New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-03-11
THE BUILDING AND LOAN,
"a Reorganization Effected UDon New
and More Acceptable Basis.

"a Reorganization Effected UDon New
and More Acceptable Basis.
The Motto WILDE American Homes the
Safeguard Of American Liberties.
A meeting Of the stock kholders Of the.
New Ulm Building and Loan Associa-
tion was held Thursday evening at Tur-
ner Hall. The meeting was a special
one and was called for the purpose Of
discussing a change in the organization
an 1 its system of working. The reason
for this is the fact that under the plan
heretofore in vogue the time allowed for
the payment of loans is shorter than the
directors deemed advisable. The bor-
rowers want moro time and smaller pay
ments. Another reason is that many
loans have been repaid, owing to the in
ducements offered by capitalists in Of.
fering long loans at allow rate of inter-
est. The complexity of the Building and
Loan plan made it hard for the borrow
er to see that he was getting his money
on easy terms, and therefore lie readily
avalled himself of an oppprtunitysto Sc
cure a good sized loan at say eight per
cent from an individual lender.
The new plan lessons this difficulty
While it does not provide for as large a
late of interest for stockholders, it looks
to it that the investor who does not in
tend to do any building docs not get the
hons share of the profits. It will be
strictly Building and Loan Society and
its motto will be based upon the princi-
pie that American homes are the safe
guard of American liberties.
Inasmuch as the plan has many feat
ures that could not be embodied in the
old system without great n:onvenience
it was decided by the directors to organ.
ize on an entirely new basis-one that
would work for the benefit of the town
and at the same time for the perpetuity
of the institution itself.
Shares in the new plan will be worth
$100. Every shareholder will be com
PEELED to pay 25 cents week for each
share, free or pledged. Payments
are to be made every Saturday, but no
fines will be collected for irregularity of
payment,except in the case ofborrowers.
Payments may be maze in advance to
the extent of any amount and such pay
m9nts will only result to the advantage
of the invester. There will be no stock
series, each member starting a series
when he chooses to do o,and consequent
ly no payment for several months pre-
vious to the date of application for
stock. ,
A free share will be worth $10O in six
years and one month, providing the pay
mcnts are made weekly and regularly.
Paid-up stock will be issued for $10O or
more and such stock will participate in
the dividends every half year according
to the bylaws. -. .. E..
The borrower pays 25 cents week on
his shares and interest is charged accord
ing to agreement at Is, 16, or II cents
| IL 7,&ko l.
would becqual to S.32 per cent per an
nun. =
The following is statement of the
workings of a loan Of 81 900, with inter-
est at 16 cents per week on each 500
and dividends at per cent per annum,
credited and compounded emi-annually
The required weekly payment being
25 cents on each $1OO would make the
total payment $3.50 per week o.. each
$4,000
Total payments $1,632. so
Total interest 1,044.SO
Total dividends 412.3O
Total cost of loan 632.5O
Average net cost of loan 5O.56
According to this the average rate Of
interest would be. 5 per cent.
| Borrowers can pay any amount at any
time ander the new plan and these pay
ments will participate IN the dividends Of
the folio wing half year. A fine Of % cents
for each share will be charged in case
lof irregular payments on the part Of bor-
rowers.
lis IS the general working Of the plan
and from present indications it is going
to work to the greatest satisfaction.
Nearly all OF the stockholders of the
old association have signified theirlnten-
tion to enter the new organization and
comply with It's regulations.
The management will be practically the