Mexico weekly ledger., 1893-09-21
MEx1CO MISSOURI THURSDAY, SEPTEMBER 81 1898
20 THE STOCKHOLDERS
or the Mexico Building and Loan As.
ISOLATION.

(
or the Mexico Building and Loan As.
ISOLATION.
MEXICO, Mo-, Sept. 15.-In an
swer to Col. L. Hord's article in
the daily Intelligencer Of Sept. IA,
under the nom de plume of "Stock-
holder" we give you the following
facts:
When the Association started in
business in 1885 it adopted a set of
bylaws, in the main from one of
the old Associations IN st. Louis,
and worked under them up to the
present year, when, according to
same, the first series matured and
was paid of. Then we made the
discovery which other Associations
had made, that a conflict existed in
said bylaws which would make it
mathematical impossibility to con-
tinue under same and not cause a
loss to remaining stockholders, and
that the retiring Of stock borrowed
on in first series had caused loss
of between one and two per cent.
The Directory ordered all withdraw
ais to be settled for accordingly, set
ting the rate at fourteen per cent,
that being the per cent. earned to
that date which was in compliance
with the bylaws at the date "Stock-
holder served notice of withdrawal,
and he received all dues paid in by
him and call profit accrued thereon,
less the proportionate charges and
expenses"
Up to the time the last annual
statement was published the books
showed an earning of 16 per
cent. per annum. A subse-
quent estimate showed a loss
of between one and two per
cent, caused by reasons given
above, and all stock was subject to
same. In getting at the earnings
of Building and Loan stock no at
tention can be paid to any statement
or estimate made at any previous
stated period, but just what the
books show to be the condition of
affairs of the Association at that
date. Anyone that will take the
trouble to compare statements made
for the last four years will find that
the earnings decreased over one per
cent. Why? First, because the
interest law of the State, which is
| 8 per cent, brought our interest
down one per cent. Second, because
the premiums paid have not been
near so large; hence it reduced the
earring capacity of the Association.
The Directors of the. Association
have corrected the bylaws SO as to
prevent any loss by the future ma
turing of any series. Also they have
adopted the plan used by over
SO out of 100 Associations in this
State, and instead of paying a with
drawing member earnings in full
up to date of withdrawal, will only
pay 6 and Z per cent. thereby securing
those who remain to the end and
bear the expense all through.
There has always been a differ
euce of opinion existing between
building and loan authorities as to
whether all or a portion of the
earrings should be paid to parties
withdrawing before maturity. The
main reason set forth by the former
was that it encouraged Withdrawals
thereby decreasing stock to that
extent that at the maturity of tht
series not a great deal is left to bt
!, retired. All of which is true. Or
| the other hand it is claimed tina
those getting entire earnings would
not bear any subsequent loss tha
might reduce the per cent, ano
{ further that those that do not wisl
!, to stay through and help to bea
the expense should retire with
reasonable interest, and a portion
of their earnings be left in to Sc
. cure those who stand to the end
The latter plan is almost universall
3 in use.
VI The Bylaws, as changed, wi
soon be printed SO hat all stock
holders can see same.
VI Hoping that this explanatio
. will be satisfactory to "Stockholder
t who was paid IA per cent on hi
investment, We are, Yours Trul,
!. J. NJ. POLLARD, Pres.
d J. A. GLANDoN, Sec'y.
e "