The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1894-06-19

Sundays issue OF THE TIMES by Lawyer
Q. 81. Vines, the representative of sew
oral out Of town building and loan 1850
Citations, the Rev. D. G. Moomaw, who
from his own admission states that he
belongs to the "anti" movement, hands
THE TIMES tho following article upon
their side OF the question:
Tho readers of THE TIMES Of the 18th
instant and especially the members OF
the Anti-Building and Loan Associa-
ton, were much interested and edited
in the publication OF the interview of it's
reporter with C. II. Vines, attorney OF
the building and loan associations, on
the occasion of his recent mission to
New York.
1.-The comment of Mr.. Vines on the
organization of the Anti-Building and
Loan Association and the kindly refer-
ence to 1t by the editor call for an ex-
preston of our views thereon; but what
is said here is simply an expression Of
the mind OF the subscriber and not of
the anti association.
81 will first call attention to the
causes that led to the organization.
When the movement OF the Building
and Ian Association first began to
crystalize here in the form OF lending
money on the security OF deeds of trust
on real estate and the assignment of
stock In the associations very few, If
any, of the borrowers comprehended the
methods employed in the ndministra--
ton of their complicated machinery
They were assured by the agents OF the
association, all OF whom wero honor
able men, that the rate OF intcrest
would range from to 10 per cent. and
that the maturity OF the stock would
not exceed eight years, some five years,
some six, some seven.
They were answered that they could
repay the loans at pleasure after the
lapse Of a given date, usually not ex-
ceeding one year, on specific terms not
OF special hardship to the borrower
While business conditions were In nor.
NAL state tho borrowers wero able to
meet these monthly dues, but whom,
through the active agency OF the money
power at the country, OF which these as
scciations are vital factor, the single
gold standard was made the dominant
feature in the financial policy of the
Government, the whole business system
Of the country was precipitated to the
verge OF ruin and the revenues accruing
from the property on which the associa-
tions hold deeds Of trust have fallen to
an average OF one quarter Of the original
amount.
Some OF the associations are consid-
crate enough Of the serious depression
of values and the loss of current income
to withhold foreclosure temporarily,
while others follow their rules and by
laws with cast-iron vigor. They answer
the plea for money by saying: II we
have to carry you over the period of
stringency, we will compensate ourselves
by selling your property Some of the
borrowers sought relief by attempting
TO borrow from the lawful loan compa.
MES at six per cent. and pay Off the
building and loan association claims.
The following case will illustrate
the result OF such an effort: A person
borrowed $4,000. out Of which the asso-
citation retained S225. He paid TWENTY
two monthly insJalments of SI7O each,
aggregating S3,74O. He wanted to OBJ
tain terms of full settlement, and in
reply received statement showing an
Indebtedness OF S9,036 2S-that 10, Sl6l
more than TIE original loan after the
payment of the S3,740.
This illustrates the methods of the
associations in dealing with their bor-
rowing members. Again. they attempt
to force us to insure our property in
companies in which they hold stock or
with which they have contracts for a
partition Of the profits Again, they
know no mercy in the imposition OF
fines at time when the common in
stincss of humanity awakens some pity
even in the hearts of professional
burglars, and point US relentlessly to
the terms OF the contract. Like Shy-
lock of old they demand the pound of
flesh.
again, while banks and all other
monied and mercantile and commercial
institutions are adapting their affairs
and exactions to meet the severity of
existing circumstances by reducing
their rates of discount, and extending
time and modifying terms Of settle
ment, and show decent commendable
regard for the golden rule, rule that
is given by the wisest of political
economists for the guidance of honor
able men, these building an loan asso-
Citations show them selves oplivious of
any such sentiments and make their ap-
peal to the cold logic Of the law.
Nov the purpose Of our association
Is to make common cause in our effort to
save our humble homes and our hnrd
earned savings from absolute destruction
and not to avoid compliance with the
conditions Of our contracts, as they
should be mercifully and equitably
interpreted. 1t is simply an organized
protest against organized robbery. This
does not refer to associations to which
1T does not apply and l am glad to certify
that there are honorable exceptions.
They tell US, according to Mr.. Vines,
that they will not invest their mOney