Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-03-20

Gregory, Albert Il. Hull. q. r. Thsy-
or, John Rude, Allen Cooper. DR.. H.
A. Kinnan and DR.. Edwin Cobb, They
were named by DR.. II r. French. OF
the Marshalitown Club. The club wa,
asked to name tho directors TO per.
foot tho temporary organization, and
| tho directors and officers they elect
cd will serve until the frst annual
meeting OF tho company when the
organization will be perfected by the
election of permanent officers.
The plan evolved for the organiza-
ton OF the company was worked out
by committee, appointed by the
Elmwood Country Club boosters and
headed by @. f. Thayer as chairman
Boosters 70 Furnish Money.
Recognizing that there must be
more homes in Marshalltown TO
house people who must have n place
to live, rather than for the sake or
the investment. business men will
put up the first money TO finance the
building. The capital OF tho COM
psny has been divided into $4,000
worth Of preferred stock ana s@,o"o
worth OF common stock Business
men will buy the preferred stock
which will earn at the rate Of per
cent q year. This will be the first
money put into the company. 1t Is
expected that nifty will be asked 10
buy $500 worth each OF this stock.
The common stock will be pur-
l. .hn ~ n
homes. Both preferred and common
stock will have equal voting rights
in the corporation but only when tho
stock Is fully paid up, which means
that the preferred stock practically
will have the entire voting power as
the common stock will be paid for by
monthly payments by those building
homes.
Example Of Workable Plan.
An example of the workable plan
on which the company is organized
can best be illustrated by concrete
example. A man wants home. Say,
he has s., 500 and he wants to build a
house to cost, say, with the lot. SIS
coo. When he applies to the Mort
gage Security Company for help. he
will be told TO go TO a bank or the
Msrshalltown Savings and Loan As
ISOLATION and negotiate a first mort
gage for whatever amount he can Sc
cure. II he is able to borrow $4,000
on such first mortgage he will re-
turn to the Mortgage Security Com
pany and it will loan him the $l.0Os
more that he needs for building.
In doing So it will sell him fifteen
shares VI tire v0ITIpslys common
stock at 800 a share and take sec
ond mortgage secured by the stock
end the new house and drawing y
per cent per annufi.
Pays BY the Month.
Instead OF paying rant. he will be
gin paying by tho month to retire
the second mortgage and pay for his
common stock. The payment on one
will automatically retire the other as
the stock is secured by the mortgage
and Is not issued until paid for. II
will be held by the company until
paid for, and. IS a matter Of fact,
probably never will be issued TO the
home builder.
The difference in the earnings of
the company, as between the 5 per
cent the builder pays on his second
mortgage and the per cent the COM
pany pays those who bough its pre-
ferred stock, viii reduce by that
much the amount the. builder will
have 70 pay TO clean UP his mort
gage. It is expect ted that this diff
ference, as 1t accumualtes, win more
than pay for the email operating e1-
penses Of the company. It will have
no paid officers. except perhaps a
small wage for the secretary, who
will look after the details of the bust
ness.
At a meeting held this afternoon
temporary officers Of the organiza-
ton were chosen, in the persons Of
A. F. Hull, president, W. H. Arney.
treasurer, and C. H. Kemler, secre-
taIy.
May Enlarge Later.
That there is Demand for such q
company by people who want to
build homes. but who have not enough
money, is shown by The applications
that have been made since publicity
was given the first proposal to or
gantze such a company.
Boosters, who recognize that help
must be given to furnish homes, are
willing to furnish the first money.
but It is expected that permanent in
yestors will want the preferred stock
commodated either by increasing the
capitalization to provide more work
ing capital or by the original boost
ers selling their stock.
In the financing preference Is to be
given working men, and preferably
those who have steady Job and
who. Of course, must have a reason
able amount Of money Of their own.