The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-11-15
Building and Loan Association.

The project of forming building
and loan association in Brattleboro
which met with such favorable re-
ception when presented to mass
meeting of citizens last week, has been
furthered by the new industrial COM
mittee of the board Of trade this week
by the collection of detailed informa-
ton concerning the methods and re-
suits in the banks of a similar nature
in this state and in Massachusetts
The data collected regarding the loan
association in Burlington and Essex
Junction are particularly encouraging
as their conditions are more parallel
to the conditions in Brattleboro than
those which have been organized in
large Massachusetts cities. The Bur
lington institution makes very en-
thustiastic report of its work and gives
good ground for the belief that SINH
lar institution would have like sue
cess here.
The conditions in the Burlington
building and loan association bring
into prominence a side of the question
which was not fully treated in the
lecture by Mr.. Eldredge last week,
that is, the investment phase. The
usefulness OF this form OF an institu-
ton in enabling workingmen to build
and own their own homes was amply
demonstrated but the standpoint OF the
investor was not fully stated. OBJ
viously there must be a 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 desired loans, The Burling-
ton institution has been able to pay
six per cent interest on shares since
its organization in 1895. The rate of
interest to borrowers Is about 6 IL per
cent there and the shares OF the first
series, started in 1895, were matured
in II years and eight months. This
is decidedly better than the average in
Massachusetts, where the shares are
| matured in about IL years.
The Burlington institution started
| off with the sale of between 300 and
| 400 shares and six months later an
! other series of about the same number
was issued. There are now %
members who hold 2039 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 discharged mortgages last De
cember. These two men could not
have secured the money to build their
houses from any other form of banking
institution and the officers of the as
ISOLATION are Justly proud of the out
come of the first II years Of business
Every one of the first two series OF
shares matured netted the shareholder
S200.95. Each shareholder put in 81 q
month for II years and eight months
making $40 In all, and the accured 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 car
be. inspected first hand. There are thus
no reasonable chances of loss ant
every shareholder can see just where
his money Is invested through the as
ISOLATION. The Burlington institution
has never had to seek investments
outside as there have been enough
men right there to take up all loans
The institution has resources ofS109,
600 nearly all of which is invested ir
real estate loans in Burlington, Soutl
Burlington and Winooski.
An aspect of the building and loar
association plan which was not full!
brought out In the meeting here was
the fact that this form of institution
was in reality making business fol
the savings banks, through APPARENT!
taking their place to certain extent