The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-08-09
trick Of springing a warrant to detain Rem
shaw that he broke his usual custom of act
ing as bondsinan.
ELUDlNG THE issue.
Judge R. B. Seymour Lectures
on B. & L. Methods to Ex-
euse the Syndicate.
JERSEY CRY. August s, 1894.

80 ~ NfN
and Building Syndicate with a malicious
virulence that is wholly unjustified. You
have allowed whoever writes up these
articles to misstate the facts in every
case which they nave written about, and
to make malicious slurs which are who'll
~ unealed for. | only ask for the Syn
dictate a fair statement of the facts, and
the evidence in every case. Fair play
entities them to that much
The Mutual Land and Building Syn
dictate is a regular Building and Loan As
ISOLATION, incorporated under the laws of
this State. Its method of business is car
ried on as all Building and Loan Asso-
Citations are. Building and Loan Asso-
Citations are cooperative associations,
whereby the members contribute GER
tain payments week. or monthly, and the
money thus paid in as dues is loaned to
the member according to rules and re-
gulat1ons. If the par value of the shares
IS two hundred dollars, and one hundred
persons take each ten shares, they would
be each entitled to a loan of two thou
snd dollars. As the income if they Were
the only members would one thousand
dollars a month. it would take two
months before the funds would allow one
person the amount of his loan. If at the
end Of two months, after the making of
the frSt loan, the ninety-nine othe men,
bers should Immediately demand back
the payment of the money paid in by
them as dues. how could any Building
and Loan Association refund them their
money? No Building and Loan Asso-
citation could do this, neither can the Mu-
tual Land n Building Syndicate do it,
nv uOcS L ld1III 10 de dDIe u.
Some Building and Loan Associations
in order to supply the money demanded
by their members for loans have gone to
the banks and borrowed it. Such a pro-
ceedinS is contrary to the very principle
of the cooperative Building and Loan
Association, and there may be a question
whether banks have a right to make such
loans. However, there is no understand
ing in any Building and Loan Associa-
ton that will COMPEL it, when it has not
on hand the necessary funds to meet the
demn6C n If tn 90 To he M riot or fO H.
the banks to borrow any money. The
Mutual Land and Building Syndicate has
not borrowed money from the banks, but
mas depended upon the dues of the mem
bers to meet all awful demands upon it.
In an ordinary Building and Loan Asso-
citation a member joining is told hat his
shares will probably mature in about ten
years, but there is no constitutional pro-
vision which requires the association to
redeem its shares at par within ten
years , or at In other time. If the shares
should run for fifteen or twenty years the
member has no redress. He must go on
paying his weekly or monthly dues just
Mutual Land and Building Syndicate
makes is different in this respect that
the Syndicate guarantees to redeem its
shares at par at a specified time. There
are a number of series running from the
shortest, which is five years, to the
longest, which is twenty years. ANY per-
son wishing to become a member of the
syndicate can choose any series which he
desires to be clasSed in. If he chooses a
five years series the Syndicate contracts
with him that if he pays his regular dues
winch are specified in demonstration and
bylaws, then at the end of five years the
syndicate VIII pay him the full par value
OF his shares. The Syndicate cannot
keep its agreement with persons Joining,
1t IN good faith, unless the persons Join
ing 1t carry out their part of the contract
III persons can join and draw out their
money whenever they please, how can
the syndicate, or any other association
redeem the shares of those members who
continue their membership, at their par
value, at a specified time? The Svndi-
cate also agrees that if a person desires
TO Withdraw his money, he can at the end
OF three years withdraw seVent-fve per
cent. IN eash, or take a certificate for the
full amount paid in, which certificate is
payable, with interest at six per cent, at
the date OF the maturity of the series
there wrong about this?
a person has no reason to join any
Bulldlng and Loan Association if he
does not intend to continue in it for at
least three years. When he joins the
syndicate he knows of this provision,
and as he must select which series he
wishes to become a member of, and by
pay MIN the full par value of his shares.
at the expiration of the serial year. why
should he complain if the Syndicate re-
fuSes to pay him any portion of the
value of his shares, before the period Sc
leeted by himself for final settlement?
The Syndicate has, since its organiza-
lion, CdIIlGQ out every contract to the lar-
ter, which it has made. and Won cannot
snow a single instance o the contrary.
II your advertising agent should bring
you in a contract for a years advertjsing
ana pay you the money on it and you paw
over to your agent, his COMMISSIONS
would you be willing at the end of a
couple OF weeks, to have the advertiser
come in and demand the right to can
Gel MS contract, and compel you to nav
back all the money which he had given
your agent for the whole years con-
Ildtl Z - 4 mini Won nlIl $50 a.
SO, and would say, you had carried out
your part OF the contract so far, and
We're ready to carry it out altogether,
and that the advertiser must abide hv,
the contract which he had made. No
KIND of business could be carried on
under any other system. If a man paid
allow him at any time he choose. in a
week or a month, to tell you to cancel
nus subscription, and pay him back the
balance of the years subscription? As
in every Building and Loan Association
happens there are many persons desir-
ing to obtain loans, and there may not
pc money enough on hand to make more
than a single loan, some rule is required
TO determine the priority of the loans. In
TINS vicinity, the usual way is to put up
the loan at auction, and the member who
bids the RICHEST gets it. The members
who are outbid get left by this plan,
Just as well as by any other. Many OBJ
that it results in extortion. Thirty dol
lars per share has been frequently bid
at sales in Jersey City. This means that
the member gets 81, 700, and gives a mort
gage on his property for 50 1000, and paws
interest for ten or twelve years on the
$500 which he never received, and be-
fore his mortgage can be cancelled, must
pay this extra $500.
In order to avoid this, the syndicate
by its constitution and bylaws, provides
that oans shall be made according to
the dates at which the applications are
filed. No bonus is paid, but the bor-
rover gets the full amount of the loan
for which he gives a mortgage. These
rules and plans are clearly set forth in
the constitution and bylaws, and there is
no reason why they should not be I'M
derStood by any person, before he deci-
DIES to join the association.
l hope you will examine the constitu-
ton and bylaws and see if there is any
thing that is unjust or unfair, or is a
swindle upon any one. 1t is easy to
abuse people and call names, but no re-
putable paper ought to allow its columns
to be used for malicious purposes.
The Mutual Land and Building SYN
dictate depends, as all other building as
sociations do, upon the dues of its raa-1-
bers provide funds for its loans. Only for
the abuse which it has received from the
pl ess, it would nave been in a much
more prosperous condition than it is,
and many of its members who are anxi-
Gus to obtain loans, would have been
Accommodated. BY reason of the false