, 1904-06-28
TUESDAY, JUNE 20, 1904.
LOCAL BUILDING ASSOCIATIONS.

The people Of Wyoming are taking a
deeper interest with each succeeding
year in the operations of local building
and loan associations. 1t is only nee
essary to have the operations Of these
institutions thoroughly understood to
have them appreciated by the provi-
lent and thrifty. Other towns than
Laramie have reaped the benefits of
their operation.
Recently one of the prominent mem
beers Of the local association in the city
Of Cheyenne remarked that he believed
the local association there had done
more for the interests of the city than
my other n thing, and it was his
purpose to take some stock in the new
series about to be organized. The Chey-
enne association has been publishing
a quarterly paper. beautiful in its typo
graphical makeup, we'll edited and ex-
tremely interesting. Mr.. D.. A. Jones.
formerly of Laramie, is the editor, and
he has contributions from some Of the
best writer's on this subject in the
splendid article in one number and the
current issue contains an illustration
Of the workings OF local associations
from the pen Of Master Mechanic VIM.
INLAND. While railroaders are not gen
orally presumed to be well up in liter
ary matters, the gentlemen named
have handled the subject in hand in a
Wasterly manner. A few excerpts from
Mr.. Niland's article will be Of interest
to the people of Laramie, who have an
abiding faith in local building associa-
tons:
Misunderstanding al to the meth
DDS adopted in getting a loan often
keep prospective borrowers back, ow
ing purely to the fact In most In
stances that the matter has not been
properly explained. Wrong ideas pre-
vail in some cases as to h premium
paid, the premiums being COMPOUNDED
with the interest rate, SO tnat people
who read that some stockholder had to
pay 20 per cent. or over for money are
led to the impression that such stock
holder Is heavily taxed for the money
borrowed. when this is really not the
case at all, as a little investigation
would have shown. Suppose a Dor
rover in the series just starting would
pay 20 per cent. premium on a loan
and would take ten shares. The loan
would stand as follows:
Ten shares representing. $3.50 81, 0OO.O 90
Less 90 per cent premium. 10000
He would receive. .........$1,54O.O
After receiving above loan and
erecting a house costing that much,
the payments would De $4,000 per
month. Assuming that the association
would run ia months (Which the ex-
p~erience of other associations organ
lied on same plan as ours has demon
strated to be about the outside limit,
the total payments would nave stood
as follows:
36V pCT -
months $z,zeV.Vo
Amount borrowed ........ $4,000
Interest paid.........-....$ $4,000
These figures show the borrower to
have had the . Of 81, $4,000 for nine
and one-half years for $4,000. or less
than & per cent. per annum. notwith-
standing the fact that he paid q pre-
MUM Of ~ per osnt for the loan. on
course the monsv he paid back each
month should - counted - worth
some interest. bukthen did he mot have
his rsptY tbs surely would pay for
The us6of his naney. Besides. he hnds
q tAs "a u tAosIime nemsd that he
= stAs osasr q ~ own hone and tia9
snsh hone was really acquired With