The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-04
AND LOAN.
The Proposed Taxation of Prepaid
and Paid-Up Stock.

RC ~
and Paid-Up Stock.
To the Editor OF the Indianapolis Journal:
There are two sides to this question. In
the association with which the writer is
connected the holders of prepaid stock are
classified as follows: Eleven persons hold
only one share each. nine persons hold
only two shares each, eight persons hold
only three shares each, five persons only
four shares each, three three persons only
five shares each, five persons only six shares
each. one person nine shares and six per-
sons ten shares each. OF a total of fifty
five owners OF this class of stock thirty-six
hold five shares or less. while forty-eight
persons of the ~fifty-five own ten shares each
or less. Several things became very appar-
ent from the foregoing exhibit. One is that
the prepaid stock is in large request by
wage earners and small investors, including
WIDOWS, young men and young women, who
wish to invest their small savings in this
way. They look to the safety of the in
vestment and the cash income rather than
the profits. To tax prepaid stock and not
the running stock would be unequal, for the
holders of the latter class Of stock, as a
rule. have paid in as much or more than
the owners of the prepaid stock. The effect
Cor installmenO stock and curtail the sales
OF the prepaid. The many cogent reasons
Tor eXemptIng running stock from taxation
apply with almost equal force in favor OF
exempting also the prepaid stock, as the
foregoing clearly SHOWS. ALQ, then, there
is this additional argument: The receipts
for prepaid stock constitute a very large
proportion of all the income of many asso-
Citations and enable them to accommodate a
much larger number of borrowers. Any
legislation unfavorable TO prepaid and paid
up stock Will greatly eurtall the volume of
business done hereafter and disturb the
building association business in the State in
various ways. The associations will have
TO readjuSt the business to the changed con-
ditions, and the coming season will witness
the erection of q much smaller number of
homes than for many years past. TIL fear
Citations will absorb any considerable
amount of money of capitalists is unfound-
Auditor of State. The contention that the
building associations SHOULD be held to what
some are pleased to call the original plans
in vogue twenty-five to fifty years ago is a
'back-number" argument. Most notable and
valuable improvements have been made in
loan business in recent years. Why should
the associations be restricted to the clumsy
methods OF a by-gone age These improve
lines of business, and are greatly to the adj
vantage of all concerned. The writer wishes
to thank the Journal for its editorial, Let
Well Enough Alone" albeit it seems a little
off on the question of taxing prepaid and
paid-up stock. Let our lawmakers ponder
well any proposed radical legislation affect
ing such vast and farreaching interests.
Let the peoples bank
Wabash. Feb. 2. .an
:. An Unsatisfactory Experience.
To the Editor of the indianapolis Journal:
The building and loan associations of the
State of Indiana are called the poor mans
friends. May God pity such friendship! In
attractive circular they present you their
plan, proving, if their figures are to be be-
lieved, how you can pay for your own home,
just as you pay rent, and as easily. l have
had a bitter experience with such a COM
pany. ! took a loan out of an association
- -: ~ 81 -. - so 49, 49,
Sept. 1, 1893, to Dec..33t.s, 1894, 1 have paid
in to their cashier the sum of $195 in dues.
Out of this amount they have credited to
the principal of my loan the enormous sum,
including dividend. of s51.53 I, leaving the
amount represented by interest at y143. AZ,
or at the rate OF nearly i i per cent. per
ward of this taking q pound of flesh
they demand immunity from tax. At this
rate a man would see his grandchildren be-
fore he would own his home. In our gas
cities thousands of workingmen have awaited
themselves Of the prisllege q extended
by these public benefactors- BY dint of
economy a worker buys and pays for a lot:
then a building and loan association kindly
steps in and builds his house, and he has
nothing to do but pay his dues and in a few
years he owns his home-or the sheriff has
senerously sold It for nm IN addition to
county, State and municipal taxes, which
are dear enough. and the infamous Bar
Iett law, which has robbed many d man of
his home. Thus It is cheaper to rent. And
if the factories close or sickness comes and
the dues are not met, foreclosure, ruin and
expulsion from the home YOU were prom
Used. If the Legislature can assist these
popular servants in any way it certainly is
their duty. If not, let them turn their heads
in pity while they pick the pockets of the
wage Garner and steal his home. / write like
a Populist, but l nm not one. i am interested
in seeing the lawmakers legislate for the
people, not the corporations, and if the
power of the municipalities are not limited
they will soon be paving our back yards
and sidewalks for us. while we are owning
our homes through the building and loan,
all of which, as suggested by the old fable,
lis fun for the boys, but hard on the frogs"