The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1913-12-16
Building and Loan
Association to be
EOrgdnized Soon
III
Enthusiastic Business Men Hold
Meeting Saturday Night to Talk
Over Plans
PFAENDER OF NEW ULM HERE
Committee of Three Appointed to
Study the Proposition and Re-
ss port at a Future Meeting


Fifteen of the energetic business
men of Redwood Falls met at the
Commercial Club rooms Saturday
evening to consider the proposition of
organizing a Building and Loan as
ISOLATION here.
For the past six months this pro-
position has been before the minds
of some of the enterprising citizens,
as one worthy of consideration, and
one that would be a solution of the
stortage of rentable dwellings and
also that of enabling those who de-
sire to build, to be able to borrow
money at a reasonable rate Of in
terest and on easy payments.
Mr.. Pfaender Invited to Talk
The sentiment in favor of such an
organization grew so strong that it
was decided to invite Mr.. VIM. Pfaen-
der of New Ulm, who has probably
had rs much experience along this
line as any man in the state, to go
over the plan and explain the differ
ent methods used by various organi-
cations of this kind.
Mr.. Pfaender has assisted in the
establishment of many of these or
CARNATIONS and has been affiliated as
secretary with the New Ulm Build
ing and Loan Association for the past
twenty three years. His wide scope
of experience along this line enabled
him to give advice that even to the
minutest details can positively be re-
lied upon.
Organizations Great Successes
m e organizing of such associa-
tions Mr.. Pfaender stated, is becom-
ing r.ore popular each year and sew
eral towns in our neighborhood are
preparing to organize. The organi-
zation at Tracy, which he helped to
start three years ago, is flourishing
nicely; Wabasso has had one for a
number Of years that has proven a
great success. "You simply can't go
wrong if the organization is proper
ly formed" is the way Mr.. Pfaender
puts it.
Not Money Making Scheme
The object of such an organization
as this is not to make money but en-
tirely one of cooperation by which
the man of small means has an equal
opportunity with the man having cap
ital. For the young man who wishes
to save his money in small amounts
and by weekly Or monthly payments,
and receive a good rate of interest
there is nothing that equals this plan.
Likewise, to the man who has lot and
desires to build for himself a home
on it, this is an opportunity whereby
he may borrow money to the extent
of two-thirds of the value of the
property, and payment is made as
rapidly as the building advances; the
association taking a mortgage on the
pTOpCIIy w CONSE IIc lOdH. 4HSSS
organizations have been most help
full in the making of many cities.
Features Should Appeal to All
The rate of interest received on a
savings account usually amounts to
from six to seven per cent, while that
of loan will, in term of ten to
twelve years, amount to from five to
six per cent, and the person making
the loan has opportunity to pay it
off in small monthly payments, or in
multiples of 100, thereby reducing the
interest.
Committee to Draw Plans
After going over the proposition
thoroughly, a committee, consisting Of
A. r. A. Laudon, Harry. Ward and
C. A. Lauterbach, was appointed to
study the matter of constitutions and
bylaws and to report at q meeting
to be called in the near future.
All building and loan organizations
are Incorporated under the laws Of
the state and are subject to the super
vision of the state bank examiner.