were, before
they became members OF the associations,
paving $12 month for rented houses, or
81, TAG, 400 per year. They form associa-
tions with 1So. 900 other persons who have
previously obtained homes and agree to de-
posit various sums per month and hand the
money over to the borrowers to build homes,
agreeing, substantially. to receive from the
borrowers monthly contributions of sums not
greater than borrowers were paying as rent.
SYSTEM OF EARNING HOMES.
One half of the amount paid in by the
borrower represents profits of the capital