Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-12-31
A Reserve That Is, a
Reserve.
FINANCIAL ARTICLE NO. %.
RESERVE FUND.

serve Fund that you probably by now
have an idea of It, or wondering why
We have not given more extended
explanation. In either case this ar
ticle will answer.
The Reserve Fund of the Phoenix
Savings, Building and Loan Associa.
tion is cash capital paid in by the
managers, directors and large fnan-
ciers of Pacific Coast. II Is placed
upon first mortgage under the Califor-
mia law, the same as your money. II
is subject to the State authorities in
case OF loss. etc. These mortgages.
for additional safety, are placed with
the Mercantile Trust Company. the
strongest trust company on the Coast.
They hold them for the benefit of all,
also to comply with the charter and
bylaws of this Company. and the
| laws of the State of California. II is
not Reserve Fund made from the 9th.
er stockholders. It is paid in in cash
| by the directors and others interested; ;
Il cannot be withdrawn until all con.
tracts are competed and have been
paid to the other stockholders Of this
Company. To snow you the strength
of this Reserve Fund we will first
show you the security upon which our
money is loaned for stock and bond.
holders. We are compelled to loan as
stated above. Loans must be repaid
monthly part principal and interest.
Example. for every thousand dollars
loaned there must be two thousand
dollars security. At the end of four
years, If a man had an eight-year loan
and had paid installments for an s.
year loan, 1t would be practically half
paid off. The security Is two thou
sand dollars; the amount owed the
Company would be $500. The amount
OF Reserve Fund and its profits, sup
pose we say. would be 35 per cent. We
would have original security on loan
two thousand dollars, 35 per cent ad'
ditional cash security Of Reserve Fund
(which is ready to pay out at any time
for any shrlnkage this security might
have), $3.50; total security, s2S50.00
At the end of four years, due on
mortgage, $500, property security, 81,
coo; Reserve Fund security additional
$3.50: end Of years total security, 81,
$3.50. Amount owed. $500. There
would have to he an $3.50 shrinkage
before a loss could be sustained
The above example is approx
imtae, but gives an idea of rela
nF tn nthnr GtnRlg
holders securities. II shows you the
absolute safety of the system. The
example is not as strong and does no
show as much security as the Phoeni'
actually has. The Reserve Fund Is in
creasing all the while because pro
portion of its profits are set aside al
additional Reserve. Do not thinl
that It is not making anything for III
principal is being loaned and interes
compounded the same as yours or yo'
are stockholder). This Reserve
Fund eliminates every possibility of
loss TO you. This Reserve Fund places
us in a position to get better business
at less cost, by inducing more conf
dence with our investing members
and consequently they never lose al
opportunity of throwing borrower o
an investor our way.
Our directors are satisfied that thi
system of loaning is safe, or the,
would not put up this Reserve Fund
or any part of II. to guarantee agains
loss. We annex complete list OF tn
Directors and Managers and Reserv
Fund Stockholders OF the Phoeni
Savings, Building and Loan Associa
tion.
, The following are the estimated OF
tions on the new Guaranteed Automa'
ic Annuity Bond. We will absolutel
e guarantee you a cash value on thl
bond from / to 20 years. Payment
made as follows are all that are nece'
b sary to produce estimated results l
table below In 10 years, $3.50 cas-
down, $4,000 per year, s4O.50 semi-ai
nually, or may be paid monthly:
y Cash at maturity, end of eight
years ................. .Sl,ooo'o
: Cash at maturity, end OF ten
years ...............''' l,oSo'i
: Cash settlement years after
o maturity .............. 1,964s
!. Cash settlement 10 years after
( maturity &. r. ............ 2,771.7
Q Annual Annuity for 5 years af-
: ter maturity =. ........... 3lZ.l
: Annual Annuity for 10 years
g after maturity :. .,..... lIl.s
y List of Directors, Managers and r.
serve Fund Stockholders Of the Pho
nix Savings. Building and Loan Assn
y A. A. Watkins, vice pres. w. w. Mo
! tague & Co. and president Board
" Trade, s. F.; Charles r. Bishop ua
: Of Honolulu), vice president Bank
a California, S. F., director Savings al
= Loan Society. s. f., and Calf. Tit
: Insurance and Trust Co., s. F.
y Prentiss Smith. late asst. cashier Bar
" uf California, s. f., dir. the Nation
" Bank of ID. o. Mills, Sacramento; ov
c. Boardman, gen. agt. AETNA lns. G
s. f., director San Francisco Sav!E
= Union; Charles E. Ladd, OF Lacd
Tilton, bankers. Portland, Ore; Cav
McNahh attornay nj law. Claren