Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-01-11
TnEYHELp THE POOR.
BUILDING AND LOAN ASSOCIATIONS
or RICHMOND AND THEIR WORK.
low she system opsrnses--1ts Benefits TO
Individuals and the Community
Figures OF Interest,".

Among the institutions OF Richmond
that are rapidly growing in popular favor,
and dcservedly 80, Is they are In more
ways than one the friends of the poor man.
ere che building and loan associations.
The history Of the rise and progress OF
these associations and companies and the
system under which they are now con.
Quoted constitute striking illustration OF
the conservatism of the community.
When FIRST the movement was put on foot
here II had uphill work TO accomplish.
The people did not understand the opera
Siof,s Of such corporations and were 10th
10 take advantage of their features. They
looked uoon the idea as "new-faneied
and preferred 70 stick 10 old methods
Hoveycr. every man who became interested
In ono Of these institutions became an ad-
vcrtisement for il. Thus gradually as the
building -and-loan idea began TO ina'eriaiize
La the shape of neat. comfortable houses:
owned by those who without the aid OF
kuch concerns might have been renters all
their lives, the now method OF securing
homes and helping 10 build mp acity began
20 acquire great popularity and assume q
most important place in the financial and
real estate transactions Of Richmond.
In 1875 there was only one OF the. present
style of building and loan companies here;
Now Richmond has eleven of them, each OF
the aggregate of whose monetary. opera
tions is q most potential factor IN con-
ducing TO that distribution of ownership
OF property which is the foundation OF
the SOLID prosperity of any city.
A CENTRAL PRINCIPLE.
Different associations and companies
have different features Incorporated upon
the Central principle, but the Central-the
main. the cardinal-business and benen-
cial principle is the same with all. That
principle aims to enable and encourage
renters TO become owners OF homes, either
by purchasing houses already. constructed
or by building new ones with money Sc
cured from this source. The company Is
a mutual banking corporation which prac!
tically assumes mortgages given on I'M
proved real estate by its stockholders and
opens the way for them to pay on these
mortgages in monthly instruments, with
legal interest added.
HOW IT WORKS.
In many cases none but stockholder
can share in its benefits, and he becomes
member by paying an admission fee and
small annual dues. In other words it en-
sbles the stakeholder to become house
owner by paying in instruments upon his
stock what he would pay as rent Tor
house for a given period-plus legal inter-
est.
TO illustrate: A man purchases a. num-
Der of shares of stock in an association:
He desires to lift mortgage or deed OF
trust upon a house that he has already
bought but has not paid for or TO build a
new house. In the one instance the asso-
citation or company lends him the money
90 clear of the mortgage and takes the
mortgage itself. In the other 1t lends MIN
the money to build and secures itself by
deed of trust. In both cases, however,
payments are made by instruments upon
his stock with interest added, and when
his stock shall have been paid up he re-
ceiyes q clear deed 10 the property.
A study of the workings of the system,
which is outlined in general way above,
will demonstrate that the benefits IT con-
fers upon both the individual and the
community at large are many. 1t fosters
the home feeling, inculcates Judicio us
saving. stimulates social ambition, tends
20 develop the good citizenship which
goes hand in hand with the possession of
ones own vine and fig-tree, supplements
the banking capital of the city. increases
the city's taxable values. beauties vacant
places, and produces contentment.
In the issue of the Dispatch Of January
lst and I'd some figures touching the
several building and loan associations
of the city were given, but further details
will not only prove interesting but enpha-
size what has been affirmed of and claimed
for them.
THE OLDEST ONE.
The Richmond Perpetual Building,
Loan, and Trust Company. Of which Mr..
i. ID. Starke is president; ID. Mitteldorfer,
yice-president, and William Lovenstein,
cashier, was organized in 1876, its author
tied capital being $1,000. 900. OF this
F.iO0. 900 has been subscribed and S250,00
has been paid up. Since the company be-
gan business loans, many of which
have been redeemed, of course, have been
made to the amount of 81, 027, 800. The
total number of loans made is 1875, half of
which, it is estimated, were used in build
ing new houses. The majority of the
balance was devoted to raising mortgages
on old houses.
The Virginia Building and Loan Com