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 chstom of act
ing as bondslnan.
HLUDING THE ISSUE
Judge R. B. Seymour Lectures
on B. & L. Methods to Ex-
euse the Syndicate.
JERSEY cry. August 3. 1894.

You have pursued the Mutual Land
and Building Syndicate with a malicious
virulence that is wholly unjustiied. You
have allowed whoever writes up these
articleskt to- mfsstate the facts in every
case which they have written about, and
to make malicious slurs which are Who'll
~ uncalled 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
this State. It's 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 weekI or monthly, and the
money thus paid in as dues is loaned to
gufations. 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
person the amount of his loan. If at the
end of Two months, after the making of
the frstfloani, the ninety-nine othe mem
Beers should Immediately demand back
thee ayme of the money paid in by
2them as dues, how could any Building
land Loan Association refund them their
eiationaeould do this. neither can the Mt-
tual Land and Building Syndicate do it,
nor does II claim to be able to.
Some Building and Loan Associations
in order to supply the money demanded
by their member for loans have gone to
the banks and borrowed it. Such a pro-
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
dam dd n & A L0D = y h. 100 -lr1 4 Al
the banks to borrow any money. The
Mutual Land and Building Syndicate has
not borrowed money from the banks, but
has depended upon the dues of the mem
bers to meet all lawful 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 an 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 lust
Mutual Lane 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 # he AVS his regular dues
which are specified in demonstration and
bylaws, then at the end of five years the
syndicate will 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 it carry out their part Of the contract
II persons can join and draw out their
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 Syndi-
cate also agrees that if a person desires
to withdraw his money, he can at the end
OF three years withdraw sevent-five per
full amount paid in. which certificate is
ayable with interest at six per cent, at
the date of the maturity. of the series
which the member has Joined. What is
there wrong about this?
A person has no reason to join any
Building and Loan Association if he
least three years. When he joins the
Syndicate he knows of this provision
ana as he must select which series he
wishes to become a member of. and by
that selection requires he Syndicate to
pay him 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
lected by himself for final settlement?
Inc syndicate has. since it's organiza-
$500 oaA SO1l1 act U IIl6 leI-
ter, which it has made, and you cannot
SHOW a single inStanceso the contrary.
II your advertising agent should bring
you In a contract for a years advertising
and pay you the money on it and you paw
over to your agent, his commissions,
would you be willing at the end of a
come in and demand the right to can
Gel his contract, and compel you to paw
back all the money which he had given
your agent for the whole years con-
tract? / think you would refuse to do
SO, and would say, you had carried out
your part of the contract so far, and
were ready to carry it out altogether.
and that the advertiser must abide by
the contract which he had made. No
kind of business could be carried on
under any other system. If a man maid
you for a years subscription, would YOU
allow him at any time he choose, in a
week or a month, to tell you to cancel
ms 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
THIS vicinity, the usual way is to put up
the loan at auction, and the member who
bids the highest gets it. The members
who are outbid get left by this plan,
Just as well as by any other. Many OBJ
| Ject to this. system, because they say
that it results in extortion. Thirty dol
lars per share has been frequently bid
at safes IN Jersey city. This. means that
the member gets 81. 700, and gives a mort
gage on his property for 81, 900, and pays
interest for ten or twelve years on the
H. $500 which he never received, and be-
fore his mortgage can bencaneeIled, must
thistektra $780, I'd h!uc 2aGf II
4 .yIp order tosavoid this,l Thea syndicate
by its. constitution ~aud1bylaws,l provides
tthat? loans shah be made according to
44thes dates iatj which the applications are
Il hted3 No jbonus is paid, but the bor-
rower 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 un-
derstood by any person: before he deci-
DIES to join the association.
hope you will am 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 it's columns
to be used for malicious purposes.
The Mutual Land and Building Syn
dictate depends, as all other building as
seciations do. upon the dyes of its man
beers provide funds for it's loans. Only for
the abuse which 1t has received from the
pr ess, 1t would have 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
statements circulated by the press in re-