The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1891-05-22
Measured hr Their Own Rule.

The following ILLUSTRATION" OF Cne
plan of operation of the so-called Ma
tional Building and Loan Assocla-
ton is copied from letter addressed
to the Stockholders OF the southern
Mutual of Atlanta, Ga, by the Sec
retary and General Manager, VIM.
G. Hale. This Association is now So
Letting the patronage of Columbia.
LAS an illustration, so shares OF
stock upon a payment of $50 per
month or a fraction of over $20OO for
about seven years will entitle the in
vester to $1,000, in cash, about doub-
ling his money. Now if this party
should desire to withdraw his stock
after paying.twelve months dues, he
would be entitled only to the amount
paid into the loan fund. He has made
II payments at $50. each, $3.50, OF TINS
$500, 90 goes into the loan fund and
with profits thereon can be USED
for no other purpose than loans. me
$50 goes into the expense fund when
must defray all expenses OF the AS
ISOLATION.
During the first year we have the
use of only $500, for the average time,
or 6 months and can therefore make
| but small earnings upon it to offset
this expense of $50. AT the end OF the
second year we have had $3OO ana
profits, loaned out at full interest and
the earnings of $500 paid in during
that year for the average time. AT
the end of the third year we have had
5000, and accumulated profits out at
! full interest and the fourth year SOU,
aud accumulated profits besides the
$500, rayments during the year,
while the expense does not increase
but remains at $50 per year"
hn oil GfRfnnRnt
Mr.. Hale to his stockholders,
we see that for every $500 in.
vested $50 goes to the expenses OF
making the investment; which ls
lust 20 per cent of the amount inves-
ted; and to this add the stock fees OF
81 per share for so shares, is $llO cost
! to the member for investing for him
| $500. Now take your pencil, look at
| this statement and calculate the
money paid in to Mr.. Hale; de-
duct $50 stock fees and $50 per year
expenses, and estimate your f1rO600Ce
profits out of the remainder.
Aside from the statements OF the
soliciting agents and by the printed
estimate furnished by the General
Manager, looking at these facts as a
plain business proposition, when 40
YOU think an investment that costs
more than 20 per cent per annum 10
make, will pay you the handsome
profits which Nationals promise?
Remember all estimates OF time OF
maturity and big profits are based
upon pure superstition, as no Ma
tionaI has been able to prove the cor
rectness of their estimates, Tor NO
National has yet carried out to com
pIetion their estimated results so TAI
as have been able to ascertain: rake
the figures given above, $50 pei
month for years makes $I44O; ad0
to this the membership fees OF sol
and YOU have $1490, amount paid Ill
to this Association. Now take oul
$50 per year and the $50 stock fees
and you have $3.50 which goes to pay
the expense of investing the remain.
ing $1,000 for you. Now if you shoulC
need this 1920, or be forced to with
draw, according TO the terms OF YOU
contract they will pay you only $I344
which will make you net loss o
Sl46. II YOU had invested $50 pc
month in the Maury County Build
ing and Loan Association, at the enc
of the 4 years you could realize $l1!l,
20; in favor of the Home INSTITUTION
$471 30.
The reason we have used the plan
of the Southern Mutual of Atlanta
H.,
other Nationals, now doing bushes
N Columbia, is because this is tn
only one that has been brave am
= frank enough to publish to thei
stockholders the inside working
of the Association, so far as we haV
z been able to see. All OF them ar
operating on this plan or one yer.
much like it. They are all birds OF
I, feather, so far as being run in the IN
3 terest OF the officers, in furnishln
: nice expense fund from which t
t draw salaries and other incidentalf
= He who helps his neighbor help
= himself. By investing your none
e in the Home Association you bel p t
o build your town and county, kee
: your money at home, where ever
\ dollar, including the fees and expens
q fund, is redistributed among our ow
e citizens.
o For further information abou
e Building and Loan Association ma
q tiers call TO see
d c. w. WITHERsPoON, Sec'ty.
u may22-1t.