The Portland daily press., 1895-09-23
MR.. WRITTEN CANNOT DENY


that it costs only two and four-tenths per
cent per annum for every share carried to
maturity in ten years, or two and one
half per cent if it natures in eight years.
Now as stated by Mr. Written, the
Association charges Sc per share the first
carrying on the business. AS the average
age of the stock is only IA months, the
expenses, which are three times as large
the first year as in the succeeding years,
could not be expected to be made up by
this time. so that, from the statement
books for s1.55 paid in, misleading
made by Mr.. Written. With the STOCK
now in force six years of age, FOR IN
stance the case is far different, fol only
| SIG out of S72 paid in as dues has gone
to expense and the profits have not only
made this up but have added dividend
to the extent of $2S per share, making the
book value of each share of this age
500. Is after charging off all losses. m
Guiding those recommended by the JolnG
Commi ssionerS, as shown by the ac5ual
maturity tables published by the Asso
citation In his report Mr.. Written fails
to explain the double mortgage system,
which enables the Association to borrow
large sums of money at aslower rate per
cent than it receives on its loans and SO,
while
INCREASING ITS LOANING
capacity, make much larger profits on
the dues capital of its shareholders. 10
this system is due the interest earnings
which offset the expenses and make the
shares progress rapidly to maturity in
the later years of the stock when the
working capital per share is large.
The statement is made that the Asso-
citation has received from Maine members
1886, O46 60 and the public are led to be-
lieve that the Association has taken this
money out of the State; whereas, as a
matter of fact, the Associations books
show 1902 900 loaned to Maine members,
(not including SIS, 600 of loans paid OFF,
$67, 600 deposited with the State Treasurer
| or a total of about 1870, 000-which
vested in. Maine $3.50, 900 of the original
1886, 600 received, without taking into
consideration the fact that out OF the
1886. 900 received the Association has re-
turned to withdrawing members in that
State many thousand dollars and without
taking into account the cost OF conduct
ing the business there. Therefore, as a
matter Of fact, the Association has
loaned, paid back, and invested IN the
State of Maine more money than Its
shareholders there have contributed.
THE PRACTICAL CONCLUSIONS
to be drawn from the foregoing reply to
Mr.. Whitten's report are:
That the Association is solvent.
That it can carry out its contracts.
That it can mature it's shares in the
time estimated.
| That it's expenses do not average more
tn IN two and four tenths per cent per
annum on shares carried to maturity.
| That it has invested more money in the
State of Maine than it has taken out.
That the 500, 900 Guaranty Fund does
guarantee liabilities and expenses, and
| That / did not borrow money at = per
cent to loan at per cent, but
| That borrowed money at per cent SO
that / might purchase 100000 of stock
which the members would have the use
| of for one year and a half for nothing.
| That Mr. Written must have been care
| less or prejudiced or he would not have
made the statements he has.
That according to his own showing and
| the laws of his own state, the Association
| could not have a deficit.
Tbat he has misled the Governor and
Council, the newspapers and perhaps the
general public, by the manner IN which
his report is made. and
That his re port, which was intended to
iniure the business of the Association in
Maine, while lit cannot affect the real
condition of the Association, is calculated
to alarm the Maine shareholders to such
an extent that some of them may
sacrifice their holdings and thus sustain
loss.
Ali the statements made in this article
are facts, and I trust that the Commits
sioners from five States, who are to meet
knext week, will for the benefit of the
public and the Governor and Council,
state who is telling the truth.
Trusting that you will give this article
as prominent a place in your columns as
YOU gave to the report of Mr. Written,
and thanking you for the publication of
| my telegram, beg to remain,
Yours respectfully,
G. PERCIVAL STEWART,
President.