Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1920-05-06
BlJNDINGAND
LOAN ASSN,
Us, HOUSING
CORPORATION

The Chicago Tribune in an editorial
under date of May 3rd, sounds a note
of warning in regard to the restriction
of bank loans for building purposes.
Restriction OF building means a con-
tinuation Of high rents, if not fur
ther increase. It means a decrease in
jobs at good wages for men employed
in building trades. 1t means restric-
tion in the growth of the city. This
is truly applicable to the city of Grand
Rapids, where there is a dearth of
homes and the city is behind 25 per
cent in its building schedule. Grand
Rapids situated as it is, in the geo.
graphical center of Wisconsin and
beautifully located with four railroads
entering it from all directions makes
an ideal city in which to live, and a
long with its churches, library, swim
ming pool, paved streets, and drives
with an uneXcelled school system should
be able to house properly all who
would desire to live here. In order
to overcome this handicap, there was
lately incorporated in this city by
live set of young business men, build
ing and loan association, and as if
Grand Rapids had just awakened to its
opportunities another set of men start
ed a scheme for building houses which
is called a Housing Company. The
fundamental difference between. the
two organizations is that a building
and loan association is an organiza-
tion for loaning money to individuals
to build houses and make repairs on
homes which is directly under state
laws governing it's operation, and sub
ject to the supervision of the State
Banking Commissioner while the Hous
ing Corporation is a stock company
and is subject to the authority of its
officers who are elected by it's stock
holders. There are no paid officers of
a building and loan association, except
it's secretary and an assistant if the
business warrants it and the remun-
GRAFTON of the secretary is on a fee
basis and his paw increases and de
creases in proportion to the business
transacted The officers that pass on
loans are allowed a small fee to com
poneate them for their services, and
this fee is established by their constitu
tin and bylaws subject to the ap-
proyal cf the State Banking Commits
sio7 ~. Tie oficers Of a housing cor
nsrat;a7 receive their salaries as their
heard { directors NAV determine with
o-t he;no subject to state supervision,
Tha et9ckh0ld RS in building and
an association nav bn of two OF
moro varieties. Tho capital stock Of
Sl0A ear value per share Of which $50
sEara7 must have been subscribed and
paid. in before the association can start
business and the share holder who can
purchase shares Of stock upcn an in
stallment basis with guaranteed re-
turn mon the investment so per cent
of which may he drawn ont at aIy time
unon application. The Housing COM
many nay have z capital stock of
500 goo and start business with $10,-
0a0 naid in and the subscriber Of stock
paws in his money and takes chances
on his returns in proportion to the
pood or bad management Of the Off
cer9.
In order to make either company
success the public must put its re-
so.trces into the enterprise. Building
and loan stocks are considered as gilt
edoed securities as any bank stock and