The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1903-01-07
ATTACK LOAN Associations.
LyT-EE t-IcsyES DEcLA7Es
T-ES vpRAcTlcEsLE
ss1ss rs A--zsl rep.--t-otd Lire
5uuoi-s s-1 Lss- cs-ss-rs A-e
SAL . 5s II Gess Ff-s-eisi
cs-1 tts----c-s q g D--e

1sEe-s11 CITY. No lE-- s-Tne an
anal rerc-r G. Luther HicE-a1- -
p=-Tlacr of buuttnE zzt lozu assoc
afiCls kEs tust ro-e from the p1h-ic
printer d gives statistics sho~tnE
-ke f1Eucial cc-tittc- % these Esso
cations - ysars frcu 1856 20 AID
Including fhe year tgst closed. Ehlca
show then to be in Eoed cc-5itto--
Nr HickEa1 Goes uos llke tire Co
c1e-ative associat5o-s. however. ar6
e1.-suinE t1ez De- las this 20 say:
Ttsse companies are orEsnlres
- ha-t car-taL and thelr promoters
stake uo-hi-E upo- The success OF non
s-r-ess ~ the tusi-ass. their pay-
usnts are erte15e-5 over = IonE period
II tiue. szi eVery month each men
bsr uust rsy on his contract for tax
ing care % his snail investment
tiE1 assessment for eEpenses. cut Of
Eh.ch the organizers Of the scheme
expect 70 reap much profit
The only hope Of benefit he'd oui
70 the member is that he nay some
times Be able 10 borrow the face value
q his contract and repay the loan By
a small monthly payment. without 81
terest He must keep up his payments
Indefinitely and not time is hxed a.
which he can demand the privilege Of
such loan; the early maturity o. his
contract depends upon the number Of
members who are Induced 70 20 into
tht concern after him. and Who keep
up their payments.
The increase of membership re-
quired 10 mature such contracts with.
In a reasonable time IS such a. 70 ren-
der the entire scheme impracticsble.
The only way 10 figure up on tsa au.
thority Of such a contract is 70 divide
into the par value of the contract the
monthly payments 10 be made to the
loan fund BY such contract before a
loan is made upon II. This viii give
the levsl al which all members can Sc
cure their loan II does not matter to
the last man at what rate the holder
q mature or borrowed contract NAV
repay his loan. for the larger his
monthly payments the sooner he ceas-
Is to pay.
III the company has . payment Of a
dollar month 10 the loan fund on
each 1900 contract. no one paying
more than that amount 70 the loan
fund. there can be no question that
the level al which loans can be made
Is 1000 months. or eighty-three and
one-third years. The man who carries
his cOptract until it reaches this level
vii get his 1900 at a cost to him Of
5000. allowing interest on the money
he invests at the rate OF four per cent
per annum.
He enters into a copartnership and
renders himself liable for mistakes
and errors Of Judgment and guaran-
tees the responsibility Of a manAes
ment In which he can have no part
and as TO whose solvency he knows
nothing II has been demonstrated
times without number thai losses oc.
cur in the most conservatiyely manag.
ed loan companies. How. then, can a
concern that buys property upon an in
stallment basis, which certainly can
not be done 50 eheaply as II bought
for cash. and leans the full amount
paid for the property. taking in return
monthly payment in most cases low.
er than the rent. expect to escape
ruinOus losses?
1T has never been done. and the
possibility Of it's being done is no,
offered by these companies as nov
constituted"