Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1904-07-08
COMMITTEE REPORTS
July s. 1904.

July 8, 1914.
Mr.. E. OBERBECK, President,
Grand Rapids Advancement Associa-
ton.
Your committee on Home Building
beg to submit the following report:
After much inquiry about the diff
ferent Building Associations in this
and other states we believe that the
correct plan is that Of a Mutual Build
ing & Loan Association for the
encouragement of building homes in
Grand Rapids and that the time is
right for the promotion of such an
association. The chairman of your
committee visited Racine where is
located the Racine Building & Loan
ASSOCIATION, one Of the best in ex-
istence. 1t has been matter of
personal pride Of every thinking
business man in Racine to assist this
association in every way possible.
Theirs is on the mutual plan and in
substance is as follows: They organize
company with 100000 capital
and the subscribers are limited to a
subscription of so shares of 500 each
so that no loan can be obtained in an
amount to exceed $4,000. Loans are
made to Is per cent. Of the value of
property to be given as security. A
premium is required as bid for each
loan and loans are made in succession
as applied for. Interest on loans
aside from dues is figured on basis OF
7per cent. and their loans mature in
nine years and half. BY this method
the borrower is participant in the
earnings and his monthly payments
together with the earning of the as
ISOLATION will mature his stock. John
Jones wishes to borrow $1,000, he pays
the premium for the loan and SUBJ
scribeS to ten shares of stock and
begins Immediately to pay his monthly
payments which according to the
table they use will cost him monthly
payment of 49, IS and all subscribers
are placed in series by themselves
consisting of three months each. The
subscribers are of two kinds investors
and borrowers and those who are
purely investors may be paid off should
a time come before the series has
matured that the association finds it
has money on hand and no call for
loans and the bylaws allows an in
tereSt earning on amount paid by the
subrcriber of I per cent. Should a
borrower wish to pay up his loans and
withdraw he is allowed but 6 per cent.
on all money paid in. AS matter Of
fact all subscribers whether real Dor
rowers or not become investors as the
money paid in earns and shares in all
the earnings of the association DIVIDED
among the shares of that series. The
Racine association statement for
January l, last shows gradual re-
duction in the amount paid in and the
increase of earnings as well as de-
crease of time when stock natures.
The first series took ia months to
mature and amount paid per hundred
dollars Of stock was $57 and earning
per hundred dollars was S43 this was
stock dated May 1891, series number
IA dated August, 1894 which was the
last to be matured only required liz
monthly payments of a total amount
of $50 per hundred dollars of stock and
an earning or rather profit sharing of
$44. The Building & Loan associations
in this state one is under the super
vision Of the Bank Examining De-
partment Of the state requires two
reports each year OF the standing Of
the association. The only officer
receiving0any pay whatever is the
secretary and that is fixed with some
reference to the amount Of business
transacted being light on the start
and increased as it is found the work
requires more attention. Racine
business men say that nothing helps
to Guild up town as much as this
kind of an association Men own
homes who would probably never
have home but better than that
they build much better homes when
paying for it in this way than where
they have but two or three hundred
dollars to start in with to build in the
ordinary way. So that the general
character of the town is greatly i'm
proved. Your committee stand ready
to assist and organize such an ascot
alton il it receives sufficient en-
couragement.
Respectfully submitted,
T. A. TAYLOR