The Washington times., 1895-06-30

became larger than individual capital
could well accommodate, and the success
OF the plan having by that time been fully
demonstrated, company was chartered
by act of the legislature, stock to the
amount of S66, 900 subscribed and a per-
manent business established. TIE amount
of capital has since been increased to
trifle over SIC, 600, and in addition about
S25 600 borrUwe ed money is employed.
THE operations of the Boston company
are conducted through q manager, who
seems to have full authority, subject,
L presume, to the usual supervision of
the Officers OF the company. He is assisted
by one or more appraisers, as well as
a clerk or two. All are salaried, and the
routine expenses of the company have
gradually attained yearly outlay of over
900. In addition, a heavy State
taX-last year it was 81 ,2O4 I2-is paid.
Yet the stockholders receive a regular
dividend of 6 per cent per annuin.
by the light of this experience I feel
warranted in saying that the loaning OF
money, at something like equitable rates,
on household furniture is feasible; that
the capital thus employed will earn a
regular dividend of per cent per annuTn,
and that to accomplish this only the rea-
sOnable capacity and caution employed
by the Boston company is necessary.
ITO insure capacity, a manager of
should conduct the placing of money Such
man, of course, viii bear in mind that
the security of loans must be his first aim,
and 10 secure that he can not do better
than initiate the methods employed by our
Boston friends
The applicant for loans must there give
his name, his residence and occupation;
must prove ownership OF the chattels
by exhibiting rCCcipted bills aud other
satisfactory means, aud must give the
name OF two reputable persons as refer
ences. If satisfied upon the points stated.
the manager or his assistant appraises
the goods and 4 certain percentage OF
what they would bring at forced sale
is then adya need, the loan being secured
by Chatlel mortgage.
LOANS ON DEPOSITED VALUABLES.
1T seems that in the early days of
the Boston Association loans were also
made on valuabies deposited with the
lender upon second trust notes, and the
like; but experience has demonstrated
that household furniture is the best Sc
curity to loan on and IL is the only security
now taken.
while commenting the practice of
the association quoted as to the placing
of loans, / do not advise that their some
what expensive admin 5 ira tive course
be folio wed. Our capital is sure 20 be
much smaller, hence our earnings much
less. and the fixed charges of our company,
iii my Judgment, should not go beyond
the items OF rent, stationery, fuel and
light, aud advertising. The manager can
make a fair compensation by being per-
mitted to charge a small fee for ap-
praisc!nent, and Il SmaliUr one for re-
uewaIs. IF the business should expand
to a degree that the manager should need
assistants. he will be able 10 compensate
them ont OF his increased receipts.
Feeling convinced that the proposed
loan association is feasible ard would
prove a profitable Investment for the
stocISholder, as Well as a practical charity
for it's patrons, / close my report by recon-
n.erdIng that immediate steps be taken
to become incorporated, and that sub
scriptons to the capital stock be invited. :"
The report is signed by August Donath and
Dr. ] NJ Gregory