The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-02-23
Az to Lonn Associations.

| To the Editor of The Post.
Houston, Texas February 30 lS39.-As
your article in this mornings paper un-
der the hend OF 1.-THE lnstallmcnt Plan, -
In which YOU state; The court Of civil
4 appeals :" bonded down an opinion
4 that may affcot hundreds OF build
| ing and loan contracts" etc, would seem
to place all building and loan companies
| under the same head with investment
companies and rs you have outlined the
| plan OF investment companies, Will you
! kindly allow me to state the plan of our
! local building and loan companies, which
/ Grc purely mutual, aud can net be at
/ fectod In any way by this decislon' IA
| a borrower through one association and
a stakeholder aud secretary OF another |
know whereof ! speak.
A share In q building and loan company
ia worth nj maturity 5000 TO accumulate
$500 by saving 81 n month which is the
amount paid by stockholders on each
share would tnkc 200 months by the or
binary old stocking plan, bat whore we
join together and throw In our 81 per
! months II Ia immediately loaned ut 10 per
cent and We reap the profits, Shares have
been mntured In this city by local Assoc
Citations IN lis months, and tho stock
holders, after paying In their SliS have
withdrawn their 5000.
In borrowing $2No on the supposition
80 In you pAy 10 per cent on the 5000 from
the time YOU borrow until tho stock ma
lures For tho sake OF easy iKNrlng VIC
VIII say that the stock natures In 100
months or ten years, then the following
tahlo shows the exact state OF the loan
TWO hundred collars borrowed $50 in
terest paid zach yclv, divided into twelve
equal nayments 5000 total interest, paid
in ten years: Sl20 total paid in ton years,
to mature one share OF stock 10 5000, $500
total principal and interest paid in, In
ton years: 5000 amount borrowed and
paid in cash TO borrower at start; Sl2e
paid in in ten years In excess OF amount
borrowed being interest. 81. being the
average amount OF interest for one year,
or per cent on ioan
In actual practice by iiouston's loan as
snciations, as stated above. II Is Less. As
the borrower han as rule, heen paying
ront, IL tho rent Ia deducted from tho
amount paid In the actual cost 10 borrower
OF his homo at the end OF ten years is
very small amount.
] wish it distinctly understood that tho
above ngures are for unr home associa-
ttons and not for National associations,
whose headquarters are out OF the state
and who work on different plan as II
rule.
My FIRST reason for asking you 10 publish
this Is because OF an uninlentional inius-
Tee done our home associations in your
article OF this morning, and. SECOND, be-
cause II viii help to show the home peo-
Pile the honofts 10 Ne dei lived fyvni home
associations doubt n there IL home
secretary who Is not called on daily 10 oy-
plain Just what this shows aud convinea
6ome one that while you pay 10 PER cent
every year FOR ten years on the total
amount borrowed. yet the dividends or
yearly earnings on the stock which goes
10 the credit Of the borrower ~ woll as
90 those who do not borrow reduced thp
amount to less than II would 30 " creuit
Of 10 per cent was given every year on
the amount OF principal paid IN or q re-
duction n,ado OF the princlpel yearly
Yours truly, A. A. Grant