Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-01-05
Regarding these figures MIR. Timber

Regarding these figures Mr.. Timber
| lake says:
This is a decrease of sic, 754.3S in
| total assets, as against a gain of
$3202.45. last year. The accumulated
capital, and during the same time
| 1915 in the number of shares outstand
| ing. This decrease in the amount of
| capital, and during the same time
| an increase in the number of shares,
| is principally due to the fact that the
older shares have matured or been re-
tired and new shares issued with small
| accumulationS necessarily standing to
| their credit.
There has been a small decrease in
| the number and amount of loans and
| in the number of borrowers. While
| there has been a slight reduction in
| the average rate of interest charged
| upon loans, it is still more than that
| for which money can be obtained else
| where. The result is that many as
, sociations are still unable to obtain the
| necessary amount of new loans to en-
| ploy their accumulated capital and are
| obliged to enforce the retirement of
| share to dispose of their surplus funds.
| The average rate of dividends paid,
which represents the income to non
| borrowing members, has been 5.S3,
| while the average rate paid to deposit
ors in savings banks has been 1885, and
upon investment deposits in trust COM
panies. 3.97. 1t is still urged that these
associations might largely increase
| their business. thus becoming greater
| benefit to the public and at the same
| hnt or yipor 10 f1o Of not,
| they were designed to accommodate,
| if they would still further reduce the
rates of interest charged to borrowers.
Non borrowing members ought to be
satisfied with lower rates of dividends
| than they now receive, as they are
much in excess of what they would OBJ
| tain elsewhere. Borrowing members in
| these associations can afford to pay a
| higher rate for their loans than is usu-
| ally charged elsewhere. The easy terms
| of payment and other advantages
given them, together with the fact that
| they participate, to some extent, in
| whatever profits are distributed, is
some compensation to borrowers for
| the higher rate of interests paid by
| them. One-half of l per cent. more
| than ordinary rates, premium included,
! would not be an unreasonable charge
on loans obtained from these associa-
tions. while or per cent. seems al
| together too much. The number OF
people who have subscribed to the
| stock of certain home purchasing as
| sociations, recently attempting to
| transact business in this State, shows
conclusively that there are those in
every community who are anxious to
| patronize institutions that promise to
do what the loan and building associa-
| ticnS should do for their members. The
| essential principle upon which these
| associations were founded was that of
| assisting those of small means to ac-
| quire and own their homes, and upon
such easy terms that they would be
| tempted to avail themselves of the OPP
portunities. 1t is confidently asserted
| that. if these associations will general
ly follow this policy, they will increase
rapidly in their membership and the
amount of their accumulations, as they
have done in other states. This should
be the general policy of all. If few
| associations should materially reduce
their rates to borrowers, the good re-
suits obtained would not be so appar-
ent as if all should do So for the gem
eral results obtained in this class of
institutions, and not that of the indi-
vidual associations, is what controls
public sentiment and increases their
patronage.
1.-The present average rate of premiums
charged is eght-tenths of one per cent. |
per annum. Twelve associations have en-
tirely done away with premium charges
and base their loans upon a definite |
contract. for an annual rate of interest, |
the same as do other institutions loan
ing money
The guaranty fund shows an increase
of but S4,476.44 during the year, while the |
gain for 1901 was STEELE. In 1897 the
statute requiring these associations to ac
cumulate such a fund was amended. III
creasing the amount which they are re- |
quired to set aside from their annLai
earnings for that purpose. Since that |
time there has been n most satisfactory |
increase in the amount of this account
from year to year. At the time the law
was amended it amounted approximately |
to one per cent, while now it has in
creased to over two and one-half per |
cent. of the accumulated capital
THE total amount of profits distributed
to shareholders during the year has been
s145. 03S93 being reduction Of approx
mately one-third of one per cent. in the