Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1890-04-05
Communicated,

SOmmuntcdteus
Editor HERALDs
Messrs. e. l.. Bumpus and T. c. Buel,
representing the Washington National
Binding. Loan 6 Investment As&ocia-
ton, oil Seattle, have been in town this
week soliciting purchasers Tor their
stock. This Institution has an imposing
namc, and an imposing list of ttrrstaef,,
and, knowing nothing moro about this
particular concern, will OF course have
nothing to say as to it's stability, nor
the integrity of its management. L
gcSia, however, Ike to sae Il few words
to your readers ab6tt investment in
these so-called oNati3nar' Building &
Loan Associations. The fundamental
idea of the building & loan associations
is cooperation, and to maintain this
principle the system must be as simple
and Inexpensive as possible. We have
in this town a local association which
comes as near beng purely mutual as it
is possible to make it. It pays no trained
solicitors, no expert accountants, no rent,
no salaries except the noble sum of ten
dollars per month to its secretary. All
the profit there is in it goes right to the
shareholders. The money accumulated
is loaned here at home helping to build
up our town, the management is IN the
hands Of men we know and on whom we
can rely; men of our own choice; the
books, papers and securities are all here
under our eyes and open to our inspection
at all times. With the National" asso-
Citations it is entirely different. The
mutual feature must, to great extent,
be lost sight of, else why are they Or
gained? Why unless some one is to
make money out of it mora than his
mere share of profit as stock holder do
they send out agents all over the state
rustling up business? OF course they
pay commissions and salaries. Their
business is scattered and their system
intricate, necessitating travelling agents
and inspectors, and at the head Office &
skilled accountant. These Of course are
managed By high salaried secretary
Che viii be high salaried if he is compe-
tent to run such business) and the
whole thing is presided over by figure
head or two called president, vice-presi
dent, etc, who lend thoir names, per
haps for reconsideration" perhaps fol
humanities sake. The distant stock
holders can, Of necessity, know little oil
the Inward management of the concern
and can have practically no voice in the
choice of officers. AS an investment
then, it is certainly not as satisfactory
in the way OF security as our home insti-
tuition, and IN the matter Of profit it Is
equally unsatisfactory, for, to say moth
ing of the enormous additional expense
the interest they get is lower OF course
their great inducement is that they can
furnish more money than the local
associations. Perhaps they can, perhaps
they will, but those Of us who took
stock in & certain Minneapolis associa-
ton will be careful how We again invest
money on such elusory. promises.
Minneapolis is the home- o., NATIONAL
associations; of their leading companies,
one has come to grief, and the other has
provsd a swindle.
Willis S. Paine, late superintendant
of banking of New York state. while
praising the local system, condemns the
National" plan, and other able financ-
lers OF the East write in the same strain.
VIII not inflict quotations OF YOU, but
any OF your readers, who want to learn
more OF what is thought of these associ-
atoms in the East, can get some infor-
nation from me.
In conclusion, L would advise those
who are thinking Of investing in for
eign association to the neglect of home
institution, to study and investigate the
question before doing SO.
Yours Respectfully,
". V. WINDUs