Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1907-11-08
BRATTLEBORO LOCAL NEWS
INVESTMENT PHI ASE
Important Feature Of Building
and Loan Association
How the Institution Has Worked in Bur
linaton-Helps to Make Business for the
Savings Banks.

Hneton-Helps to Make Business for the
Savings Banks.
The project of forming a building and
loan association in Brattleboro which met
with such a favorable reception when
presented to a mass meeting of citizens
last week. has been furthered by the
new Industrial committee of the board of
trade this week by the collection of de-
tailed information concerning the me-
thods and results in the banks of
similar nature in this state and in Mas
saChusetts The data collected regarding
the loan associations in Burlington and
Essex Junction are particularly encour-
aging as their conditions are more paral-
lei to the conditions in Brattleboro than
those which have been organized in large
Massachusetts, cities The Burlington in
stitution makes a very enthusiastic re-
port of its work and gives good ground
for the belief that a similar institution
would have a like success here.
The conditions In the Burlington build
ing and loan association bring into prom
inence a side of the question which was
not fully treated in the lecture by Mr..
EIdredge last week, that is, the invest
ment phase The usefulness of this form
of an institution in enabling workingmen
to build and own their own homes was
amply demonstrated but the standpoint
of the investor was not fully stated.
Obviously there must be large portion
of the shareholders who take shares for
investment and not for the purpose OF
securing loans, else there would not be
enough money available to meet the de-
sired loans. The Burlington insttu-
ton has been able to pay six per cent
interest on shares since its organiza-
ton in 1895. The rate of interest to
borrowers is about 6is per cent. there
and the shares of the first series, started
in 1895, were matured in IL years and
eight months. This is decidedly better
than the average in Massachusetts where
the shares are matured in about ID years
The Burlington institution started of
with the sale of between 800 and 400
shares and six months later another Sc
ries of about the same number was
issued. There are now $50 members who
ho,u 2O39 shares The first two series
of shares have matured and the TWO
men who took out the first loans were
given their cancelled notes and dischars-
ed mortgages last December. These two
men could not have secured the money
60 build their houses from any other form
of banking institution and the officers OF
the association are justly proud OF the
outcome of the first II years of business.
Every one of the first two series OF
shares matured netted the shareholder
5000. 95. Each shareholder put in 81 a
month for III years and eight months
making $40 in all, and the accrued IN
terest amounting to S6095.
One decided advantage of the system
as worked out in Burlington is the fact
that all investments made by the asso-
citation are on local property that can
he inspected first hand. There are thus
no reasonable chances of loss and every
shareholder can see just where his money
is invested through the association. The
Burlington institution has never had 10
seek investments outside as there nave
rfrvI,f 1Ar n
all loans. The institution has resources
of S109 900 nearly all of which is invested
in real estate loans in Burlington, South
Burlington and Winooski.
An aspect of the building and loan as
ISOLATION plan which was not fulH
brought out in the meeting mere was tht
fact that this form of institution was
in reality making business for the saw
ings banks, though apparently taking
their place to certain extent. Inc
savings banks cannot loan money for more
than about so per cent. of the actual value
of real estate, but the loan associations
can furnish nearly or fully 10 per cent
according to location When the borrow
.er reduces his loan to about so per cent
he can exchange his loan to savings
bank, thereby getting a Slightly lowe
rate of interest ard at the same time
turning money back into the association
TO help another man.
The proiect is in good hands and viii
be put on a definite and sound basis be
fore the board of trade turns it over t
the shareholders. The response to thu
plan in the meeting last week was 81
general that the formation of such al
institution is practically assured and tn
.Ways and means are now to be decided
upon. The new industries COMMITTEES
will collect all the information as t.
methods of organization it can secur
and then call meeting for organization