The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-07-19
WHAT WAGE-EARNERS DO
They Can Buy HcmeS by Paying Monthly
What Would Otherwise Go for Rent.
Plan That Is Meeting with Success-Long-
Time Loans Discontinued Prosperity Of So
cieties through Which People Save Money.

A plan which assures the rapid develop
ment of new additions to the city, and ut
the same time provides most practicable
means of securing homes, was set forth In
an article in the Journal several months
ago. 1t has been tried with promising re-
suits. It was suggested that improvement
companies be organized TO furnish lots and
build houses. allowing the purchaser to
select plans and specifications. And in
stead of the usual demand Of sew
eral hundred dollars in advance
o requirement. which G comparatively
small number are prepared TO meet
to divide the payments into monthly in
stallments within the reach of wage-earD-
ers. Thus the first payment would be but
little above q months rent, and insure
ready sale to reliable purchasers. The
privilege of having the houses built ac-
cording to their own ideas would create in
the buyer interest identical with that
Of the person who furnishes the money.
Some time ago the scheme was inangu-
rated in a section of the northeast part of
the city, and that locality will soon be
their own wine and fia-tree." Having
thus anchored as property-owners they
will naturally have q deeper interest in
the affairs of this city of homes. Among
those who have made this favorable start
are six printers employed on the Journal
George Bundy. William Cutshall. Will
lam Evans John Folger, A. q. Goodwin
and Samuel Leffew. The finishing touches
are now being put on their houses, and sew
of Ia adxr uah IN
These cottages have from tive to seven
rooms and cost from $500 10 $1,000. The
monthly payments required are from SO TO
SIG. but each can increase this amount and
cancel mis- indebtedness as fast as circu1n-
stances permit. The location of the prop
erty. the neat appearance of the houses
and all things combine TO make the deal a
source of satisfaction and Will inspire the
purchasers with determination 20 pull
through to the last payment.
The Indianapolis Saving and Investment
Company has Just closed the most profit
able six months business in its history.
John A. Reaume, the secretary. has given
the affairs of the society unremitting. per-
sonal attention since elected to the office
some months ago. and the handsome in
crease IN profits is q tribute to his ability.
One year ago. according to the reports of
the association, the members were making
3 cents per week on each share of stock.
Jan. last this profit had been increased TO
cents per week per share. The report for
ii cents per week on every share in
force. and the secretary feels conf
dent OF raising this rate to 10
cents per week by(Jan. ]. 1892.
There 10 sos; 600 out on first mortgage on
real estate, distributed among nearly $50
borrowers. Almost all this money has been
invested in new homes The new series to
be started in September bids fair to be the
largest in the associations history. The
rate of profit this year has been 9 $40 per
year the earnings will aggregate not less
than IA per cent.
The Hoosier Building and Loan AssOcia-
tion. after giving the system of long time
and easy payments q thorough trial, has
decided to abandon the plan and confine
itself hereafter to charging premium and
interest over and above the amount paid
in for dues. instead of deducting the
amount from the dues and crediting the
balance upon q reduction of the debt. The
determination to change the plan on the
part of the directors was caused by the
long time necessary to pay out under the
old system. As long a time as sixteen
years would be necessary. it was figured,
TO mature loan on this method. The
many chances of loss taken in running a
loan for 80 long time. together with the
accompanying loss of profits from the
failure to get large compound interest had
its influence in making the change. This
leaves one less association making loans on
long time and easy terms, a fact much TO
be regretted by the army of borrowers,
who are anxious 10 build homes costing q
fair amount of money and who cannot af
ford to pay sum per week larger than
rent.
The Indiana Savings and Investment
Company. of this city. has issued it's fourth
semi-annual report. The statement shows
q healthy growth for the past six months
and an excellent rate of profit to
the shareholders. The income from
running stock. paId-up stock and
on loan shares aggregated S43. $3.50.
In interest. premium and pass books the
amount o. IS, 903.24 was realized. Includ-
ing the balance brought over from 1880 the
total receipts OF the society were IS, 0lS.S 81.
During the six mont tbs Sl2. $50. 81 was loaned
members upon stock and first mortgage on
real estate, and temporary loan of s., 200,
repaid. In dividends. q. 252 70 was paid Oh
stock, being 4 per cent, with a surplus car
ried over. Up to date ISL, 074.49 has been
loaned to members, almost the entire
amount being FOR new homes occupied by
the owners. The society does a conserva-
tive business that is both safe and profit
able.