Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1895-01-30
ASSETS.
JOHNSON CITY, Tenn, Jan. IA, 1895.
To the Stockholders Of the Magnetic
Building and Loan Association.

JOHNSON CITY, Tenn, Jan. IA, 1895.
To the Stockholders of the Magnetic
Building and Loan Association:
Herewith is submitted the Sixth
Semi-Annual Statement of the business
of your Association. A full aud de-
tailed statement of the receipts and dis
bursements of both loan and expense
funds from the commencement of bust
ness on January 2, 1892, to the close of
business on December 81, 1894, and q
general statement of assets and liabili-
ties on December 81, 1894. This state.
ment is worthy Of your careful consid-
Grafton. The expense fund shows econ.
omy in expense Of management. The
salaries of the President, Secretary,
Attorney and the General Manager ag-
gregated S7,O54 IL, or $2,351 81 per an.
mum for all salaries.
LOANS.
The total number of loans made is
SO, aggregating $685. 1855 rs. Twenty
loans have been repaid, to the amount
Of $50, $50; mortgages for five loans have
been foreclosed, leaving 81 loans in
force, aggregating S43.1 16 76. The re-
Gently appraised retaliation of the
mortgaged property is $50, 300, or 80 in
security for each dollar loaned. We
hold fire insurance policies on this
property to the amount of $50, $50, or
III 30 in fire insurance for each dollar
loaned.
ARREARAGES.
We desire to call particular attention
to this item. Notwithstanding the fact
that 80 per cent. of our loans are made
on johnson City property, and that this
town has received a very, very 'black
eye" from the panic, we have only
1862 81 due for accrued interest and
premiums on all our loans, and not all
of this from Johnson City members.
This demonstrates that our directors
have scrutinized closely every loan ap-
plication, carefully appraised not only
the property, but the character of the
applicant and his ability to pay. Our
johnson City loans are to some of the
best men and on the best ''close in"
business and residence property here,
and as a rule the borrowers pay their
monthly installments with a miracu.
lous neutrality-suspicious. the gen.
orally depressed financial condition of
this community.
FoRECLosED.
In the past three years we have had
five mortgage foreclosures. These were
loans made in the early life of the As
ISOLATION and to members who at the
time were in reasonably prosp ,rous cir
cumstances, but who have since sue
cumbed to the panic. We bought in
the property for the amount of our debt
and have it rented now for considerably
more than enough to pay insurance
and taxes. We will be able to dispose
OF all this property without the loss of
a dollar, and we hope at a nice profit,
as soon as there is any improvement in
general business.
BRANCH OFFICES.
While the home Office of this Associ-
alton is located in johnson City, we
have nine local boardsor branch offices
all in East Tennessee-as follows:
Newport, Rogersville, ~Jonesboro, EN-
breville. Elizabethton. Erwin, Allen
town, Doeville and Chucky Valley.
Stockholders at the branch offices have
contributed about 35 per cent. of the
paid in capital. Stockholders at the
home Office have contributed about
60 per cent. The remaining 8 per
cent, is contributed by outside stock
holders scattered over five different
States.
THE PANIC.
On January /, 1894, the management
congratulated themselves and the mem
bership that we had passed through
the panic unscathed. In this we were
q little TOO previous" for the panic
really did not hit US until February
and March, 1894. and then it came like
a%cyclone. Nearly one half of our in.
stalment stockholders and quite a mum.
Der OF those holding paid up stock filed
withdrawal notices. In fact, the As.
ISOLATION had a run The directory ap.
piled the entire receipts to the payment
OF withdrawing members, but this was
not sufficient to pay all Withdrawals
promptly. After applications for with.
drawal stopped coming in, a meeting
OF stockholders was called for October
ID, 1894. At this meeting a full and
detailed statement of the affairs
OF the Association, together with the
report Of the State Examiner,
was submitted to the stockholders,
which demonstrated that the Associat'n
was absolutely solvent and the assets
amply sufficient to rover the with.
drawal value of all outstanding stock
certificates and leave a handsome sur.
plus. This was 50 gratifying to the
membership that more than So Der
cent. of those who had filed withdrawal
notices Immediately cancled their no.
tees, and mere than 95 per cent. OF
those who had not filed notices signed
an agreement that they would file none
for at lest six months. So that, at this
meeting the business of the Association
was virtually organized.
The borrowing members under the
Gross" premium plan, who obtained
loans during the first years business
while we operated under this abomi
nable PLAN were granted a rebate
from their contracts of forty two and
one half cents per 800, per month or
premium account and were permitted
to renew their mortgages under the
met" or monthly premium plan. The
bylaws were neutrality-suspicious. Dor
rowing members to pay off one or more
pledged shares at any time by paying
: an amount sufficient to bring the value