The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-06-11
A GREAT BENEFIT.
Cooperative Banks
Doing a Lot of
Good.
THIS CITY HAS THREE OF THEM.
Uses of the System Little
Known by the Gen
eral Public.
THIS CITY HAS THREE OF THEM.

| one of the least understood by the
great majority for whom it Is especi
ally operated. The fact that there is a
system is generally known, but what
the uses and benefits of the system are
is known only in hazy way by the
general public.
The system had its beginning about
so years ago, but was not perfected or
generally used until comparatively re-
Gently. 1t is now we'll established in
all parts of the commonwealth and in
creasing its constituency and its num-
bers every year. The last report Of the
Board of Commissioners of Savings
Banks to the state senate and general
court, Oct. 81, 1898, showed that there
are 124 cooperative banks in the state,
three collateral loan companies and one
mortgage loan company. OF these three
banks and one of the loan companies
are located in Worcester.
The object of all the cooperative
banks is practically the same ard Is
for the accumulation of the savings OF
its members, and the lending of funds
so accumulated, as provided in chapter
III of the public statutes. The statutes
provide that the limit of capital shall
be one million dollars, divided into
shares of the ultimate value OF S2OV
each. The statutes also provide that no
person shall hold more than 20 shares
of the capital in any one such corpor-
alton, which is a preventive 10 ae-
curing a monopoly of stock ana thuS
defeat the purpose of organization
An idea of the extent to which busl-
ness of the cooperative banks of the
state has reached can be had from the
report of savings banks commissioners
for 1898. The sum of S. 1870, 425.9S was
paid into the 124 banks in monthly
dues; S1,414,9O7.4 Al was paid in in inter
est; $54, 103.o2 was paid for premiums
and $4s, 1913 was paid for fines. Dur
ing the year the banks returned 10
members $2,973 429.95 for dues on SHARES
withdrawn, $65, 627 for dues on shares
forfeited, 81 S13, 705 for dues on shares
retired, and $412, 3O7 for dues on shares
mstured-a total of IS, 265 06S95, which
represents sums which have been pald
into the banks by members in monthly
instruments of dues in actual cash.
In addition those members whose
shares matifed or were retired re-
ceived S187, Q3s.03 as profits pm. shaEseesss
matured, $48S ,08 as profits on shares
retired, and there had been credited 10
withdrawn or forfeited 1853 OO1.90 in
profits on shares withdrawn, and 49,
$50. SO in profits on shares forfeited-a
total of $1,13S, 02570, which represents
the earnings of the sum above men
toned as dues eliminated. During the
year there were 1890 shares issued
and 1859 eliminated for various
causes, making a net increase of $780,
shares for the year.
1. -. = h to l a
share in the record for the year are
the Worcester Cooperative Bank,
Home Cooperative Bank and Equity
Cooperative Bank. The first named is
the senior Of the three and was IN
corporated Oct 10, 1877. The Home
bank was incorporated June 10, 1889,
and the other Feb. 8, 1887. All OF the
banks are on sound financial footing
and their aims are best set forth in the
plan of operation printed IN the bylaws
1t reads as follows:
ANY person may purchase shares to
any amount not exceeding twenty 1--WE
shares in any one corporation. Inc
price per share is one dollar per month.
If five shares are taken the payment is
five dollars per month. The payments
are continued until the shares are each
worth two hundred dollars. They are
then called 'matured shares, or shares
that have reached their ultimate
value Each time a new series is is
sued, the accounts are balanced and the
profits divided and credited to the sew
eral shares These credits are the same
as payment upon the shares, and help
to mature them. AT maturity the snare
holder receives two hundred dollars IN
cash for each of the matured shares
held by him.
1T is plain that if no profits were add
ed it would require 16 % years C2OO
months) to pay up a share, but the
profits reduce the time so that the
average is about eleven years and four
months This makes the investment
very good one. When an investor be-
comes a borrower the investment at
once becomes a sinking fund to pay OIL
the loan.
ANY person may borrow two hun
bred dollars or such portion Thereon as
the bylaws permit, Upon each snare
taken by him, if he can furnish the Sc
curities prescribed by law. This is real
estate only, except that the value OF
shares at the date of the last dividend
may be borrowed by the owner If such
value is not less than the smallest loan
permitted by the bylaws.
THE process for borrowing Is as fol-
lows: At nine o'clock on the evening OF
the stated meeting the amount to loan
mences at the minimum rate of interest
and from this point goes on advancing
one-eighth of one per cent per annum
at each successive bid. When the high
est bid is reached the money IS
knocked off" the successful bidder
states the sum he wants and the bal
ance. if any, is put up again.
THE interest on the loan goes to the
general fund. and the borrower receives
his proportionate part of it and his div
idends constantly, and at the ma
turity of the shares very largely re
duces the amount of interest he pays
on the loan
The annual reports Of the banks
show the Worcester Cooperative bank
to have the largest membership, and TO
have the most business. At the time
Of the report it had 1916 members, hold
ing $751; shares. with 2160 pledged
shares. Its receipts amounted to S2lO.-
17l.21, and its disbursements reached
S2S3. 1926, reducing the cash on hand
from s42. 94S.6l to s19.122.57.
The Home Cooperative bank en-
braces 1917 members, holding ZOO shares
and 1898 pledged shares. Its receipts
reached 5000, 200l9, and disbursements
we're Sl72.94T.75. increasing the cash on
hand from s12. 755.7S to S40.00s,22.
THE Equity bank, the Junior in the
1ocsI field. has IA members, holding
Sos shares and 1907 pledged shares. Its
business last year was $500 622.12 in re-
ceints and S203, 274-20 in disbursements.
The increase in disbursements reduced
tbe cash on hand from Ss5O6.l1 TO
| S6S54.09. -....... 20
Gee in Walker building, and 7. ]. Hast
ings serves. as secretary and treasurer
- aaob although the other executive