The Greeley tribune., 1905-08-10

Denver, $500: to Fl. L. Medearis,
Greeley, 200: unascertained, S2,-
200. Mr.. Medearis has been men,
Der since last June, and got his loan
few days ago. In this connet tlon
the seeker after knowledge is In
clined to wonder what became of ali
the contract holders who took con-
tracts from November /, 1902, to
June, 1908. Four loans have evil
IDENTIFY been made to members who
took contracts before Mr.. Medearis.
Have the rest all got discouraged
and dropped out, losing what they
put In, or was Mr.. Medearis' loan
made ahead of its turn to serve as
bait for more Greeley business?
Now TO, the sake of argument we are
going to assume that the United
States Home company is all right,
and that its officers are going to do
square business. Let us see how
the proposition works out: First
you put up ten dollars application
fee for every 81, 900 you want. This
goes to the company for salaries and
expense, and is lost, whether you
ever get a loan or not. Then you
pay $3.50, $3.50, 50. so $3.50, $3.50 or
slO.5O per month as you may choose
until you get your loan. The half
dollars in every case go to the ex-
pense and reserve funds, (40 cents to
expense, 10 cents to reserve) and the
dollars to the home fund. You are
also credited with per cent on the
amount paid into the home fund.
When $1,000 accumulates In the
home fund it is loaned to the men,
ber who has paid In the most money
and for the longest time, and the
borrower, regardless of class, pays
back his loan at the rate of $3.50 a
month. When the money he has
paid into the home fund, with the
six per cent interest on same up to
the time loan was made, amount to
81. 100 the loan is cancelled. Now
what is the real' chance for the in
tending borrower to get loan in
the time promised. viz, about nine
months If he pays $lO.5O per month?
Suppose there are now 200 members,
paying on an average of $3.50 a
month each, giving an income In the
home fund of $1,000 per month.
If each gets his loan In turn, 1t will
be 200 months, or over sixteen years
before the last of the 200 members
gets loan. This time, of course,
will be cut shorter in proportion to
the increase of the company's busi-
ness. but there is no chance In the
world of loan being granted to a
man who takes his contract now, In
side of two years, If the company
has so many as 200 members, and II
it hasn't that many after seventeen
months existence, 1T never Will
have. If you get tired of paying in
and want to get out any time before
two years. you lose all you have paid
in. If you stay two years and the
company is alive and solvent and
everything square, you are promised
the return of all you have paid into
the home fund 1.-THE HOME fund,
mind you) with six per cent interest.
Let's see where that puts the man
who wants to draw out. Remember
that in each class fifty cents OF each
payment goes into the expense and
reserve funds, and is never drawn
out.
SI.So Class-Cost.
"a payments Of 81. so. O........... $500
($12 goes to expense and .,
Can withdraw after years:
1924 paid into home fund. 24.o
| Interest on $24 at per cent. l.4a-2o.ai
! Ioss 70 mamber $50 sc
$2.So class-Cost
"a payments OF s.. so. .....;.... 6O.OO
($l2 goes to expense and .-o ,c
Can withdraw after . years:
$4s paid into home fund. 80. 1899 -o oe
Interest on $4S at q per cent. 2sS-ooee
Loss to member .$1e.1e
50 so cIass-cost
81 payments Of IS. $50. ....:... s4.OO
($i2 goes to expense and .o, M
reserye) T'4'oo
$72 paid into home fund.-: 700 -,
| Interest on *72 at per cent. l.32-'o."-
| SS