Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-12-19
The REPORT OF A
COMMISSIONER. &
SAFETY.
SAFETY.
FINANCIAL ARTICLE NO. 10.

I
report of 1895 that there we're approx.
imately 5000 Building and Loan Asso.
Citations doing active business and 9S
per cent of them, all through the years
OF depression since 1893, paid an aver.
age from 10 to IA per cent dividends.
There is one other Association In
Hawaii Territory. It is IL years old,
which has averaged 10 per cent for its
stockholders and has never gone out
side for business. We all know Homo
lulu and the Hawaiian Territory have
been dull for past few years. We
could name hundreds of instances and
institutions, but we have shown that
the Building and Loan Associations
are good and safe.
The writer was employed by Ger.
tain Building and Loan Association
through the depression Of 1884, and
that Association paid out about one
half of it's money tassets) to with.
drawing stockholders in few months,
yet II made 22 per cent dividends that
year. This run extended for four
months. Don't you think II was a run
that the average financial institution
would feel? Continually paying out
money for four months! Another
point, this Association had Just sus-
tained a shrinkags of few thousand
dollars In its real estate account which
was not favorable, particularly at fnat
time. This Association is still operat-
ing and is one of the largest in the
United States.
We realize the statements made
above are strong. but we have absolute
proof upon our desk and II will be
shown at any time you feel inclined to
investigate. Now. why didn't this as.
sociation go to the wall. and how did
It make 22 per cent dividends? The
Association was only four years old
and consequently It was not of such
enormous size. The reasons that IL
did not break are these:
First-All certificates due for with
drawal had to be one year old.
Second-There was sufficient Of the
profits deducted from the man with.
drawing to pay his proportion of the
expense and leave something for the
profit fund.
Third - The steady repayment
monthly on loans, principal and inter.
est enabled II to pay these withdraw
ais, as II had cash coming in all the
time.
Fourth-Not all Of these contracts
were due and payable at any one time,
but at different times.
Doesn't this show you the strength
Of an institution that has a stated
sum OF interest and principal paid
each month from the money which |
has been loaned. Is Il not wise judg-
ment to reserve sufficient profit to pay
expenses and add to the profit OF peo-
pie who have confidence In the Com.
pany to stay through? Don't you
think that the man who stays to the /
end deserves more than the man who
ioes not complete his contract?
GUARANTEED ANNUITIEs.
Annuity after five years payments:
for each consecutive year
hereafter as follows: SS9.S4, s112.3O,
FlS5.SS. sI61.71, $19O.91, s2246O. An.
luity also for ten years IL desired. I
An advance payment of $3.50 accept
I'd in place of installments, or $50 per
year, or $500 per month, on the fol.
owing:
ESTIMATED OPTIONS.
Cash at maturity, end of eight
years ................. 81 ,000. 90
Cash at maturity, end of ten
years ...............C.. 1,SsS1O
Cash settlement five yea6 af.
ter maturity :. ........ 1,96496
Jash settlement ten years af-
Ter maturity :. . .......... 2,77l.79
ANNUAL annuity for five years
after maturity ....... 312.19
annual annuity for ten years
after maturity =. ......... 171.39
Guaranteed value at tenth year ac-
ording to number Of years paid as
Amt
'ayment Paid Amt
'topped. In. Reed.
lst year s 5000 s 10000 at 10th wear
3rd year $4,000 s $4,000 at 10th year
9Th year $4,000 s $4,000 at 10th year
7th year $4,000 s 745.OO at 10th year
9Th year $4,000 s 915.OO at 10th year
9th year $4,000 100000 at 10th year
uRTHER GUARANTEED VALUES.
ash settlement five years af-
ter maturity a oac onI
ash settlement ten years af.
ter maturity ............ 1,555.3O
Absolutely non-forfeitable, also au-
,matic after one year. Think of the
pportunity of earning not only the
rofits guaranteed. but also the sur.
lus profits wheD/ men (whose
ames are below are handling your
loney with their own, to make as
iuch for all concerned as possible.
Directors-A, A. Watkins vice pres
lent w. w, Montague & Co, and pres
lent Board OF Trade, S. F. Charles r.
ishop Clate OF Honolulu). vice.
resident Bank of California, s.
., director Savings and Loan
ociety, S, F., and Calf. Title Insur-
nee and Trust Co., S. f. S. Prentiss