The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1919-09-19
HOUSING PLAN
To help STATE
New Jersey Chamber of Com
merce for Cooperation in a
Building and Loan Plan.
ITS SUCCESS IS PREDICTED
Manufacturers, Public and Loan Asso-
Citations Backing Is Sought-Finan-
ciaI Features of Plan-Five
Per Cent Payments.

TrentOn.-After months of investi-
CATION by an expert from the state de-
partment of labor. working in collah-
Grafton with the Bureau of State Re-
search, the New Jersey State Chamber
of Commerce suggests to the manufac-
turers and the public of the state of
New Jersey what it believes to be Il
sound solution of the municipal hOus-
ing shortage.
At a meeting of the governing body
of the New Jersey League of Building
and Loan Associations the plan receiv-
ed Endorsement of the leagues officials,
Frank ii. Smith, commissioner of the
state department of banking and in
surance; Judge William NewcOrn, as
SiS.ant attorney general, and Lewis T..
Bryant, commissioner of labor, who
was represented at the meeting by Miss
Lillian Erskine, who compiled the
housing portion of the plan, and
Charles ID. Freeman of ISelin, preSi-
dent of the State Chamber of Com
merce.
1t is the belief of the officials who
have studied the plan that it is the
best that has been presented so far
with view of making up for short
age of 10000 homes in this state alone.
To become effective the plan must
Lave the cooperation not only of man
ufactures of the state, but of the pub
lie in general and the building and
Of ho
Financial Feature of Plan.
The financial feature of the plan as
prepared by Howard II. Heydon, secre-
tary of the State Chamber of Com
merce, is as follows:
"(a) a building and loan associa-
ton organized under the statutes of
New Jersey to enable its members to
acquire real estate, make improve
ments thereon and remove encum-
hrances therefrom for the purpose of
erecting, under such restrictions as
may be determined, model detached,
s77awDed and apartment houses of Il
substantial character by the payment
of money in periodical installments or
principal sums.
"(b) The ISSUANCE of shares, all of
which shall be of the same par or ma
turity value all shareholders to occu-
ply the same relative status as to debts
and losses Of the association, but per-
hitting agreement with shareholders
who hold prepaid or matured shares
whereby they may waive participation
in the general profits of the associa-
ton in consideration of a fixed an
nual interest.
$50 The adoption of plan for
monthly or weekly instalment pay
ments on shares in the association, the
par value of such shares to be under
written or otherwise guaranteed by the
manufacturing and financial interests
of the community so that such shares
shall be convertible into cash at any
time within the period specified in the
bylaws of the association, and as a
further safeguard the establishment by
the association of reserve fund into
which shall be placed at least 10 per
cent of the annual net profits.
Five Per Cent Payments.
Upon the payment on shares in the
association to the value Of ) per cent
or more of the selling price of any de-
tached grouped or apartment houses
the purchaser shall be entitled TO enter
an agreement with the association I'M
der the law Of landlord and tenant and
their subsequent relationship shall be
established as such.
"The purchaser shall then be en-
titled to the occupancy of the premises
upon the monthly or weekly payment
of the stipulated rent, together with in
tereSt on the balance of the selling
price of the house at ; per cent per an
mum and regular installmentS on the
shares. When the value of the shares
reach at least p per cent of the selling
price of the property the purchaser
shall be entitled to receive deed for
same, the balance due to be secured by
ordinary building and loan bond and
first mortgage issued by the associa-
ton on said property, payable in such
weekly or monthly instalments with
interest at per cent per annum as
may be determined by the bylaws of
the association.
"Should any default be made in the
payment of any inStallment of rent, in
tereSt or payment upon shares or any
part thereof on any day whereon the
same is payable, and should the same
remain unpaid and in arrears for the
space of 80 days, unless otherwise
agreed between the association and the
purchaser, all right and interest of the
tenant shall be forfeited and shall ter
inmate and all money paid on account
of rent or interest previous TO such de-
fault shall be deemed as reimburse
ment for use and occupancy, wear and
tear of the premises during such occu-
pancy. The tenant shall surrender
possession of said premises within ten
days of the receipt in writing of no.
tce of the withdrawal of agreement
with the association and the associa-
ton shall be relieved from all obliga-
ton at law or in equity.
Privilege of Assignment.
"(e) The tenant shall have the privi-
lege of assigning his contract to any