Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1891-05-23
GENERAL ITEMS.
about Foreign BuiIding Associate

About Foreign Building Associations.
The Philadelphia Times, which has
done more than any other single paper
in the State to expose the fallacleS and
bring to punishment the projectors of
these mushroom concerns, the Nation
al Loan Il Building A Associations, which
are Springlng up all over the country,
in its Saturdays issue lifts the veil
from the American Building and Loan
Association of Minnesota. The Amer
lean is one of the original and
largest of the national swindles that
promises such large returns and is To-
Gated in the most thriving city Of a
new State where money commands a
high rate of interest and where it
should have succeeded if success were
at all possible The State bank exam
iner finds foreclosed loans of $3l 800
on which there will be Il loss of
100000. This is an unparalleled
shrinkage in IL time of financial quiet
But here follows the weak spot of the
concern. The net receipts for the year
1890 from interest and premiums on
loans. the only source of profit to the
shareholders. were $l30.6 Cps and the
expenses for the year $l4S. 495, or
$3.50 more than the earnings. This
loss had to be paid out of the share
holders monthly dues, thus impairing
the original capital to that extent, to
which loss should be added the shrink
age of 100000 above given. The
Times then explains where the money
went: the salary of the president was
6,034.S6; of the secretary, S., l67 H {;
attorney, 81 7O3.50 aud treasurer.
s.. So 81; $47.33 Ct was charged to
the salaries of clerks and other office
expenses; $l3,S02. % to legal services
in addition to the salary of the associa-
ton attorney, and $l3, l6S. 60 to agents
for renewals. The association was
managed for the benefit of the officers,
attorneys, clerks and agents, instead of
the shareholders, and they proved
themselves quite capable of managing
it in their own interest exclusively.
From the nature of such Associations
there must be large crop of salaried
officers and agents who absorb the
profits of the concern and failure
when dupes cease to be duped, is
inevitable. Unlike life insurance,
where persistency benefits, here it
means absolute financial loss. The
Times then goes on to contrast this Ma
tional system with the local Building
Associations of its city, so largely IL
city of homes--the homes made possible
by the local associations. Taking
them for u type it says the expenses
are but $500 Il year. of which the
Secretary is paid 5000, the balance
being for rent, light, stationery and
fuel. The stockholders meet monthly,
pay their dues, transact all their bust
ness and pay their secretary only for
the work he does. Upon this system
and economical management that
great city Of homes has been built and
is still building. The Commercial has
ever been the foe of corporations of
whatever ilk seeking foothold in our
| borough or county, and refers to the
facts presented above in support of its
course. These facts are imdisputable,
! and brush aside all the objections to
what MeyerSdale so badly needs. a
| local Building Association. This will
come it must come, for out OF this
local financial union will proceed the
strength to rear new affairs in many
/ happy homes. That once in successful
operation the future of Meversdale, in
that line, is assured, n eyersdale
| IOU3DppeinL