Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1894-02-17
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ID C. There are vari-
Gus rumors out about the standing .
OF the above concern. also about
the amounts that will be paid on
each share after subscribing for two
or more years. There are many sub
seribers here, and all that i have
spoken to are under the impression
that all dues paid Ian with fix per
cent annual interest will be returned.
Are we falsely informed or7not2"
The standing of the Fidelity Build
ing Loan and Investment AssOcia
ton, of Washington, ID. c., among
the members of the building and
loan fraternits, is bad. Its stand
ing with the public is NIL, as the con
Germ operates chic fly among the
poorest classes with a system that
Is not adapted to make IL conspicu-l
Gus outside of the courts. A perusal
of the prospectus and certificate will
explain why the promoters could |
scarcely expect to prosecute their
scheme among very intelligent peo-
pie. The printed matter Is "a mess OF
contradictions, In which the true
character of the contracts is speci-
ously yelled. For instance, the APP
| plcation blank, certificate and the
circular that is most publicly distri-
buted, give positive declaration as
to time of maturity, the exact Ian
guage being This CERTIFICATE IL
GUARANTEED TO NATURE IN 1O2
MONTHS, PROVIDED THE ABOVE CONDI-
TIONs ARE COMPLIED WITH" The
sabove conditions" refer TO contiDu-
ed and prompt pay ments OF 20 cents
a week UySach tsbore. TIE bylaws
contradict this assurance, lDasmuch
as they stipulate that when the ac-
cumulations received and the profits
thereon reach q sum equalto the par
value of the shares in any series, the
mortgages of the borrowers are can
celled and non-borrowers are paid
5000 a share for each share held by
Uhem." OF course, the members Will
not be required to make their paw
, ments hey ond the time mentioned,
viz, 1O2 months, but the circulars
state in several places that the ma
tured value is the par value that il,
} that the member will draw 5000
cash for 1902 paid In at the end of
lO2 months. The intent to deceive
is manifested all through the printed
matter.
= The printed matter says 81 per ct.
Il of the par value of theshares Is Tt
e served each year for expenses. The
par value being 5000, this means
SO 90 pee year, or 80 per ct. of the
stock payments. 4 hus 1t will be seen
that the management proposes to
! pay four for one IN 1O2 months, with
: a legal reservation that they will
Z pay tC when one fourth of the stock
: payments earn il, aud no sooner.
n rne ASSOCIATION loans one-half it's re:
ceipts at 10 per CT. At 10 per CT. its
' stock would De worth $500 In 102
;. months; after which the member
= could wait another several years fol-
his promised profits. This will bt
;, disputed on the ground that the cor
r, Germ will earn IA good deal more than
y Is per ct. under it's plan of heavy
q fines and forfeitures, especially
among the ignorant. and improvl-
> dent classes which it cultivates. IL
70 fact, the system is defended on TIA,
r plea that It inuuces the poorest class
lie es of people TO save their "wast.
J. ings," aud that il is worth 90 per CT
'e TO make these weekly collections ant
"a take care of them. When one q
these wasteful persons eau save VI
~ for two years, he can draw out, ii b
" wishes, one half of his "wastings,
~ less his fines, et cetera, and this is 8,
much money ahead for the poor
Id " asteiul member. III he cannot keel
IN up his payments for two years, o
~ forgets his obligations for as long
period as six weeks, be forfeits all b
has paid In. This Is wonderful IL
- centive to save money. These PEG
AT pie cannot borrow, say the mana
re gers, because they have no security
er- and under this system il will take
Fir long time for "A member to saw
he enough equity to become entitled
is loan. Ihis is the professional dc
~ tense of the system, but we think I'll
'on courts will sit down on 1t. The ma
iii ayers are now in court defending
nv second action for the appointmeI
ST of a receiver ON the grounds of inso
be- vency. In the first action, the pros
be cution was non-suited, owing to Il
detective character of the complain
In regard TO the withdrawal vail
of the stock, it is SIMPLY the loo
the fund with per ct. interest for Il
the average time. The contracts say
urt and the bylaws say SO. There Is
ige paragraph in the prospectus refer
ing to monthly investment stock
IA on which the member is allowed
bis withdraw the full amount of b
ITO stock payments. The paragraph
evidently thrown in to mislead I
=, wee ky Investment members, b
there is no doubt as to the week
to victims. The bulk of the stock so
yer is weekly payment" and as OF
i ien half of these payments are devot
to expenses, it 10 unreasonable to
the sumo that the promoters would
,e a down into their pockets and retu
the the Withdrawing memberssOm
lite, which they are allowed under t
the contracts to absorb in the mann
ana stated. A company which will II
: De pair your capital so per ct. for I
The penses, would not hesitate to impI
some one elee's capital 100 per
in order to return you the
amount you have paid IN; but tn
the 8 no object in doing aDytLi
ar 20 magnanimous as that, unless
d In were doue as an advertisement. 4
lon Fidelity management is not dol
mat business for it's health. We adv
us you and your members to b.
a "a -