The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1897-12-08
BUILDING AND LOAN Asso.
CITATIONS.
The New Six Per Cent. Plan Crit
icised.

Nr. Editor noticed 90 advertisement
in your paper by Dr.. Auld, asking for sub
scriptions to new Building aud Loan Asso-
citation to be organized, and | have seen the
| ssProspeetus'' issued by him. We have no
better ipstitutions from financial standpoint
| than properly planned building and loan,
and We need new one in Sumter to begin
iust.p as 's.be Peoples" is about wound
up. do not think Dr.. Auld's plan is e1-
actly what We want, and would respectful
" suggest to him and to the people some al
terations in the plan
The Peoples now closing iss affairs called
itself per cent. B. i l., but this Was osly
in name. 1t did not 20 operate. 1t operated
upon much higher rate OF interest, which
was due to the premium. You borrowed
$500 per share. only in name, and gave your
bond aud mortgage for that amount, but you
only received at most (when there was no
competition in bidding) $3.50 per share. So
it Was uot per cent. B l. L. Neither is
Dr.. Auld's prospectus 6 per cent. for toe
same reason, namely the premium to be
charged.
Both s.The Sumter and ssThe Peoples"
have had their law suits arising out of COM
plants of usurous interest charged II is
only surprising that there we're not more. II
speaks we'll for the memoe of both that there
were not more law suits. There is no doubt
that the courts of our State have uoivereally.
held that 90 matter what you write in the
bond and mortgage, ii the borrower pays
greater rate of interest on the actual amount
received than is allowed by law, 90 interest
can be collected, and double the usur;ous in
terest must be paid back as penalty. This
is the law, aud Why not organize on plan
where nc usurioue interest can be charged,
GO matter how great the demand of the IN.
fortunate applicant who needs money. Or.
Auld's plao is as follows The association
is 10 be composed Of |, 900 or more shares.
Stockholders are TO pay 81 per month on
each share, before borrowing.
A loan of 500 will be made on each share
aud Interest on same will be charged at rate
of six per cent. per annup, being Sc on e,ch
ehare per year or so ce.ts per month. This
will make the monthly payments on each
sbare after borrowing Sl.s0. Toe money
will be sold 10 the highest bidder. The sale
70 the abighest bidder" is what spoils the
6 per cenr Bot the borrower must pay 6 per
cent. on 500 no matter what be gets Does
any body believe that in fbe face of competi-
readily at eight per cent that stockholders
will be allowed to get the foli cum of 500
per share? The borrower will get from $50
to S75 and pay 6 per on 500 Was there
ever a time in this city where individuals
cent from individnals, banks or even q So
called per cent B Il L.
One other feature is, think, Objectionable.
n. .t,a< he os,
shall run until each share shall be worth tie
SUN Of SlGO This ia like the old plans of
THE Sumter and "The Peoples which
$500 per share They loaned $500 per shareA
(so-cal;ed), instead Of Slco. es proposed ey
Dr. Aud. But did they ever reach such
valuation No; for the reason that one OF
The premium borrowers kicked out o
had to be held. Hot debates ensured
40 equitable basis long before $500 valuation
was ever reached We do not want this
again, aod yet with DR.. Aud plan it is sure
to follow.
Those who borrowed at q very high rate Of
ipremnm are s,ill out in the cold. SIX per
| cect? No never! Reach va;uation OF ST.
per share? {? never Plemiun borrowers would
kick out or 90 into court under pleas OF
usnry. / like to call a epsdea spade Still
another ohjectional feature. Once your peck
is in the balter il is hardly possible to get it
out, except by containing to the end or the
equitable Wind up. Sometimes borrower
| would like to pay up his mortgage 81 once,
or cell his property when the purchaser would
perhaps object to being fastened in B + LIS.
| uncertain duration. Nor would he known
| bow to 6x the price of his property. They
say you Gao get ont by substituting q borrow,
paying difference in preminm &c. But it is not
| easily done.
Here is plan it seems to me which is not
only just and fair TO ali but which is so sim-
pie that "ansone" may understand, and the
! interest ia fixed and certain. The value OF q
share to 500. Losos to be made Of 500,
| not less. no premium, 81 per share per month
| to be paid in on stock, 10 run until the
association shall reach valuation by the accu-
mutation Of stock ADD interest of 500, charge
| the borrower 8 pc. cent on the 500 from
the tine be borrows il and thereafter bic due.
| will be Si.663 per month, including stock and
interest. Permit farmers or others who may
desire 10 do 70 TO pay in advance, allowing
proper discount.
There can be no usurY Eere, no cloud TO
annoy stockholders IN efforts to make equi,-
able adjustment. Let the borrower out at
| anytime be may see proper to pay back his
Sl00 and then mark his mortgage paid and
restore to him his stock fully alive. The
borro.er bsre has had the use of the Sl00,
he has paid the lawful rate Of interest on it,
which is all the law requires
But it is asked how will you serve applica-
tions. We answer according Mlller's rule,
First come FIRST served. if application ie not
turned down for, lack of sufficient security.
You cannot please every body even with
the miller's rule. When boy waiting
the mill. used to try toNsmuse myself going
6shinr, bathing, &C., while waiting to be serv-
| ed and sometimes had tedions long wait, but
have never doubted to this day, but that it
was fair and jest rule
Now this would be an eight per cent. B. b
L. and mean what it says:
Let me suggest therefore, that Dr. Aud
| make the change suggested or call q meeting
of subscribers and citizens together to con-
s'der plane for organizing new association.
The above plan which have proposed has