The Birmingham age-herald., 1916-03-15
MORRIS PLAN BANK ID BE ESTABLISHED FOR SMALL LOANS Prominent Men IndOrsePrO- posed Bank Which Is to
 Be Opened Here MEETING HELD
 LAST NIGHT New York Company Takes One Fourth of StOck-Albert Hop
 kins Tells How the
 Plan Works


 At a meeting of a number of prominent business men at the Tutwiler last nlSnt' a movement was launched looking toward the organization of a company here to be operated under the Morris plan of industrial loans and investments.
 The purposes of the company, as out lined at the meeting, are to provide op- portunity for persons of moderate means to secure loans of money at reasonable rates of interest, repayable under equit- able conditions acceptable to the bor- rower and safe and remunerative to the lender
 Another object of the proposed company is to provide opportunity for persons Of moderate means to secure a safe and profitable investment in denominations of $50 or multples thereof, payments on which may be made in installments, bear ing interest. whereby small investors are provided with an incentive to save sys- tematically a fixed portion of their earn ings.
 The meeting last night was held in re- sponse to a call by Robert Jemison. Sr., who is a director of the Industrial F'i- nance Corporation of New York; which organizes these institutions under the Morris plan. Albert Hopkins, represent ing this corporations w. Woods White, president of the company operating in Atlanta, and Rollins N. Randolph, di- rector of the Atlanta company, were present and discussed the plan and the success which it had attained.
 FORMAL RESOLUTIONS
 At the conclusion of the discussion, the following resolution was passed:
 We. the undersigned, recognizing the need in this community of an institution where the industrial workers can secure loans upon fair conditions and at reason able rates of interest, and having con- sidered the methods of operation and the statements of success heretofore secured in other cities by the operation of the Morris plan of industrial loans and in sestments, recommend the establishment of such an institution in Birmingham.
 We are of the opinion that the plan proposed is practicable and safe in opera tion, reasonably profitable and that such an organization would be of great bene- fit to this community
 Those present at the meeting and agree ing to serve on the committee of organi- zation were Robert Jemison Sr, Forney Johnston, Maj. E. M. Tutwiler, P. G. Shook, W. M. Drennen, w. J. Adams E. W. Barrett M. V. Joseph, J. w. Don nelly K. A. Conyille, Hugh Morrow, H. U. Sims, J. H. Barr, R. S. Munger, B. F. Moore, Erskine Ramsay, Morris Bush, w. $. Brown, Crawford Johnson, Robert Jemison, IT,, and Eugene Brown. Others will be added to this committee and the first meeting of the body looking toward the establishment of the institution will be held within the next few days.
 Albert Hopkins, representing the Indus trial Finance corporation, which organ izes these companies, and which takes 9 per cent of the stock in each of them, discussed the Morris plan at length
 ''We now have g of these companies in operation, and 10 more are in the process of organization" he said "All of them have proved to be money makers and each has paid dividends after the first year. These companies have the support and cooperation of the indus trial corporations and other employers of labor, as well as the encouragement of the commercial banks.
 They provide loans to the man of small means without making it neces- sary for him to pay the exorbitant rates of interest charged by the so-called loan sharks. They do a business which the commercial banks do not desire an6 could not handle, and at the same time encourage thrift and in many cases de. velop business and make future depos- itors for the banks.
 HOW PLAN WORKS
 Institutions operating under the Nor. ris plan loan money at per cent, ano charge an additional per cent as al investigation fee. The man seeking the loan, first must really need the money He gives the name of two reputable mer with papf y,n xx,;l ling to indorse for him. He himself mus also have a regular position or some steady means of. livelihood. The posses sion of property is not required, either of the borrower or the indorser After investigation, if the borrower and the indorsers are found to be good men the loan is made It is repaid at the rate Of per cent each week, this amount going toward the purcha SC of installment stock. At the end of 50 weeks. the stock equals the amount of the loan, and he can withdraw that amount and pay his note.
 While the principal purpose of this system is to furnish opportunity to those of limited means, having regular em. ployment. to obtain loans at reasonable rates of interest, the plan of regular weekly payments on installment certifi- cates develops thrift. The borrower ac- quires the habit of saving and is encour- aged to continue these weekly payments although out of debt. in the purchase of installment certificates, which beai interest at the rate of per cent after p payments have been made.
 The institutions are entirely home controlled and home managed. The In dustrial Finance corporation, whici takes one-fourth of the stock, co-operates with the local board of supervisors the work of the institution. However, the control of the local men is not hampereo in any way. Among some of the promi- nent men who are connected with this corporation are Newcomb Carlton, pres ident of the Western Union; Theodore SEonts and Herbert Satterlee of New York, and Newton Baker. now secretary of war"
 MT. White, president, and Mr. Ran Golph director of the company operat- ing under the Morris plan in Atlanta told of the success of the institution there and of the need of one in all in- dustrial centers. J. H. Barr, John l. Raul, Maj. E. M. Tutwiler and R. S. Munger were among the local men wha spoke. favoring the proposition.