Arizona republican., 1910-01-23
TO BUILD HOUSES
 FOR PHOENIX PEOPLE
A Plan in Some Respects Similar te Building and Loan-An investment for Capital That Also Stimulates
 Needed House Building.

R. H. Greene returned Friday morn- 1 ing from a business trip to Los An geles, where he has been Investigating
 the workings of new idea in build ' ing and loan associations.
 1 He has a number of business men
 interested with him and will organize company, to be known as Home Builders" The real object of the or ganization is to build homes under
 contract, the plan being for a party
 wanting a home to select a plan made by the company's architect at an agreed price upon a lot selected by the purchaser. Ten per cent or more of the cost of the house and lot is paid 1 in advance before construction is be gun. Then the party pays 1 per cent of the cost monthly until the house is paid for. To illustrate. should the house and lot cost s3,O00. $500 is paid in advance and s30 monthly. deducting the interest. the balance is applied up- on paying the cost. This provides the home. The money to build the home is the most difficult point, but Mir Greene thinks he has the safest and most profitable plan for the investor.
 It is proposed to organize a stock company. capitalized for 1,000.000 shares. par value s1. Of this. there will be 100000 shares preferred and 800. 900 common stock. The preferred stock will be guaranteed per cent dividend. 1A per cent quarterly. the common stock, the remaining profit up to per cent and surplus will be held in the surplus fund.
 Nine per cent interest will be charged on these contracts. and when one considers the fact that there is no expense. no renewal of loan. etc, this is cheaper than an 8 per cent
 mortgage. This interest, as can be readily seen. pays more than the divi- dends on the stock, and the profits of construction provide the surplus. This company will be able to build much cheaper than the ordinary contractor as 1t will undertake no building until it has the cash in hand. Buying for cash only, and in large quantities, it should save from 10 to 15 per cent in material alone. It will have it's own architect and superintendent, and hopes to employ the best mechanics. who will also be stockholders.
 Ahls blCtIit Sdy IL 10 tiit itl- vestment he has ever investigated. There are absolutely no speculative features. The company will own only the property it has sold under con- tract holding title to that until it is paid for. It will have debts and no liabilities. except the stock. so, should an financial trouble arise, it would have nothing to worry about, as the interest on the contracts would at all times pay the dividends. To illustrate how such company can grow, the Home Builders" of Los Angeles started in February. 1908. with $1,250 capital. Its last statement, october. 90. shows capital stock and surplus over $300. .000. and it expects the state ment at the end of this month to show $500, 900 capital and $75.000 surplus.
 MT. Green has been manager of the Phoenix Building and Loan associa tion for twenty years. and is it's pres ent president. but he declares this new building plan is the surest. most prof itable and best. He would be pleased to meet any one interested, either in securing a home or as an investor.