, 1899-01-26

Authorized capital. 81 900 DOC. 90
Total outstanding loans. . .s219. SOC. 90
| Shares in force in the different series
No. l, issued Jan. 25, 1892. 1882
No. 2, issued Jan. 25. 1897. $50
No. 8, issued Jan. 25. 1898, ABS
Total shares in force 2267
Matured value each share stock
($2OO, less Is Der cen .D.s $40 90
Monthly payment on each share
of stock. 81 90
Minimum premiums on loans. Ii per cent
Average premiumdur '9S. 16 per cent
Rate of interest per annum on
loans...... . ..........,6 per cent
Probable number of months that
each series will run
The association will redeem stock at
any time after three years from date OF
issue. The state law will not permit
us to redeem any sooner. Loans made
TO members of the association only.
WHEN WILL STOCK MATURE?
Perhaps there is no question in con-
nection with the association of greater
holders than this, especially is this true
of a stakeholder who has obtained a
loan. I regret. however. to saw that
there are so man contingencies to be
taken into consideration, that it is i'm
possible to tell within a month or two
Just when a series will mature. If YOU
can tell me what our average premiums
will be during the next two or three
yeasr. and what our losses will be on
loans and on property now held and
hereafter to be acquired by our asso-
~ciation, the amount as we'll as the time
of withdrawals in the various series.
and Just what our expenses will be for
each year. then. and only then will it
be possible to compute the exact time
when a series will mature. I can say
this, however. that if we don't meet
with any further losses, and il the pre-
miums average the same in the future
that they have in the past, and all 9TH
err conditions are the same-in other
words, il our net earnings are the same
in the future that they have been in
the past-the different series of stock
will mature in a little over 112 months
from the respective times the same
were issued. A very simple way to
prove this statement is to make a cal
cuIation on that basis. For example.
IL the stock natures in 112 months.
then 81 per month for 112 months, or
$112 has been paid on each share of
stock. The amount received at maturi-
ty is 5000, less Is per cent (the mini
mum premium, or $17O. Deducting
from this amount the $112 paid, we have
1858. or the net earnings on an invest
ment of $112 for Sc months, which is
the average time that the money has
been invested. This is equivalent to
interest at the rate of II per cent per
annum. or about what our money has
been earning in the different series
Calculating the same way we find that
Ill months is too short a time and 113
months is too long. and so we conclude
that 112 months is about light. In case
we should have a large number of with
dravals in series No l during the conn
ing year, the chances are that the series
will mature in III months or even less,
but this is all guess work, as the losses
NAV more than offset the gains in this
way.
MISCELLANEOUS REMARKS.
The secretary discussed the Question
of delinuuencies at some length. and
then referred to the adoption of new
bylaws by the trustees of the associa-
ton last March. printed comics of which
were distributed among the members
~nresena The new by-Iaws It was sue-
pested. would be found a great i'm
movement over the old as thew COM
bined the wisdom and practical expert
ence of every member of the board to-
gether with the knowledge of three at
torneys who have had many years of
practical experience with building asso-
Citations.
Attention was called to the fact that
but two pieces of property had been left