Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1894-02-10
yERKrs prrrsguRGH PA-En

1ERkES, PlEISbOh tA-En-
closed please find certificate aud cir
cular OF the Fidelity Building Loan
aud Investment Association, OF
Washington, ID. c. There are vari-
GUS rumors out about the standing
Of the above concern, also about
the amounts that viii be paid on
each share after subscribing for two
or more yeare. There are many sub
scribers here, and all that i have
spoken to are under the impression
that all dues paid la with six per
cent annual interest will be returned. |
Are we falsely informed or7uot 2"
The standing OF the Fidelity Build
ing Loan and Investment Assocla-
ton, of Washington, d. O., among
the members of the building and
loan fraternity, is bad. Its stand
ing with the public is NIL, as the con-
Germ operates chiefly among the
poorest classes with a system that
Is not adapted to make it conspicu-
Gus outside OF the courts. A perusal
OF the prospectus and certificate will
explain why the promoters could
scarcely expect to prosecute theiI
scheme among very intelligent peo-
pie. The printed matter Is mess oil
contradictions, in which the true
character OF the contracts is speci-
/ ously yelled. For instance, the APP
| plIcation blank, certificate and the
circular that is most publicly distri-
J buted, give q positive declaration az
{ to time OF maturity, the exact Ian
guage being This CERTIFICATE Is
I6UARANTEED TO MATURE IN lO2
/ MoNTns, PROVIDED THE ABOVE comb
rioNS ARE COMPLIED WITH The
'sabove conditions" refer to c0ntiDu-
ed and prompt payments of % cents
q week ON each isbare. II bylaws
contradict this assurance, iDasmucb
as they stipuIate that when the &C
foundations received and the profits
thereon reach q SUN equal. to the par
value of the shares in any series, the
mortgages of the borrowers are can
celled and non-borrowers are paiC
5000 q share for each share held by
chem" OF course, the members viii
not be required to make their paw
ments beyond the time mentioned
d viz, 102 months, but the Circular
: state In several places that the ma
tured value is the par value that is
5 that the member will draw SOC
leash for 1902 paid In at the end o
az IO2 months. The intent to deceiv
5 is manifested all through the printe'
matter.
The printed matter Gays 3K per CT
}, of the par value of the shares Is re
= served each year for expenses. Th
Is par value being 5000, this mean
L Sc. so per year, or so per ct. OF tn
stock payments. Thus it will be see
e that the management proposes Z
{. pay four for one In 1Oz months, wit
n u legal reservation that they wi
(. pay IL when one fourth of the stoc
& payments earn 1t, and no sooner
X The association loans one-half it's n
ceipts at 10 per ct. At 10 per &C. il
e stock would De worth $lOU IN 10
u months; after which the membe
e could wait another several years 70
y. his promised profits. This will
D disputed on the ground that the co
u Germ will earn good deal more tina
sI5 per ct. under its plan of heav
t. fines and iorfeit6res, especial
ID among the ignorant and improvl
IA dent classes which it cultivates. /
fact, the system Is defended on Il
TX plea that 1t induces the poorest clas
=. es of people To save their "wasi
Va lngs," and that 1t is worth so per c
TO make these weekly collections an
lie take care of them. When one
oil these wasteiut persons can save U
ID Tor two years, ne can draw out, il
M wishes. one. half of his 's~astsDgs,
Il &c. - nes, ct cetera, and this is /
much money ahead for the poo
t. wasteiul member. If he cannot kee
70 up his payments for two years, c
a. forgets his obligations for as long
X period as six weeks, he forfeits all b
mas paid in. This Is a wonderful IL
re centlve TO save money. These pee
al pie cannot borrow, say the manl
OF gers, because they have no securit,
,c. and under this system 1t will take
al long time for q member to say
enough equity to become entitled {
is loan. Anls is the professional d,
he tense of the system, out We think IL
courts will SIT down on IL. The ma
nd ayers are now in court defending
ks second action for the appointmeI
OF a receiver on the grounds OF inso
vency. In the first ac6ion, the pro.
M was nOu cuAOCtAs OWAnk " u
r. detective character OF the complain
DIV In regard TO the withdrawal vail
is of the stock, it is SIMPLY the los
ok fund with 4 per ct. interest for &
rer av, + age time. The contracts say
IN. and the by laws say So There is
he paragraph in the prospectus refer
eId ing TO monthly Investment stock
,es on which the member is allowed
MS withdraw the full amount of
ra- stock payments. The paragraph
de- evidently thrown in to mislead t
mo, wet ky Investment members,
an there is no doubU as to the week
NE victims. TIA bulk of the stock SO
' q is weekly payment" and as Oh
by half OF these payments are devot
red to expenses, it 10 unreasonable to
-up sumo that the promoters would
or down into their pockets and retu
Trit the withdrawing members somethi
u which they are allowed under I
1fn contracts to absorb in the mann
the stated. A company which will /
the pair your capital 90 Per ct. for