Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-21
FINANCE AS a SCIENCE.
A striking ~ Practical Iliu'''ss'on OF
safe Investment.

There Il perhaps no question connecteo
with financial operations more inteIes',r
than that involved in what may be ternea
tho evolution Of the building associa,ion
or company. The building company OK
today in rs highest devesopment, 70
gether with the other featnrts thae nav
been Incorporated upon IL. " the expan-
s;on ~ a nrimltiye principle Of invest
ment into an almost exact financial SCI.
encc, by which the largest amount Oh
proft IA made under ALMOST auso-
iuteiv safe restrictions ard amcnaoiIlly
10 the laws governing the accretion'. 10
weld the largest amount Of profit. ~ IS
combination of savings institut'on. /"
building and loan company, shn tno luu
from winch Impracticable and risky, iac-
fora have been eliminated, and IN wnich
those known to be sound and practicaoIe
are retained. II il the CONTAMINATION oI
experience in dealing with principle, 80 As
10 obtain the highest accumulation Oh III
,erest through several channels, ana az the
same time reduce the charge for conduct
ing the system to the minimum.
AsPIESDID EXAMPLE.
A splendid example OF the working OF
this system-of the crystallzatlon OF Va
rious sources of profit tor its stockholcersI,
ia found in the United Banking and build-
ing Company % this city, which on tne ISL
of January placed dividend OF 10 per
cent. to the credit of its stockholders.
This company was organized only ABOUT
t,vo years 400. and is now one of the most
substantial institutions OF ITS character III
the country. It's chief object as briefly set
forth "Is to receive deposits and savings,
TO loan or advance money to lts sharenoiu-
ers. aud to aid them IN acquiring rear e.
tate. building houses and making M
proyements thereon. and devotlng the
money ordinarily paid Tor rent 10 buying
homes for themselves and families. .
This is done by issuing series OF stock OF
the par value Of 500, on which monthly
PAYMENTS of 60 cents per share are made.
Not less than five shares are issued 10 any
one person, aud on each share the STOCK
holder paws an admission fee OF II. But
what is the practical operation! Expert
ence shows by actual calculation more
certain than the actuary tables OF ne
insurance that the shareholder IL seldom
called upon 10 pay moro than % per
cent. of the face or par value of his stock.
He has no death-risk TO encounter. no ext
cency of an epidemic. and has absolute
security in the fact that the company IS
loaning his money on real estate, and his
profits at maturity of stock amount 70
from IS to 100 per cent, or, III other "orus,
he about doubles, through premiums, IN
terest, and his share III the profits, the
money he has paid in. An estimate on ten
shares OF stock calling for eighty-three
monthly payments at So per month and
membership fees would require deposit
extending over these elghty-three months
of s49s, tor which the stakeholder would
draw from the company when his STOCK
matured $1,000.
AsAFE AND SURE FUND.
L., d, f,tyI ,trnD xVhtRl no can
borrow money to buy or build house, or
If he does not wish 10 do this can, IN
effect check ont to double amount OF
deposit when the stock has matured. lie
can also, however, as simple out-Ot-
hand investment, buy stock by paying 800
a snare cash down, and need not bother
himself any more about the matter az ne
will receive cash dividend OF per cent.
on his Investment semlannually, ana MS
share of the profits over and above the
expenses of the company. VIII mature ms
stock. At first glance these prohts look
10 be erroneous, but il should be remem-
bered that every dollar of the stock
holders funds Is beng turned over an the
time at the lowest possible cost OF hand
ling. but never gets away from the basis
OF real-estate security. and therefore ~ not
subject TO loss account. Tho little guide
book of the company, which can be had at
their office, No. S2l east Main street, !,
well worthy of the study of one who would
lay UP a store for a rainy season. IN conn.,
dence that IL will not be swept away.
In addition 10 its building end loan fea-
lures, this company is now receiving de-
posts of 81 and upwards. upon which
per cent. interest Is allowed.