Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-04-18
ON SOLID GROUND.
SOMETHING ABOUT ONE or RICH
MoND'S MOST PROGRESSIVE
INSTITUTIONS.
The Old Dominion Building and Loan As
soc'ation-sIethods OF Accountable
tlon and Investment

The Old Dominion Building and Loan
Association was organized in January, 1890,
with Hon. ]. Taylor Ellyson for president;
Norman V. Randolph, ESQ.,, viee-president;
Carlton Mccarthy, secretary and treasurer:
b. Rand. Wexford. Esq. attorney, and the
following Board of Directors: Hon. J.
Taylor Ellyson, Norman V. Randolph,
John b. Purcell, John s. Elicit. AMI Frank
T. Sutton.
The original authorized capital was
s2.OOO,OOO and was thought to be ample,
but In the short space of four months the
entire amount was taken and an increase
OF capital became imperative. The charter
limit was therefore extended. and within
one year the subscribed capital reached
the handsome sum of S30O0,OOo, and con-
tlnues to increase steadily. The author
lied capital is now $40. 900, 900.
The organization Of the association was
inspired by the fact that a million of dol
! lars had already been permanently with
drawn from the State by foreign associa-
| tons and might be partially recovered by
| O home organization. The promoters OF
the enterprise hoped that for the future
] this drain upon the people of the State
| would be prevented. Their hopes have
been almost completely realized. aud to-
| day no association ranks so high in tho
confidence of the people of Richmond and
Of Virginia as The Old Dominion of Rich
mond.
The business Of the association IS the
| well-tried building-fund plan, pure and
| simple, tci0hoia any Of the dangerous and qtes-
tiondble attachments Of Insurance, banking, or
speculation. il aims 70 do two things |
mainly-to receive and care for small sums
OF money from many persons. which being |
aggregated. Is loaned in large sums 20 |
few borrowers, and is secured by unques- |
toned FIRST mortgages upon real estate |
worth on the average twice the amount |
of the loan.
ACCUMULATION.
The method pursued by the association |
tor tho accumulation OF funds may be |
briefly stated as follows
ANY one becoming a member pays an |
admission fee OF 81 per share and every |
thirty days thereafter GO cents per share |
until maturity. Thus o member taking ten
shares pays $40 admission fee and So per |
month dues. And presuming that the
stock natures in seven years (the maturity |
period indicated by years of experienced |
he will pay in q total Of SJ0S and will re-
ceive therefor ~ 900. This statement ex-
plains the plan of the fnS'dlmeni stock
suited TO the use Of persons desiring to
save small amounts at stated periods.
In addition, for the convenience of per-
sons of large means. another form OF stock
is sold at $50 per share. upon which no
further payments are to be made and on
which the association paws the holder
cash diridend Of $3.50 PEI share every six
months or SO per share per annum, which
is per cent. per annum. At maturity,
that Is TO say when ordinary running stock
of the same date Is matured, this stock
would have 20 its credit, in addition to the
per cent. already paid. 500 per share.
"A fnF /
ready pad TO the 500 and the result 10 $50
or gain of 100 per cent. in seven years.
Considering the fact that the investment
in this case Is as safe az anything can be
that is subject 70 human limitations and
mutations, the returns are all that could
be expected by any reasonable investor.
Still another form of stock is sold at $40
per share. which is subject to no further
charges and which entities the holder to
no cash dioideJd, but natures to the tull
value Of 800 per share. The security TO
the holder is, as in the case Of the other
stock. solid real estate.
METHOD OF INVESTING.
Turning from tho method of accumu-
lating to the method of investing the state
ment may be briefly made as follows: Per-
sons owning eligible lots borrow suti-
clent sum 10 build and mortgage the
,ohole 10 secure the debt. Others holding
proyements will greatly increase the reve-
nue borrow 10 make the needed i'm
provements and secure by mortgages;
others still, oftentimes men of consider
able wealth in valuable and improving real
property, needing ready money for new
enterprises or advantageous purchases,
borrow the cash from the building fund.
IL can be easily demonstrated that
building-fund association is benescent in
its results both from the standpoint Of the
man who puts in his small savings and of
him who uses IL for investment purposes.
But the great public benefit arises from the
fact that the small surplus Of many per-
sons of very small means Is aggregated,
and appears in the form of taxable rGhies.
The loose coin in the pocket, heretofore
contributing nothing to the support of
governments. is transformed into dwellings
and stores and factories, or villages and
towns and becomes at once the ornament |
and the strength of the Commonwealth.
Two significant facts attest the value of
these associations 10 the communities in
which they are located. Legislatures re-
fuse 10 tax those within the border of their
own States and practically prohibit the
entrance. for business, OF those from other
States by enormous taxes or by requiring |
heavy cash deposits. The Legislature,
therefore recognizes the fact that tho
home institution gathers in and trans
forms into property the IDLE money OF the
people and keeps IL at home, while tina
outside corporation drains away and d.
verts forever the surplus money Of the
State. These home institutions are pTac-
tically the only agency for counteracting
the immense flow of the money Of this
State to the North aud West in the shape
of fire and lfe-insurance premiums,
and in countless other forms more
unremuneratiye and less apt ever to return.
1t may be well TO remark that the tide Is
turning and the rich man of the North and
East aud West. weary Of the shifting for
tunes aud direiul calamities OF the old
time money centres, turns to theSouthtor
financial calm and good returns. Our
home institutions are ready to receive his
investments and enrich him without I'M
poyerishing our boundless natural wealth.
The association no longer urges its stock
upon tho public. but presents its claims as
an established and successful institution
10 the consideration of those who desire
safe and profitable deposit tor their savings
1 er..a V.N l